Article Sidebar

Download
Download Article

Main Article Content

Abstract

This study examines the role of community-based accountability and social accounting practices in enhancing community welfare through local community organizations in Indonesia. It aims to explain how transparent governance, community participation, responsiveness, social-impact measurement, and public reporting contribute to inclusive and sustainable welfare outcomes. The study employs a qualitative literature review by synthesizing peer-reviewed journal articles, conference proceedings, and institutional reports concerning nonprofit accountability, village institutions, community organizations, social accounting, and welfare development. The selected literature was analyzed thematically to identify recurring concepts, empirical patterns, institutional challenges, and emerging research directions. The results show that community-based accountability improves organizational legitimacy and program relevance when it extends beyond administrative compliance and enables beneficiaries to influence planning, monitoring, evaluation, and corrective action. Social accounting strengthens this process by connecting financial resources and organizational activities with outcomes such as livelihood improvement, service accessibility, empowerment, social inclusion, trust, and social cohesion. The principal finding is that accountability and social accounting function most effectively as complementary mechanisms rather than independent practices. Their contribution to welfare depends on managerial competence, accessible information, meaningful participation, digital capacity, and institutional responsiveness. The study highlights the need for participatory, context-sensitive, and digitally supported accountability systems within Indonesian local organizations.

Keywords

Community-Based Accountability Social Accounting Community Welfare Local Community Organizations Indonesia

