Leadership perspectives on mitigating corruption in India's nonprofit sector

Abstract: Corruption is a well-known issue in India, yet research on its prevalence in the nonprofit sector is limited, particularly from the perspective of nonprofit professionals. This qualitative research, therefore, aimed to explore corruption in nonprofit organizations through the insights of nonprofit leaders. Using narrative inquiry grounded in Institutional Theory, the study examined donor and State-led pressures on mitigating corruption and the role of organizational governance in implementing anti-corruption measures. The analysis utilized key Institutional Theory concepts, including institutional logics, isomorphism, entrepreneurship, authority, and leadership, to interpret the findings. The research revealed that corruption was believed to be common in the nonprofit sector, but not universally widespread. Furthermore, State-led pressures led to increased compliance with anti-corruption laws; however, the State's authority was questioned. Additionally, nonprofits increasingly adopted corporate practices, driven by the CSR mandate and blurring boundaries between donors and nonprofit organizations. However, external pressures also had negative effects, as some nonprofits practiced unlawful ways to maintain legitimacy. The findings underscored the role of institutional entrepreneurship in anti-corruption reforms, and the significance of institutional authority and leadership in cultivating an ethical environment. Overall, corruption remained a complex issue, necessitating further research to identify sector-wide trends in transparency and accountability mechanisms.