A multiple stakeholder approach to nonprofit board effectiveness: the employee perspective Online publication date: Tue, 09-Jun-2015
by Nina Nguyen; Denise M. Jepsen
International Journal of Corporate Governance (IJCG), Vol. 6, No. 1, 2015
Abstract: Although the multiple stakeholder approach is a well-known theory of board evaluation, employees are an understudied but important stakeholder group. This study seeks to understand the ways in which employees' perception of the effectiveness of their board of directors can influence employee attitudes and behaviour. Using responses from 166 employees in a nonprofit registered club, the study shows that employees do form an impression of the effectiveness of their board. Furthermore, employees' perception of effectiveness of the board was positively related to their perception of the quality of their relationship with the organisation and negatively related to their intention to leave. These findings offer the potential for improved organisational performance and productivity. The study provides empirical support for broadening the stakeholders when considering board performance and suggests board-staff perspectives as a new avenue for research. The paper offers insights on potential policy and management of the board of directors.
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