Establishing a Diverse Board of Directors to Foster Sustainable Development in NGOs
Effective governance is crucial for NGOs, and a diverse board of directors plays a key role in this process. A board with diverse perspectives not only strengthens an NGO's decision-making and strategic direction but also fosters effective leadership, promoting sustainable development.
When recruiting board members, NGOs should consider whether new members align with their vision, mission, and values, as well as their development stage and size, to ensure that the recruited members can make meaningful contributions to the NGO’s goals. A board with diverse perspectives is essential for effective oversight and strategic guidance, enabling the NGO to fulfill its mission.
A board composed of diverse perspectives typically has several characteristics. Firstly, having board members of different ages introduces various viewpoints, enriching discussions and decision-making processes. Younger members can inspire innovative thinking and novel approaches, while experienced members can contribute valuable experience and historical insight. Secondly, gender balance among board members is also very important to ensure a broad range of perspectives is considered during decision-making. The integration of different viewpoints can foster a more dynamic and effective governance structure.
Additionally, incorporating individuals from various socio-economic and cultural backgrounds broadens the board’s experience and insights, which is a crucial for building a diverse board. Diversity enhances the board's ability to tackle complex challenges and adapt to changing environments, thereby increasing the NGO's credibility and helping to attract support from relevant stakeholders, donors, and the community.
The reputation and networks of board members from different backgrounds not only build trust but also open up to new opportunities. By leveraging the networks of board members, NGOs can effectively expand their influence and create a broader social impact.
Here are some international references that illustrate the importance of having a diverse board of directors and how such diversity enhances governance in various aspects, contributing to sustainable development.
- Harvard Law School Forum on Corporate Governance - Diversity, Experience and Effectiveness in Board Composition
- Stanford University - The Four Principles of Purpose-Driven Board Leadership
- NGOFeed - Reputation Management for NGOs: How to do, Reputation Crisis, etc.
Resources
Five event materials have been published on the Project’s website since December 2024 and are as follows:
- Seminar & Sharing Session on the Guidance on Data Breach Handling and Data Breach Notifications (Ms. Ayee Man), the Council invited the Ms. Ayee Man, Acting Senior Personal Data Officer (Compliance and Enquiries) from the Office of the Privacy Commissioner for Personal Data, to share insights on preventing and managing data breach incidents. She referenced various cases to demonstrate effective strategies for handling data breaches.
- The Golden Key to Unlock Good Governance: Managing with Equality (Ms. Sandy Lung), the Council invited Ms. Sandy Lung, Senior Training Officer (Policy, Research and Training Division) of the Equal Opportunities Commission, to discuss the Anti-Discrimination Ordinance and support NGOs in fostering good governance for equal opportunities.
- Staying ahead in AML: Adapting to New Scenarios (Ms. Sara Or), the Council conducted a webinar featuring the Partner Ms. Sara Or from Johnson Stokes & Master (JSM), who presented an overview of the Anti-Money Laundering/Counter-Financing of Terrorism Due Diligence Toolkit for Hong Kong NGOs, and highlighted the key updates in the revised edition.
- Induction Training: Adaptive Intelligence – Leadership Hard Skills (Mr. Li Chun Hung, Santos), the Council invited Mr. Li Chun Hung, Santos, Managing Director, Santos C.H. Li CPA Limited, CPA (Practising)), shared effective resource allocation strategies for maximizing impact. The training also aimed to equip participants with essential accounting knowledge to enhance their decision-making capabilities in the boardroom.
- Induction Training: Adaptive Intelligence – Leadership Soft Skills (Dr. Tik Chi Yuen S.B.S, B.B.S, JP), the Council invited Dr. Tik Chi Yuen, S.B.S., B.B.S., JP, Legislative Councillor (Social Welfare)), to discuss the significance of adaptive leadership in diverse environments and to share strategies for staying informed about current affairs to enhance decision-making.
Issue 20 │ March 2025
