ON the invitation of the Brussels-based AssociationWorld Foundation, I recently attended its webinar on “Moving from Governance to Good Governance” together with 37 participants from international and European associations and non-profit organizations. The virtual event was also an occasion to launch its “Good Governance for Associations Initiative” campaign in collaboration with international and European key partners.
The panel discussion centered on what good governance is and its basic principles, why it matters, its challenges and approaches, and the next steps. Panelists included Sarah Verschaeve, a partner at law firm Curia; Mogens Kirkeby, president of the International Sport and Culture Association; Filipe Machado, association expert at public affairs firm Interel; and Kai Troll, CEO of Best Buddies and volunteer President of AssociationWorld.
Below are my takeaways from the session with references culled from various sources on association governance in general and on good governance in particular:
No legal definition, principles-based —Good association governance has no legal definition and is mainly principles-based, revolving around values and ethics, people interactions, and democratic decision-making.
According to the American Society of Association Executives (ASAE), the responsibility for governing an association typically rests with a volunteer board of directors, operating according to a set of bylaws, and working in close collaboration with the organization’s chief executive-led management staff to set strategic direction, provide necessary resources, and make key decisions that the staff then implements to meet members’ needs.
A paper by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) cites that good governance has eight major attributes: participatory, consensus-oriented, accountable, transparent, responsive, effective and efficient, equitable and inclusive, and follows the rule of law.
Mainly concerns Board and management, and the general assembly’s role is somewhat diminished—Most association governance processes and practices focus on the roles of the Board (strategic direction, oversight, policy-setting) and management (execution and day-to-day operations). However, there is a need to also engage the general assembly (members) from where the Board and management get their authority to govern. As such, one consideration could be that elections for the Board be done via online voting of all members, whether at the general assembly meeting or not.
‘No one-size fits all’ approach—Associations vary in size, type, mission, culture, needs and activities. There is no one governance model that can achieve the best results in terms of long-term growth and sustainability. However, transparency, accountability, diversity, equity and inclusion are commonalities and essential elements of good governance.
Antithesis of good governance—The opposite, which is bad governance, will result in loss of confidence and reputation and, consequently, loss of members as building reputation back will almost be insurmountable. Poor governance can also cause all the good works of an association to unravel.
One hour is obviously not enough for the panel and the participants to discuss all aspects of good governance in one session. AssociationWorld will thus continue the conversation all year round through its “Good Governance for Associations Initiative” campaign which is open to all associations to join. If you’re interested, go to: https://mailchi.mp/associationworld/ggfa.
The column contributor, Octavio B. Peralta, is founder & CEO of the Philippine Council of Associations and Association Executives and concurrently, president of the Asia-Pacific Federation of Association Organizations. The views Mr. Peralta expressed herein do not necessarily reflect those of the BusinessMirror’s. E-mail: obp@adfiap.org