Abstract
The purpose of this article is to present a framework to understand transparency in the third sector and then to explore the main research streams regarding the disclosure of information and accountability by conducting a systematic literature review on the antecedents and dimensions of the transparency of information disclosed by non-profit organizations (NPOs). The essential questions of this work are addressed from an international perspective. In particular, we explore three research questions: (1) why should NPOs disclose transparent information to stakeholders? (2) Why do not all NPOs disclose transparent information? (3) What means do NPOs use to disclose transparent information? Our results highlight the lack of transparency legislation in the third sector, leading NPOs to adopt the voluntary disclosure of information policies to improve the perceived credibility of these entities by their stakeholders. In conclusion, our study highlights the importance of developing a systematic body of knowledge regarding the situation of transparent, voluntary information disclosure in the sector. Moreover, the Sustainable Development Goals promulgated by the United Nations place a high value on transparency for the accountability of institutions. To achieve sustainable development, both peace and the governance of institutions are needed. Reducing corruption and promoting transparency are among the goals which should be reached to achieve social sustainability.
Highlights
Worldwide, the number, size and prominence of non-profit organizations (NPOs) is growing [1,2]; this growth is caused by the increase of social problems [3] of an economic, political, and religious nature etc. [4] NPOs are aimed at accomplishing functions intended to strengthen the social and ecological dimensions of sustainable development [5]
Transparency is important for any organization, in the case of NPOs, it is especially relevant to demonstrate that the resources they receive are used to fulfill the purpose for which these organizations were conceived; credibility with society can mean the survival of the entity
Cooperation with the Public Sector Another reason found in the literature regarding why NPOs should disclose transparent information is due to the close relationship between the public sector and the third sector, as we report below
Summary
The number, size and prominence of non-profit organizations (NPOs) is growing [1,2]; this growth is caused by the increase of social problems [3] of an economic, political, and religious nature etc. [4] NPOs are aimed at accomplishing functions intended to strengthen the social and ecological dimensions of sustainable development [5]. [4] NPOs are aimed at accomplishing functions intended to strengthen the social and ecological dimensions of sustainable development [5] In this sense, the social mission of third-sector organizations is to meet collective demands that the public sector is not able to cover. The social mission of third-sector organizations is to meet collective demands that the public sector is not able to cover To achieve this mission, they need the trust of their stakeholders, making it necessary that the actions carried out by NPOs are transparent [6]. They need the trust of their stakeholders, making it necessary that the actions carried out by NPOs are transparent [6] Notwithstanding this fact, different cases of fraud have been observed in the sector [7]. A key aspect of credibility is the transparency of the information that NPOs disclose to their stakeholders [8]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
