Trustees Must Trust the Leader: Lessons from the World Bank Controversy

The recent scandal surrounding World Bank President Paul Wolfowitz is more than just a case about questionable ethics.

It’s also illustrates the importance of trust between nonprofit boards and their top executives, writes Mike Burns on Nonprofit Board Crisis.

Mr. Burns writes that even if Mr. Wolfowitz takes steps to correct his behavior moving forward, he may have forever lost the trust of his board of trustees.

And if he can’t win back that trust, he’s essentially doomed, even if he is wildly successful in his other job duties, Mr. Burns writes, citing a recent Chronicle of Higher Education survey that shows trustees at colleges and universities often place trust ahead of performance when analyzing the value of their presidents.

“The next set of actions is focused on whether the (World Bank) board can believe that Wolfowitz will correct what could possibly be a pattern and make all look right in the future,” Mr. Burns writes.

What lessons do you think the World Bank controversy offers to nonprofit organizations? Click on the comments link below this post to share your thoughts.