Multi-Actor Collaboration and NGO Accountability: An NGO Case Study

Abstract It is undeniable that nongovernmental organization (NGO) beneficiaries should have their interests protected, especially when investing in and borrowing from a microfinance provider. Yet, prior literature highlights the patchy nature of beneficiary accountability when NGOs prioritize funders’ and donors’ accountability and commercialization. In this longitudinal case study on a large development microfinance NGO, multi-actor collaboration between donors, funders, and regulators to impose accountability requirements helps protect the interests of NGO beneficiaries. New institutional rules and accountability norms were developed to create dialogs between NGOs and their beneficiaries. Coercive mechanisms were established to sanction situations where beneficiary interests were not upheld in a type of surrogate accountability. Our longitudinal study integrates institutional theory and the stakeholder collaboration concept to show how donors and funders can work with government regulators to increase their effectiveness and protect beneficiaries. However, cultural issues limit full surrogate accountability.