19th District Conference of
Rotary International D3870

April 3-5, 2003
Cagayan de Oro City

THE ROLE OF ROTARIANS

IN THE PROMOTION OF GOOD GOVERNANCE

 By:  PDG GUILLER E. TUMANGAN 

       The topic that has been given to me today is new in the sense that the literature on good governance, both in and out of Rotary is rather scarce.  This is not to say that good governance is a novel concept.  On the contrary, it has been there since time immemorial although known perhaps by some other designation.  Put in another way, it is as old as human civilization. 

       Lately, and in the light of corporate scandals that rocked Wall Street, notably the Enron experience and the 1985 Delaware Supreme Court decision in the case of Smith vs. Van Gorkom, corporate governance has become a buzzword that has attracted much attention.  In the context of the Philippines setting, the subject is probably more identified with graft and corruption in government more than anything else in the private sector.  Obviously, this is an area of paramount concern to all of us given the negative effects that the same has brought to our nation, our government and our culture. 

       How then should we go about in discussing this critical subject?  We should perhaps first arrive at a definition of governance.   

       I propose that we agree on the definition that governance is a system by which people, businessmen, government or NGOs are directed and controlled by its leaders, which can be the executives of corporation, ranking government officials and in Rotary Clubs, its Board of Directors, President and key officers. 

       The four fundamental pillars of governance according to the Asian Development Bank are:  accountability (who is to be held accountable for the outcome or lack of), transparency (access to relevant and material information to all stakeholders), predictability (laws and regulations that are clear, known in advance and uniformly and effectively enforced); and participation (check and balances).  The absence of one of these pillars will precipitate the downfall of any organization. 

       For Rotary Clubs, this presupposes that its leadership composed of its President, Board of Directors and membership will lead by example.  It will exercise integrity and good judgments in directing its club and its members.  It will act as a beacon to all its stakeholders who will use their experiences with the Club as a model for its own behavior. 

      Why do Rotary Clubs fail?  The usual suspects are either ineffective leadership, financial mismanagement or lack of membership growth. 

       Leaders fail to get newer members or older members involved in the activities of the club.  Leaders fail to motivate and empower their membership and this creates apathy and disinterest.  Members squabble with one another leading to resignations. 

       Poor budgeting and planning can result in the financial resources of the Club being depleted.  Inaccurate and tardy financial reporting can result in unrealistic targets.   

       The inability of Clubs and their members to infuse their clubs with new blood is the result of their unattractiveness or lack of desire in drawing prospective members to their clubs. 

       If we closely examine these failures, it can be seen that these were probably due to a failure to adhere to one or more of the fundamental principles of governance that we have discussed.  For instance, it happens many times that club funds are depleted and the members are the last to know.  Why is this so?  Because probably of lack of transparency and participation on the part of the members.  Hence, the erosion of the funds were not detected at a stage early enough to prevent its reaching disastrous consequences.  

       In the course of preparing my address today, I tried to find a model of good governance that is closer to home, closer to Rotary.  And it was right there, staring at me:  the “4-way” Test!

       The “4-Way” Test of the things we think, say or do: 

1.                  Is it the truth?

2.                  Is it fair to all concerned?

3.                  Will it bring goodwill and better friendships?

4.                  Will it be beneficial to all concerned? 

       I believe that if Rotarians practice the “4-way” Test faithfully, there will be an assurance that good governance has been exercised in our clubs.  Then and only then, can we venture to the outside world and influence other people in the practice of good governance.  In other words, we must set the example as leaders first. 

       Having heard the theories, what can your district and clubs develop by way of action plans?   

       During the last conference on Rotary concerns, the following action plans were proposed: 

1.          Each club and district should provide training and education on good governance to the community, especially the youth.

2.          Develop and distribute informational materials designed to enhance consciousness of honesty and integrity in public and private organizations.

3.          Each Rotarian must model the way and “walk the talk”.

4.          Rotary Clubs and Districts must not solicit donations from politicians.

5.          Organize Rotarians to participate in various government committees to help forge good governance and effective management of government resources. 

       My friends in Rotary, good governance is an ideal that we should all aspire to promote.  As I said earlier in my address, we are still at an early stage where we are trying to develop the concepts that serve us best.  I hope that my speech today would serve as an eye-opener or the trigger that will initiate a deeper discussion and research on the subject.   

        In our country, the lack of good governance is an issue that is eroding our faith not only in established institutions but in ourselves as well.  Hence, it is imperative that we give this subject our attention.  In fact, NGOs like Rotary and the business community should work together with government to adopt principles and effective practices to fight corruption and to promote transparency and good governance.  Perhaps, it is time that Rotary as an organization, must come up with a position on certain basic issues like good governance.  But there must an adherence to the “4-Way” Test and a set of procedures to follow to ensure consultation and that the position is reflective of the thinking of the entire organization and not just the governor, for instance.  And always bearing in mind the non-political nature of Rotary.  I am convinced that we can do this within the basic framework of Rotary.  Because to simply maintain our silence is not also in conformity with our basic principles as Rotarians.  We now live in the cyber age and Rotary is a hundred years old.  Now is perhaps the best time to make bold changes in the way Rotary deals with the outside world.  Rotary must now take a stand on major issue concerning our country.  We should not be limited to community / humanitarian works or educational assistance.  Advocacy for change of a wrong system in our government is a must.

 I trust that after this conference, we shall all go back to our clubs and on that level initiate an exchange of ideas with the end in view of formulating our own Code of Good Governance.  As Rotarians, we must be role models in this very sensitive aspect of good governance.

        Let me end my address with a quotation that has something to do with good governance:  “Give us men whom the lust of office does not kill; men whom the spoils of office cannot buy; men who posses opinions and a will; men who have honor, men who will not lie.”

           Thank you.