The Dynamics of NPO Stakeholder Salience: Balancing Transparency and Accountability

Numerous studies suggest that prioritising salient stakeholders in non-profit organisations (NPOs) might ensure the effective discharge of accountability. Other studies indicate that prioritising primary stakeholders often strengthens upward accountability, this frequently comes at the expense of downward accountability, leading to significant accountability tensions. To examine this dynamic and identify salient stakeholders, this research adopted a qualitative approach, conducting semi-structured interviews with 32 NPO leaders and their stakeholders in Saudi Arabia. Drawing from stakeholder salience theory (Mitchell et al., 1997), this research explores the interviewees’ perspectives on accountability practices and stakeholder relationships within the sector whilst deeply understanding the dynamic and explicitly capturing its effects on accountability.
The findings revealed a dynamic shift in the influence of salient stakeholders. Regulatory reforms have elevated the role of regulators, reshaping accountability structures and transparency expectations. The analysis demonstrated that the salience dynamic not only adds layers to hierarchical accountability but also broadens formal mechanisms to meet diverse stakeholder expectations, positioning transparency as a critical element in discharging multiple accountabilities. One of the main influences of the salient is that the regulators have leveraged their power to support beneficiaries and the public, influencing the structure of NPOs’ accountability and the level of transparency of formal accountability mechanisms.