The governance role of the board in corporate strategy: a comparison of board practices in 'for profit' and 'not for profit' organisations Online publication date: Thu, 30-Mar-2006
by Chris Bart, Ken Deal
International Journal of Business Governance and Ethics (IJBGE), Vol. 2, No. 1/2, 2006
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.
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