EXPERT COACHING. PRACTICAL RESOURCES.
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BOARD ACCOUNTABILITY

  • The Board is the “link” between the organization and its owners
  • The Board derives its authority from and is accountable to the owners
  • In an equity corporation, the “owners” and the “shareholders” are the same.

WHO ARE THE OWNERS?

  • Owners are a special category of stakeholders on whose behalf the Board holds the organization in trust
  • Owners have the moral authority to determine the purpose of the organization
  • The Board decides on behalf of the owners:
    • what benefits the organization is to produce;
    • who the beneficiaries are; and
    • what the benefits are worth

To hear an explanation of this concept, click here:

The Concept of Owners

EXAMPLE: WHO ARE THE OWNERS OF A PUBLIC SCHOOL DISTRICT?

In a not-for-profit organization, stakeholders can be confused with owners. In the example below, a public school board governs on behalf of the owners. Who do you think the owners are of a public school district?

Stakeholders & Owners
All Stakeholders Owner? Beneficiary? Other?
The Parents No Yes No
The Students No Yes No
The Government No No Yes
The Vendors No No Yes
The Employees No No Yes
A Community College No No Yes
The Public Yes No No