Governance & Accountability in
the Third Sector
Third Sector Innovation: Sustainability and
Social Impact (ITSSI) Conference
August 17, 2007
Sao Paulo, Brazil
Norman D. Bishara, Assistant Professor of Law & Ethics
Ross School of Business at the University of Michigan
Email: nbishara@umich.edu
Session Outline and Format:
I. Introductions
II. Presentations:

Moderator:


Norm Bishara, Stephen M. Ross School of Business
at the University of Michigan (20-25 Minutes)
Speakers:




Josmar Verillo, Amarribo (20 Minutes)
Ben Powell, Agora Partnership (20 Minutes)
Jesus Garcia, ITS – Instituto de Tecnologia (20 Minutes)
Brief Moderator Wrap-Up (5 Minutes)
III. Discussion (30 Minutes)
IV. Conclusion
N. Bishara
August 17, 2007
I. Introductions
Speakers:
 Josmar Verillo, Amarribo
 Ben Powell, Agora Partnership
 Jesus Garcia, ITS – Instituto de Tecnologia Social
 Moderator:
 Norm Bishara
N. Bishara
August 17, 2007
II. Presentations
 A brief word about my background
 The goal for comments on governance and
accountability
 Big picture: background and trends for NGOs
 Specific example: board of directors
N. Bishara
August 17, 2007
A Model of the Management Structure of a
Nonprofit/NGO
Officers & Staff
Run the day-to-day
operations of the
organization
Board of Directors
- Manage the business of the organization
- Determine the strategy, goals w/in the mission
- Delegate authority to director and staff
- Select and remove staff, and determine
compensation
Constituents
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August 17, 2007
(recipients of services; may also serve as
advisors; broadly conceived)
Big Picture of Governance/Accountability
 World Bank Governance
Matters Report (2007)
 Transparency
International’s Corruption
Perceptions Index (2006);
Corruption & Governance
Measurement Tools in Latin
American countries (2006)
 Trends in Corporate
Governance
 Also, civil society
organization-level
challenges
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August 17, 2007
Trends in NGO Governance & Accountability
 Pressure on NGOs to act more like businesses (social
enterprise and the “marketization” of the third sector)
 positive or negative?
 Changing funding sources and funding environment
 Government, regulator & constituent pressure
 Globalization and rising status of NGOs
 Other (including scandals and IT)
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August 17, 2007
Example: High Performing Board of Directors
 Why boards?
 Accountable to whom?
 Internalize and prioritize principals
 Operating documents and guidelines
 “360 degree” view of stakeholders
 Consider a Code of Ethics
 Goal of functional transparency
 System of reporting and oversight
 Focus on member selection
 Professionalize the process; professionalize the
membership and networking
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August 17, 2007
Conclusion
 Influences and Trends
 fostering governance and accountability
 Benefits
 Drivers of change and sustainability
 Boards and staff systems
 Continual follow-up and review
 Advantage to well-run and accountable organizations
 Next…
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August 17, 2007
As we move into the organizational case studies:
Key Themes/Questions for the Panel
 is there pressure to develop and maintain good governance
and accountability practices (and where is that pressure
coming from)?
 how has your organization evolved with regard to its
accountability and governance structures?
 how do other entity’s management structure and internal
governance influence your goals?
 how do concerns of governance and accountability issues
influence decision-making at your organization?
 Guidance: which experiences with governance and
accountability development have been the most frustrating?
The most rewarding?
N. Bishara
August 17, 2007
Next…
II. Presentations (continued)
 Speakers:
 Josmar Verillo, Amarribo (20 Minutes)
 Ben Powell, Agora Partnership (20 Minutes)
 Jesus Garcia, ITS – Instituto de Tecnologia Social
(20 Minutes)
 Brief Moderator Wrap-Up (5 Minutes)
III. Discussion (30 Minutes)
IV. Conclusion
N. Bishara
August 17, 2007
N. Bishara
August 17, 2007