Given the increasing level of political, economic and social pressures, the role of third sector non-executive directors, undertaken voluntarily and unremunerated, is poised to become less attractive.
The Australian disability sector is the current research focus due to environmental pressures on the governance structures. The Australian National Disability Insurance Scheme (NDIS) was introduced to fund lifestyle requirements of disabled people in
Australia. Previously this funding was provided to disability organisations that essentially decided the care available to its disabled clients (Soldatic & Pini 2012).
Under the NDIS these disabled clients now start to control the funding stream previously provided to disability organisations by state and federal governments.
The challenge faced by the boards of disability organisations is that they are now in the position of courting the disabled to provide the services which will then be paid for instead of dispensing services directly to the disabled. This customer orientation change in organisations’ focus drives considerable pressures on the current boards to reframe the strategic emphasis of the organisations from essentially a paternalistic to a more market oriented perspective.
Given the increasing level of political, economic and social pressures, the role of third sector non-executive directors, undertaken voluntarily and unremunerated, is poised to become less attractive. Understanding the relationship between volunteering for one of these roles and the symbolic, career or social capital this provides to the individual means that board roles in the third sector become more feasible for both the director and the organisation when understanding the potential rewards that accrue to the individual director.