Governance Accountability in the Third Sector Innovation Sustainability

Governance & Accountability in the 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: l Moderator: ¡ l Norm Bishara, Stephen M. Ross School of Business at the University of Michigan (20 -25 Minutes) Speakers: ¡ ¡ ¡ l 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 l Speakers: ¡ Josmar Verillo, Amarribo ¡ Ben Powell, Agora Partnership ¡ Jesus Garcia, ITS – Instituto de Tecnologia Social l Moderator: ¡ Norm Bishara N. Bishara August 17, 2007

II. Presentations l A brief word about my background l 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 N. Bishara August 17, 2007 (recipients of services; may also serve as advisors; broadly conceived)

Big Picture of Governance/Accountability l World Bank Governance Matters Report (2007) l Transparency International’s Corruption Perceptions Index (2006); Corruption & Governance Measurement Tools in Latin American countries (2006) l Trends in Corporate Governance l Also, civil society organization-level challenges N. Bishara August 17, 2007

Trends in NGO Governance & Accountability l Pressure on NGOs to act more like businesses (social enterprise and the “marketization” of the third sector) ¡ positive or negative? l Changing funding sources and funding environment l Government, regulator & constituent pressure l Globalization and rising status of NGOs l Other (including scandals and IT) N. Bishara August 17, 2007

Example: High Performing Board of Directors l Why boards? l Accountable to whom? l 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 l Focus on member selection ¡ Professionalize the process; professionalize the membership and networking N. Bishara August 17, 2007

Conclusion l Influences and Trends ¡ fostering governance and accountability l Benefits ¡ Drivers of change and sustainability l Boards and staff systems l Continual follow-up and review l Advantage to well-run and accountable organizations l Next… N. Bishara August 17, 2007

As we move into the organizational case studies: Key Themes/Questions for the Panel l is there pressure to develop and maintain good governance and accountability practices (and where is that pressure coming from)? l how has your organization evolved with regard to its accountability and governance structures? l how do other entity’s management structure and internal governance influence your goals? l how do concerns of governance and accountability issues influence decision-making at your organization? l 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) l Speakers: ¡ Josmar Verillo, Amarribo (20 Minutes) ¡ Ben Powell, Agora Partnership (20 Minutes) ¡ Jesus Garcia, ITS – Instituto de Tecnologia Social (20 Minutes) l Brief Moderator Wrap-Up (5 Minutes) III. Discussion (30 Minutes) IV. Conclusion N. Bishara August 17, 2007

N. Bishara August 17, 2007