GOVERNANCE OF THE SOCIAL ECONOMY: A LITERATURE REVIEW

Abstract

Considering in one side, the differences between the non-profits and profits entities and, in other side, given the importance of governance to monitoring the protection of the interests of the different stakeholders, this literature review aims to identify the special features of the social economy entities and its effects in the principles and guidelines of an adequate governance model for these entities. An important conclusion after the analysis of several frameworks is that the latest approaches place less importance on formal aspects such as the governing body roles or composition. Nowadays the concerns are increasingly focused in the best ways to adopt viable strategies and business models that will ensure survival and growth of non-profit entities. In Portugal we identified the specificities of the Portuguese third sector that is limited to the fulfilment of the legally imposed requirements to these organizations. Regarding governance aspects, Portuguese organizations are not subject to codes of good practice or if they follow them, they are designed for the for-profit sector and do not address the main concerns of the non-profit sector.