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The Relationship Between Sarbanes–Oxley Policies and Donor Advisories in Nonprofit Organizations

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  • Gregory D. Saxton

    (York University)

  • Daniel G. Neely

    (University of Wisconsin – Milwaukee)

Abstract

This study examines the impact of Sarbanes–Oxley (SOX) on the nonprofit sector. Focusing on three key SOX policies applicable to charities—conflict-of-interest policies, records retention policies, and whistleblower policies—this study tests the relationship between the existence and addition of these policies on subsequent ethical and governance lapses as reflected in the issuance of “donor advisories” by the large third-party ratings agency Charity Navigator. The findings suggest that, controlling for other relevant organizational factors, the three SOX-inspired written policies are related to a reduced likelihood of donor advisories in the organizations rated by Charity Navigator.

Suggested Citation

  • Gregory D. Saxton & Daniel G. Neely, 2019. "The Relationship Between Sarbanes–Oxley Policies and Donor Advisories in Nonprofit Organizations," Journal of Business Ethics, Springer, vol. 158(2), pages 333-351, August.
    • Handle: RePEc:kap:jbuset:v:158:y:2019:i:2:d:10.1007_s10551-018-3843-0
    DOI: 10.1007/s10551-018-3843-0
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    References listed on IDEAS

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    Cited by:

    1. Dang, Canh Thien & Owens, Trudy, 2024. "Non-governmental organizations’ motivation to diversify:: self-interest or operation-related? Evidence from Uganda," LSE Research Online Documents on Economics 120200, London School of Economics and Political Science, LSE Library.
    2. Canh Thien Dang & Trudy Owens, 2024. "Non-governmental organizations’ motivation to diversify: self-interest or operation-related? Evidence from Uganda," Oxford Economic Papers, Oxford University Press, vol. 76(2), pages 561-584.

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