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Out of the Shadows: Using Value Pluralism to Make Explicit Economic Values in Not-for-Profit Business Strategies

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  • Jenny Green

    (University of Technology Sydney)

  • Bronwen Dalton

    (University of Technology Sydney)

Abstract

In the last decade, Australian federal and state governments’ commitment to the economic rationalist imperatives of performance measures, accountability for outcomes, and value-for-money has driven significant change in the Australian not-for-profit community services sector. In an environment shaped by neoliberal-inspired government policies and a renewed government commitment to austerity, Australian not-for-profit community service organizations are now, more than ever, actively engaged in a variety of income-generating strategies to achieve and/or maintain economic sustainability. Central to this process is meeting the dual challenge of succeeding financially in a competitive environment and simultaneously serving mission. In this context, it is time to more closely examine the impact of these challenges, in particular the implications for the organizational values of not-for-profit community service providers themselves. This paper reports on a qualitative study of fourteen not-for-profit community service organizations, their core purposes, and their strategies for economic sustainability. In addition to the new data presented here, this paper contributes to the broader theoretical framework—the lens of value pluralism, which, we argue, provides a sharper focus on the relationship between mission and margin.

Suggested Citation

  • Jenny Green & Bronwen Dalton, 2016. "Out of the Shadows: Using Value Pluralism to Make Explicit Economic Values in Not-for-Profit Business Strategies," Journal of Business Ethics, Springer, vol. 139(2), pages 299-312, December.
    • Handle: RePEc:kap:jbuset:v:139:y:2016:i:2:d:10.1007_s10551-015-2618-0
    DOI: 10.1007/s10551-015-2618-0
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    References listed on IDEAS

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    1. Elizabeth Webster & Glenys Harding, 2000. "Outsourcing Public Employment Services: The Australian Experience," Melbourne Institute Working Paper Series wp2000n04, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    2. John Quiggin, 2005. "Economic liberalism: fall, revival and resistance," Australian Public Policy Program Working Papers WP3P05, Risk and Sustainable Management Group, University of Queensland.
    3. Commission, Productivity, 2010. "Contribution of the Not-for-Profit Sector," Research Reports, Productivity Commission, Government of Australia, number 39.
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    Cited by:

    1. Best, Bernadette & Miller, Kristel & McAdam, Rodney & Moffett, Sandra, 2021. "Mission or margin? Using dynamic capabilities to manage tensions in social purpose organisations’ business model innovation," Journal of Business Research, Elsevier, vol. 125(C), pages 643-657.
    2. Erin I. Castellas & Wendy Stubbs & Véronique Ambrosini, 2019. "Responding to Value Pluralism in Hybrid Organizations," Journal of Business Ethics, Springer, vol. 159(3), pages 635-650, October.
    3. Giacomo Boesso & Fabrizio Cerbioni & Marco Ghitti, 2022. "Strong planners versus weak planners: An analysis of nonprofit organizations," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2022(2 Suppl.), pages 143-166.
    4. Lu Jiao & Graeme Harrison & Jinhua Chen, 2023. "Revenue growth in not‐for‐profit organisations: The effects of interactive and diagnostic controls and organisational culture," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(2), pages 2273-2294, June.

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