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Journal of Management and Governance

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06-04-2016

The role of the board in shaping foundations’ strategy: an empirical study

Authors: Giacomo Boesso, Fabrizio Cerbioni, Andrea Menini, Antonio Parbonetti

Published in: Journal of Management and Governance | Issue 2/2017

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Abstract

This paper investigates the relationships of the choice of philanthropic strategy with board capital (diversity and networks), board activities (board processes, internal board committees, and board effectiveness), and CEO leadership. Using a sample of 110 Italian foundations, the research shows that board processes have the strongest positive association with an evolved strategic approach to philanthropic institutional grant-giving, while board diversity and strong CEO leadership are associated with the strategic approach only under certain conditions. In particular, good governance processes (e.g., training the board, self-evaluation of trustees, setting the stage for effective board and committee meetings, implementing control software, and steering meetings to improve the board’s analysis) are positively associated with evolved strategic approaches to philanthropy (e.g., signaling other funders for the best grantees, improving the performance of grant recipients, and advancing selected social fields’ state of knowledge and practice).

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While the first three types of projects refer to operative foundations, which act as potential social merchant banks, the last two refer to grant-making foundations, which are more interested in supporting only financially meritorious activities proposed by the so-called third sector players (associations, groups, non-profit firms, etc.).

Foundations can implement a variety of methods to assess their social impact, such as output measurement, outcome measurement, added social value, externality analysis, social reports, sustainability reports, focus groups, and stakeholders’ analysis.** This research was funded by: Fondazione Cassa di Risparmio di Padova e Rovigo, Fondazione Cassa di Risparmio di Modena, Fondazione Antonveneta, Università degli Studi di Padova (CPDA158434)**

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Title: The role of the board in shaping foundations’ strategy: an empirical study
Authors: Giacomo Boesso
Fabrizio Cerbioni
Andrea Menini
Antonio Parbonetti
Publication date: 06-04-2016
Publisher: Springer US
Published in: Journal of Management and Governance / Issue 2/2017
Print ISSN: 1385-3457
Electronic ISSN: 1572-963X
DOI: https://doi.org/10.1007/s10997-016-9348-2

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