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

How to Cite
Siregar, M. F., Nasution, M. H. A., Sidabutar, E. U. B., Panjaitan, V., & Pandiangan, J. E. (2026). The Role of Community-Based Accountability and Social Accounting Practices in Enhancing Community Welfare: Evidence from Local Community Organizations in Indonesia. Golden Ratio of Community Services and Dedication, 6(2), 197–210. https://doi.org/10.52970/grcsd.v6i2.1098
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Acintya, A., Goncharenko, G., Smith, S., & Matilal, S. (2025). A networked perspective on NGO accountability in the digital realm. The British Accounting Review, Article 101740. Advance online publication. https://doi.org/10.1016/j.bar.2025.101740
  2. Acintya, A., Matilal, S., Smith, S., & Goncharenko, G. (2026). Co-producing NGO accountability accounts with beneficiaries: Evidence from Indonesia. Accounting, Auditing & Accountability Journal, 39(5), 776–803. https://doi.org/10.1108/AAAJ-08-2024-7309
  3. Agyemang, G., O’Dwyer, B., & Unerman, J. (2019). NGO accountability: Retrospective and prospective academic contributions. Accounting, Auditing & Accountability Journal, 32(8), 2353–2366. https://doi.org/10.1108/AAAJ-06-2018-3507
  4. Banerjee, A., Carlsson-Wall, M., & Nordqvist, M. (2024). Hybrid board governance: Exploring the challenges in implementing social impact measurements. The British Accounting Review, 56(5), Article 101359. https://doi.org/10.1016/j.bar.2024.101359
  5. Cavicchi, C., & Vagnoni, E. (2023). Digital information systems in support of accountability: The case of a welfare provision non-governmental organisation. The British Accounting Review, 55(5), Article 101112. https://doi.org/10.1016/j.bar.2022.101112
  6. Cordery, C. J., Belal, A. R., & Thomson, I. (2019). NGO accounting and accountability: Past, present and future. Accounting Forum, 43(1), 1–15. https://doi.org/10.1080/01559982.2019.1593577
  7. Cordery, C. J., Goncharenko, G., Polzer, T., McConville, D., & Belal, A. (2023). NGOs’ performance, governance, and accountability in the era of digital transformation. The British Accounting Review, 55(5), Article 101239. https://doi.org/10.1016/j.bar.2023.101239
  8. Dewi, M. K., Manochin, M., & Belal, A. (2021). Towards a conceptual framework of beneficiary accountability by NGOs: An Indonesian case study. Critical Perspectives on Accounting, 80, Article 102130. https://doi.org/10.1016/j.cpa.2019.102130
  9. Fauzi, N., Cicalarici, C., & Rosita, I. (2023). Accountability mechanism in village-owned financial institutions: A case study on communal-based financial institutions in West Sumatra. Economics, Business, Accounting & Society Review, 2(3), 230–240. https://doi.org/10.55980/ebasr.v2i3.117
  10. Goddard, A. (2021). Accountability and accounting in the NGO field comprising the UK and Africa: A Bordieusian analysis. Critical Perspectives on Accounting, 78, Article 102200. https://doi.org/10.1016/j.cpa.2020.102200
  11. Grossi, G., Laguecir, A., Ferry, L., & Tucker, B. (2024). Accounting and accountability for managing diversity tensions in hybrid organisations. The British Accounting Review, 56(5), Article 101470. https://doi.org/10.1016/j.bar.2024.101470
  12. Hall, M., & O’Dwyer, B. (2017). Accounting, non-governmental organizations and civil society: The importance of nonprofit organizations to understanding accounting, organizations and society. Accounting, Organizations and Society, 63, 1–5. https://doi.org/10.1016/j.aos.2017.11.001
  13. Handley, K. L. (2025). Accountability and social impact evaluation in a small NPO: Stakeholder ambiguity, networks and trust. Accounting, Auditing & Accountability Journal, 38(9), 239–264. https://doi.org/10.1108/AAAJ-07-2023-6547
  14. Harinurdin, E., Laksmono, B. S., Kusumastuti, R., & Safitri, K. A. (2025). Community empowerment utilizing open innovation as a sustainable village-owned enterprise strategy in Indonesia: A systematic literature review. Sustainability, 17(8), Article 3394. https://doi.org/10.3390/su17083394
  15. Kingston, K. L., Luke, B., & Vinnari, E. (2025). Understanding beneficiary evaluative capacity within nonprofit organisations through an immanent perspective. Accounting, Auditing & Accountability Journal, 38(2), 643–673. https://doi.org/10.1108/AAAJ-02-2024-6906
  16. Laine, M. (2024). Accounting, reporting and verification of impact: Implications for sustainability: A commentary on Adams et al. (2023) “Styles of verification and the pursuit of organisational repair: The case of social impact.” Accounting, Organizations and Society, 113, Article 101540. https://doi.org/10.1016/j.aos.2023.101540
  17. Noble, E., Moinul, D., Khairy Djim Sylla, O., Friedmann, S., Amick, K., Rowhani, N., Dua, R., Mannan, N., Seaman, C., Ayo, O., Pant, S., Osoko, O., Gogineni, S., Malburg, C., Dickey, C., & Peprah, E. (2025). Downward accountability mechanism effectiveness by non-governmental organizations in low- and middle-income countries: A qualitative systematic review. PLOS ONE, 20(5), Article e0324098. https://doi.org/10.1371/journal.pone.0324098
  18. Permatasari, P., Ilman, A. S., Tilt, C. A., Lestari, D., Islam, S., Tenrini, R. H., Rahman, A. B., Samosir, A. P., & Wardhana, I. W. (2021). The Village Fund Program in Indonesia: Measuring the effectiveness and alignment to Sustainable Development Goals. Sustainability, 13(21), Article 12294. https://doi.org/10.3390/su132112294
  19. Rahman, M. (2023). Downward accountability of NGOs in Bangladesh: Theoretical issues and empirical investigation. Journal of Developing Societies, 39(3), 347–372. https://doi.org/10.1177/0169796X231183893
  20. Sriyono, Soeprapto, A., & Nugroho, S. P. (2023). Accounting for community welfare: Uncovering the limitations of BUMDes governance in Indonesia. In Proceedings of the International Conference on Advance Research in Social and Economic Science (ICARSE 2022) (pp. 47–55). Atlantis Press. https://doi.org/10.2991/978-2-38476-048-0_6
  21. Tobing-David, V. E., Adi, I. R., & Nuryana, M. (2024). Conditions of sustainable welfare: A cross-case empirical analysis of 22 locality-based welfare systems in decentralised Indonesia. Sustainability, 16(4), Article 1629. https://doi.org/10.3390/su16041629
  22. Urquía-Grande, E., Pérez-Estébanez, R., & Alcaraz-Quiles, F. J. (2022). Impact of non-profit organizations’ accountability: Empirical evidence from the Democratic Republic of Congo. World Development Perspectives, 28, Article 100462. https://doi.org/10.1016/j.wdp.2022.100462
  23. Utomo, U. W., Sudrajat, & Dewi, F. G. (2022). The effect of village fund management accountability and village policy on community welfare. Arkus, 8(1), 210–221. https://doi.org/10.37275/arkus.v8i1.173
  24. World Bank. (n.d.). Community and local development.
  25. World Bank. (2020). Indonesian village governance under the new Village Law (2015–2018): Sentinel villages report (Report No. AUS0001377). Social Development Unit.
  26. Yuhertiana, I., Indah Kirana, N. W., Hardjatie, S., Tannar, O., Wati, S. F. A., Edo, K., & Suryaningrum, D. H. (2025). Enhancing accountability and governance in local communities through ISAK 335 financial systems. Engagement: Jurnal Pengabdian kepada Masyarakat, 9(2), 584–607. https://doi.org/10.29062/engagement.v9i2.1978

Similar Articles

1 2 3 4 5 6 7 > >> 

You may also start an advanced similarity search for this article.