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The reputation trap of NGO accountability

Published online by Cambridge University Press:  26 August 2015

Stephen E. Gent ,
Mark J. C. Crescenzi ,
Elizabeth J. Menninga  and
Lindsay Reid
Stephen E. Gent*
Affiliation:
Department of Political Science, University of North Carolina at Chapel Hill, NC, USA
Mark J. C. Crescenzi
Affiliation:
Department of Political Science, University of North Carolina at Chapel Hill, NC, USA
Elizabeth J. Menninga
Affiliation:
Department of Political Science, University of Iowa, IA, USA
Lindsay Reid
Affiliation:
Department of Political Science, University of North Carolina at Chapel Hill, NC, USA
*
E-mail: gent@unc.edu
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Abstract

Can concerns for one’s reputation cause non-governmental organizations (NGOs) to alter their behavior to the detriment of achieving their policy goals? To answer this question, we explore the relationship between NGOs and their donors. Our theoretical model reveals that reputation can be a key piece of information in the decision to fund an NGO’s activities. Reputation can become so important to the NGO’s survival that it interferes with the long-term policy goals of the organization. As such, reputations can become a double-edged sword, simultaneously providing the information donors seek while constraining NGOs from realizing policy goals. We apply this logic to the problem of NGO accountability, which has received increasing attention in recent years, and demonstrate that the tools used by donors to improve accountability can trigger unintended consequences. We illustrate this strategic dynamic with two types of NGO activity: water improvement and international crisis mediation.

Keywords

Non-governmental organizationsReputationAccountabilityPrincipal-Agent Problems
Type
Original Papers
Information
International Theory , Volume 7 , Issue 3 , November 2015 , pp. 426 - 463
Copyright
© Cambridge University Press 2015 

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