Stakeholder participation in non-profit organizations: the case of Italian banking foundations

In the light of the stakeholder-agency theory and other theoretical approaches, stakeholders have a fundamental role in decision-making processes of non-profit organizations. Their participation in decision-making processes, in particular, in governing bodies and mission reporting is an essential element for effective and coherent organization management. This should be even more common in third sector organizations, which have clear local government guidelines for stakeholder engagement. The present study carries out empirical research into the Italian Banking Foundations (IBFs), a particular kind of grant-giving foundations, with specific statutory obligations of attention towards their stakeholders, especially as far as the local communities and beneficiaries of contributions are concerned. Using content analysis, we study the Annual Reports for 2010 and statutes of the 88 IBFs, in order to verify the actual degree of stakeholder participation in governing and reporting bodies. Analysis of the results shows a tendency towards stakeholder management, rather than actual stakeholder engagement in decision-making processes. In the light of these considerations, we highlight the limits of the present study and suggest future research developments.