The governance role of the board in corporate strategy: a comparison of board practices in 'for profit' and 'not for profit' organisations

Author： Bart Chris Deal Ken

Publisher： Inderscience Publishers

ISSN： 1477-9048

Source： International Journal of Business Governance and Ethics, Vol.2, Iss.1-2, 2006-03, pp. : 2-22

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Abstract

To what extent are there differences in the strategic practices of Boards of 'for profit' and 'not for profit' organisations? While there are obvious differences in the way these two types of organisations operate, the question as to whether those differences extend into the boardroom and, especially, how directors engage with their managements on strategy is currently unknown. Accordingly, this paper reports on the nature and extent of the board's strategic role in both for profit and not for profit organisations and then makes a direct comparison of them. Interestingly, the lack of significant differences between these two types of organisation constitutes the major finding of this current investigation and suggests that, in the area of governance, the supposed or claimed differences between for profit and not for profit organisations may be more imagined than real. In fact, there may be some very practical reasons for their similarity.