The legitimising processes of a new regulator: The case of the Australian Charities and Not-for-profits Commission
Accounting, Auditing & Accountability Journal
ISSN: 0951-3574
Article publication date: 20 June 2016
Abstract
Purpose
The purpose of this paper is to strengthen the theoretical understanding of the processes through which a new regulator seeks to gain legitimacy within an existing regulatory space. The authors do this by investigating the case of the Australian Charities and Not-for-profit Commission (ACNC).
Design/methodology/approach
Synthesising legitimacy theory with the concept of regulatory space, the authors analyse formal public discourse surrounding the establishment and operations of the ACNC.
Findings
Regulation is essentially a context-bound political process in which a new regulator needs to establish legitimacy to ensure its survival. It must convince its constituents that it has developed processes to operate effectively and professionally in addressing constituents’ needs, to bargain authoritatively with other regulators in establishing its operational boundaries, and to engage politically with government and constituents. Over a relatively short time, the ACNC built legitimacy, despite the political threats to its formal regulatory authority.
Research limitations/implications
The conclusions are based on the analysis of one case. There is scope for further investigations of the processes by which new regulators establish their legitimacy in different contexts.
Practical implications
The potential for a political threat to the authority of a new regulator, and the difficulty of achieving regulatory reform, particularly in a federated system such as Australia, highlight the necessity for a new regulator to develop a compelling discourse of legitimacy.
Originality/value
The authors synthesise regulatory space and legitimacy perspectives, contributing to an understanding of the processes of regulation.
Keywords
Acknowledgements
The authors thank the two anonymous reviewers; Dr Carolyn Cordery and participants at the 2014 AFAANZ Conference Auckland; Dr Mitchell Stein and participants at the 2014 Critical Perspectives Conference (CPA) Conference Toronto Canada; participants at the School of Accounting and Finance Seminar Series, University of Adelaide; and participants at the 2nd Annual Public Sector and Non-profit Symposium 2014, La Trobe University, Melbourne.
Citation
Artiach, T., Irvine, H., Mack, J. and Ryan, C. (2016), "The legitimising processes of a new regulator: The case of the Australian Charities and Not-for-profits Commission", Accounting, Auditing & Accountability Journal, Vol. 29 No. 5, pp. 802-827. https://doi.org/10.1108/AAAJ-10-2014-1850
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited