Building Governance on Trust, Transparency, and Relationships
Governance isn’t just about policies and oversight—it’s about relationships. Trust, transparency, and accountability are what make governance structures truly effective. But building and sustaining trust in a boardroom setting—where meetings are infrequent and leadership changes happen—can be challenging.
In this short video, I share reflections on the role of relational accountability in governance, the importance of trust between board members and leadership, and how to strengthen key governance relationships—especially between the Chief Staff Officer and the Chief Elected Officer.
📖 Watch the video and explore the full blog post below to dive deeper into trust-building in governance.
Over the past month, we have focused on authenticity in leadership and communications, taking a people-first approach with our teams, boards, and stakeholders. This week, let’s extend that concept to governance. Typically, when we think of governance, it looks something like this: “Governance encompasses the system by which an organization is controlled and operates, and the mechanisms by which it, and its people, are held to account. Ethics, risk management, compliance, and administration are all elements of governance” (Governance Institute of Australia).
While these elements provide a structural foundation for governance, they don’t tell the whole story. Governance is not just about rules and processes—it is about relationships, trust, and shared accountability. The Organization for Economic Co-operation and Development (OECD) takes this a step further, stating that “…governance guides how a company is directed and its relationships with its…stakeholders. With the right structure and systems in place, good…governance enables companies to create an environment of trust, transparency, and accountability…” (OECD).
Following this thread, we can surmise that while processes and structures need to be in place, trust, transparency, and accountability are necessary for governance structures to be successful. Those pillars cannot be built without relational leadership. Nonprofit boards and leadership teams must intentionally foster relationships (and through them, trust and transparency) to ensure strong, mission-driven organizations.
In this post, we explore how relational accountability (creating and maintaining respectful, trusting relationships) should be a guiding principle in governance.
Why Trust and Transparency Matter in Governance
Governance isn’t just about policies and oversight—it’s about relationships. The effectiveness of a board or leadership team depends on the trust built between its members, staff, and stakeholders.
Trust fosters engagement – When board members and staff trust one another, they engage more openly, leading to productive discussions and informed decision-making.
Transparency builds credibility – Being clear about decision-making processes, financial stewardship, and strategic direction reassures stakeholders that the organization operates with integrity.
Relational accountability strengthens leadership – Accountability isn’t just about reporting on metrics; it’s about fostering a shared commitment to the mission, values, and ethical leadership.
How to Build a Governance Culture Rooted in Relational Accountability
Relational accountability moves beyond traditional governance models that focus on compliance alone. It emphasizes mutual responsibility, active communication, and shared leadership to create a governance culture prioritizing connection and collective impact.
1. Prioritize Open and Honest Communication
Trust thrives in an environment where information is freely shared and leadership is accessible.
Actionable Steps:
✅ Create structured opportunities for board-staff dialogue.
✅ Establish clear expectations around communication timelines and methods.
✅ Encourage transparency around decision-making and governance policies.
2. Foster a Culture of Constructive Feedback
Accountability shouldn’t feel punitive—it should be a tool for collective growth.
Actionable Steps:
✅ Normalize feedback loops between board members, executive leadership, and key stakeholders.
✅ Implement governance self-assessments to evaluate board effectiveness and areas for improvement.
✅ Encourage open discussions about challenges and opportunities without fear of judgment.
3. Align Governance Policies with Organizational Values
A governance structure should reflect the principles and ethics the organization upholds.
Actionable Steps:
✅ Ensure decision-making frameworks align with the nonprofit’s mission and core values.
✅ Establish ethical guidelines and conflict-of-interest policies to maintain credibility.
✅ Regularly revisit policies to ensure they evolve with the organization’s needs.
4. Model Transparency Through Financial and Strategic Reporting
Nonprofits rely on the trust of stakeholders, members, donors, partners, and communities. Transparent reporting practices reinforce this trust.
Actionable Steps:
✅ Share financial statements and organizational updates in accessible formats.
✅ Provide a clear rationale for major strategic decisions.
✅ Engage stakeholders in discussions about long-term planning and sustainability.
5. Encourage Relationship-Based Leadership
Relational accountability requires leaders to approach governance through a lens of connection and collaboration.
Actionable Steps:
✅ Invest in leadership development opportunities that emphasize ethical governance.
✅ Encourage mentorship and peer learning within the board and leadership teams.
✅ Recognize that governance is about stewardship, not just oversight—leaders should actively contribute to the nonprofit’s culture and success.
Final Thoughts
Governance rooted in trust, transparency, and relational accountability isn’t just about policy—it’s about leadership. When leaders commit to fostering open communication, prioritizing ethical decision-making, and ensuring that governance structures align with organizational values, they create an environment of lasting credibility and resilience.
How does your board or leadership team cultivate trust and transparency? Let’s continue the conversation—Ethica Strategic Solutions is here to help organizations strengthen their governance structures for long-term impact.
