The governance of nonprofit organizations, defined as a system to define organizational goals and policies, oversee management and ensure accountability, has received scant attention in Japan. This paper finds that the corporation law enacted in 1998 that has provided a legal framework for citizens’ nonprofit activities for public benefit is flawed with regard to governance. Although the Nonprofit Corporation as defined in this statute is a membership corporation, one of its provisions is that directors represent the corporation. Nevertheless, members do not have the right to vote for directors, resulting in an incoherent structure of governance. Moreover, neither directors’ duties no.their accountability is clear in the statute. The nonprofit corporation law in the US, in contrast, defines a clear structure of governance in which the board of directors is made responsible for the operations of the organization and accountable to the general public. Nonprofit autonomy and self-discipline in the US may well be highly regarded, but in the US commentators have argued that such a structure is theoretical and difficult to put in practice, calling for reform to enhance nonprofit accountability. This paper suggests that Japanese NPOs should review, bearing the lessons from the US in mind, their bylaws so as to establish accountable structures of governance.

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This paper aims to grasp the current state of social capital and its relations to civic activities and environmental sustainability in Japan. The authors present findings from the first comprehensive survey designed to measure social capital, conducted in 2003, with the focus on civic activities in Japan, together with three cases relating to sustainable environmentalism. The major findings of the survey were: (i) each component of social capital and voluntary and nonprofit activities has a positive correlation, (ii) social capital has changed over time, and (iii) social capital exhibits major city-rural and regional gaps in Japan. Over time, trust and associations with neighbours and relatives have declined, while trust and associations with colleagues at work have been stable or even increased. Some implications are suggested concerning the roles of citizens, nonprofits, government and business: citizens and nonprofits play a crucial role in creating social capital, and government and business can play a facilitator role in the formation of social capital. Moreover, utilization of social capital through partnerships among different sectors is vital for vibrant communities and environmental sustainability.

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This study hypothesizes that the organizational factors suggested by stewardship theory can enhance nonprofit organizational performance. A mail survey of 200 medium-sized nonprofit organizations in Japan selected on the basis of random sampling was conducted (response rate: 57%) and the hypotheses were tested by quantitative data analysis. Overall, results indicated that the organizational factors prescribed by stewardship theory can improve nonprofit organizational performance, specifically, the soft aspect of organizational performance, which is to say, human-resource-related performance (i.e., affective commitment and organizational citizenship behaviors), with a shared mission reported as the most powerful contributor. Participation in decision making together with information collecting and training contributed to both soft performance and high ratings of organizational effectiveness, while feedback was found to enhance both membership growth and soft performance. Furthermore, self-management behaviors on the part of organization leadership increased revenue growth and rating of organizational effectiveness together with soft performance.

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The purpose of this paper is to analyze the decisive factors in the four processes, from project planning to conclusion of contracts with NPOs, in a public advertising proposal system in Osaka prefecture, as the first step toward privatization of public services accompanied by high accountability. These factors are also considered on the basis of their potential to act as clear standards for selecting entrusted-projects and NPOs and in estimation of projects to discuss accountable ways of decision-making. As a result, items like fixing of standards and systems with clearly-stated “guidelines” or project “market prices” are recognized as affecting accountable decision-making. Likewise, experiential knowledge is found in the form of “expertise of NPOs” or “level of understanding of NPOs by adjudicators”. The government should study service levels and efficiencies to fulfill its responsibility for explaining project decision-making, including not only NPOs, but also private companies and local public corporations. It is necessary to systematize examinations so as not to be susceptible solely to achievement or size of NPOs in choosing those most appropriate for solving administrative problems.

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Since the late 1990s, China has witnessed a rapid growth of NGOs, which are actively seeking interactions with the state in various arenas and on different levels. This paper examines NGO-state interactions, focusing on how NGOs struggle to reconfigure their relationship with the state in a way more beneficial to their development. The paper first discusses the emergence and growth of Chinese NGOs. This is followed by examination of Chinese NGOs’ strategies directed toward three aspects: struggling for organizational legitimacy, using government networks to achieve organizational goals, and attempting to enter the decision-making process. The paper finds that Chinese NGOs have developed a wide range of strategies in their interactions with government, from adapting to state control to actively influencing government policy, and NGO-state interactions mainly depend on ‘un-institutional’ channels to operate.

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