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Briefing Paper No 9
Accountability within Community Enterprise

What is accountability?
Accountability means to explain or to justify one's actions. Responsibility is therefore linked to accountability because those responsible for an action or decision are "held accountable" for it.

How does accountability work within a community enterprise?
Acountability within community businesses is usually achieved through the adoption of co-operative style principals. Most enterprises depend on a small group who serve on a "board of directors" or "management committee". These people are voted onto the board by stakeholders or members at an AGM (Annual General Meeting) and are deemed as representative of the community and its needs. The director's role is therefore to be held accountable for decisions and actions taken on behalf of the community.

How far does this help achieve accountability to the community and stakeholders?
Accountability can only happen when participation is encouraged. Local people can play an active part in the development of the business, a fundamental objective of community enterprise (for the people, by the people). Links with other local organisations and the local elective democracy help to provide balanced representation at board level.

In community action, large numbers of people can be mobilised when for or against something such as a "clear cut issue", but usually community enterprise work falls to a small group. The danger is that this executive group fall out of touch with their constituency, failing to keep them informed or ceasing to be effectively accountable. Often there is not a sinister reason for this, just a forgetfulness that others don't have same means of knowing what is happening as they do.

Membership arrangements based on annual renewal of membership, small but recommitted each year. Self-appointing group otherwise…

How can accountability be improved?
Democracy is a two way process - you must actively invite the community to contribute. There are a number of simple strategies which can encourage this participation:

  • Hold an Annual General Meeting (AGM): this should be advertised in the local press, and via posters/leaflets. The requirement to advertise locally should be included in your community enterprise constitution.
  • In addition to the AGM, ensure you communicate at least once a year with membership and local community i.e. newsletter or email news.
  • Consistency of effort to recruit members: the offer of membership must be open and known to be there. Ensure people are aware that they can join and are constantly reminded that this is possible. Existing directors and members should also be seeking new members and encouraging participation. Where the enterprise provides a local service, users of service are potential new members, as they will have a direct interest in how services operate.
  • Make sure membership is recognised: offer membership cards or papers which clearly states member status and rights, responsibility, orgnaisational aims and objectives.

1. Recruit from other organisations: by networking with other groups, enterprises expand their recruiting ground and root into the wider community. Surrogate membership works by admitting organisations as members and/or directors. When other organisations suggest directors from their organisation, it must be made clear that the duty of directors is to the community enterprise commitment and not to the organisation who suggest them!

Websites

AcountaBility: www.accountability.org.uk
Social Accountability International: www.cepaa.org

Further Reading

Accountability and Effectiveness Evaluation in Non-Profit Organisations James Cutt, Vic Murray, Victor V. Murray ISBN: 0415213398
Accountability: Freedom and Responsibility Without Control Rob Lebow & Randy Spitzer ISBN: 157675183X
Accountability: Getting a Grip on Results Klatt & Stoddart ISBN: 0773761721
The Oz Principal: Getting Results Through Individual & Organisational Accountability Roger Connors, Tom Smith, Craig R Hickman ISBN: 0735200432

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Network Co-ordinator : Andy Wynne MPEN, Bridge 5 Mill, 22a Beswick Street, Manchester, M4 7HR
mpen@bridge-5.org tel - 0161 273 1736

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