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Book Review: Good Governance, Great Strategy
Guide to Good Governance: Not-for-Profit and Charitable Organizations
By Anne Corbett and James M. Mackay (principal authors) and Pamela L. Cross (contributing author)
Reviewed by Neil Seeman
Boards of directors around the world are feeling tired and unloved. More often than not, popular culture ignores the acumen of directors and reserves its accolades for the chief executive officer (CEO). The cult of the CEO’s singular importance to the success of an enterprise persists. When things go well, the CEO is the one on parade at gala award dinners and the one who basks in effusive media coverage. But, and here’s the rub, when events turn sour, journalists and politicians clamour, “Where was the board?” From complete disregard, when troubles come, the board becomes the scapegoat.
As an added insult, directors in the not-for-profit sector are generally unpaid, yet their role bears potentially serious legal implications, including the threat of personal liability should directors fail in their duties. As the Ontario Hospital Association’s new Guide to Good Governance: Not-For-Profit and Charitable Organizations reminds us, directors are held to a “subjective standard of care”: legal-speak meaning that each director must exercise a level of diligence “reasonably expected of a person with their knowledge and experience.” Since board directors at health service facilities and charities across Canada are a highly experienced lot, this means that standards run very high.
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