What Enron’s Fall Teaches Trustees

To the Editor:

Henry Goldstein’s thoughtful article on lessons from Enron’s downfall (“Enron’s Downfall Offers Many Lessons for Charities,” February 7) makes the case that governance counts; that charity boards must set the tone and serve as stewards of the funds and other assets entrusted to them. Then he surprisingly concludes his article blessing a quote from a nonprofit leader who said, “We are staff-led, and board-advised.”

Nonprofit governance is a complex issue, involving volunteer board members working closely with paid professional staff members who usually know more about the technical issues at hand than does the board. Still, I believe strongly that the board is abdicating its fiduciary responsibility when it perceives its role as advisory. The board’s role is to establish the ends, then measure the staff’s progress toward achieving those ends. Of course, providing advice along the way is fine, but not the board’s primary duty.

Perhaps the most common weakness I have observed over many years working with not-for-profits is board confusion over ends versus means, and whose job it is to do which.

John Brame Witmer
Vice President
Marshall & Ilsley Trust Company
Las Vegas

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To the Editor:

A host of kudos and more kudos to Henry Goldstein for his commentary on the questionable ethics of Enron’s officers and board of directors. His penetrating observations should be taken very, very seriously by every leader, officer, and trustee affiliated with the nonprofit world.

Winking at little shades of impropriety usually leads to more extensive infractions of what is and what is not ethical. Every one of us must be sure we can stand clean as a hound’s tooth. Whether we are at the top or bottom of the organizational chart, our stand for what is right and truthful has an influence.

America has every right to expect people working in the lofty and noble work of philanthropy to be faultless. If that is beyond reality in our society, we should at least be fully committed to be honest, truthful, and selfless in the work that aims for the stars in helping others. Education, health care, religion, social services, and cultural matters all deserve our integrity and purposeful leadership.

Milton Murray
Silver Spring, Md.