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Board Governance in Canadian Universities

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  • Y. Lilian Chan
  • A. William Richardson

Abstract

In response to increasing fiscal pressure, Canadian universities have turned towards managerialism, that is, applying managerial tools of business with the objectives of improving operating efficiency, raising the institution's marketability, and generating commercial revenue. In addition to employing the services of professional administrators to enhance the institution's economic performance, universities appear to be switching from a collegial model of shared governance to a corporate model of governance. An objective of this exploratory study is to examine the current state of board governance in Canadian universities. Results of a survey from 133 board members of 28 universities indicate, by and large, that board members seem to have a good understanding of their roles and responsibilities. The boards are involved in setting strategic directions, goals, and objectives, and are making operating and capital resource allocation decisions. They are also monitoring the performance of the university and the president, and are involved in recruiting, succession planning, and determining the president's compensation package. The respondents report that the board committee structure and the support provided to board members allow them to discharge their responsibilities as board members properly. There is, however, room for improvement, especially in the board's participation in defining and reviewing the institution's strategic directions, plans, goals, and objectives, as well as monitoring the performance of the university and senior administrators. Other areas for possible improvement include continuing education on matters within the board's purview as well as providing better information for decision making to board members. Gouvernance des conseils d’administration dans les universités canadiennes Résumé En réponse aux pressions financières croissantes, les universités canadiennes se sont tournées vers le gestionnariat, c'est‐à‐dire le recours aux outils de gestion de l'entreprise pour améliorer l'efficience du fonctionnement des établissements d'enseignement, accroître leur attrait commercial et faire en sorte que leur fonctionnement génère des recettes. En plus de faire appel aux services de gestionnaires professionnels pour améliorer la performance économique des établissements, les universités semblent être passées du modèle collégial de gouvernance commune à celui de la gouvernance d'entreprise. Les auteurs de la présente étude exploratoire visent notamment à analyser la situation actuelle de la gouvernance des conseils d'administration au sein des universités canadiennes. Les résultats d'un sondage réalisé auprès de 133 membres du conseil dans 28 universités révèle que, dans l'ensemble, les membres du conseil semblent posséder une bonne compréhension de leurs rôles et de leurs responsabilités. Les conseils participent à l’établissement des orientations stratégiques, des buts et des objectifs, et ils prennent des décisions en matière de fonctionnement et d'affectation des capitaux. Ils assurent également le suivi de la performance de l'université et de son président, ayant pris part au recrutement de ce dernier, à la planification de la relève et à l’établissement de son régime de rémunération. Les participants au sondage indiquent que la structure des comités relevant du conseil et le soutien qui leur est fourni permettent aux membres du conseil de s'acquitter convenablement de leurs responsabilités. Il y a cependant place à l'amélioration, particulièrement en ce qui a trait à la participation des membres du conseil à la définition et à l'analyse des orientations stratégiques des établissements d'enseignement, de leur plans, de leurs buts et objectifs, ainsi qu'au suivi de la performance de l'université et de ses hauts dirigeants. Parmi les autres domaines susceptibles d'améliorations figurent la formation continue relativement aux questions relevant du conseil d'administration ainsi que la fourniture aux membres du conseil d'une meilleure information aux fins décisionnelles.

Suggested Citation

  • Y. Lilian Chan & A. William Richardson, 2012. "Board Governance in Canadian Universities," Accounting Perspectives, John Wiley & Sons, vol. 11(1), pages 31-55, May.
  • Handle: RePEc:wly:accper:v:11:y:2012:i:1:p:31-55
    DOI: 10.1111/j.1911-3838.2012.00030.x
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    References listed on IDEAS

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    1. William L. Waugh, 1998. "Conflicting Values and Cultures: The Managerial Threat to University Governance," Review of Policy Research, Policy Studies Organization, vol. 15(4), pages 61-74, December.
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    Cited by:

    1. Raquel Garde Sánchez & Jesús Mauricio Flórez-Parra & María Victoria López-Pérez & Antonio Manuel López-Hernández, 2020. "Corporate Governance and Disclosure of Information on Corporate Social Responsibility: An Analysis of the Top 200 Universities in the Shanghai Ranking," Sustainability, MDPI, vol. 12(4), pages 1-22, February.

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