Health Systems in Action: an eHandbook for Leaders and Managers

3. PROMOtiNG GOOD GOVeRNANCe iN PUBLiC AND PRiVAte heALth ORGANizAtiONS 3:13
beneficiaries, and donors, through a process that is transparent, equitable, and appropriate
to the needs of the people the CSO serves.
Good governance in CSOs is not exercised only at the top of the organizational structure;
this function is shared at all organizational levels. Nevertheless, the higher the level in
the organization, the more responsibility people have for maintaining good governance
throughout the organization.
what is the governance structure of civil society
organizations?
There is a growing global awareness that the health problems faced by developing countries
are too serious and pervasive to be addressed by the public sector alone. In a combined
public, nongovernmental, and private-sector approach, CSOs need to be able to manage
large-scale health projects and use donor funds in an effective and transparent way.
The most urgent need is to improve the management and governance of fledgling, small
CSOs, which in some countries make up the vast majority of nongovernmental organizations.
These CSOs often begin as volunteer organizations led by one charismatic person,
perhaps with one or two paid staff. They may spring up in response to a specific social
need and funding opportunity.
If they are to be sustainable, even small CSOs must be legally incorporated with an effective
governance system in place to make sure that they can fulfill their mission and use
their resources effectively and transparently.
This section of the handbook can guide a CSO of any size in setting up systems and
becoming a more structured organization. For a new organization, it offers tools to pave
the road to officially register the organization and establish its governance structure. Once
a CSO has grown beyond the one- or two-person phase, this structure almost always consists
of a board of directors and a management team.
why do csos need boards of directors?
Unlike corporations or businesses whose main purpose is to make a profit for their shareholders
or owners, CSOs are founded to work for the common good. They do not have
direct owners to guide them toward their goals. Instead, a volunteer board of directors is
responsible for seeing that the organization acts in the public interest. The board has the
authority to lead the organization, make decisions, set policies to guarantee the proper use
of funds, provide good services (according to the organization’s mission), treat personnel
fairly, and promote a positive work climate.
the legal structure of civil society organizations
CSOs are formed under the laws and regulations of the country in which they intend to
operate. They need to be registered according to their country’s rules and comply with all
legal regulations. Two legal documents are usually needed to formalize registration and
state the reason for the incorporation of the organization: the articles of incorporation and
the bylaws.
© 2010 MANAGeMeNt SCieNCeS fOR heALth HeAltH SySteMS In ACtIon