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SaraKay Smullens

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The Failure of Trusteeship at Penn State

Posted: 01/12/12 02:38 AM ET

The recent events at Penn State and the ongoing uncovering of sexual abuse of hopeful innocents have sickened and saddened. If you live in Pennsylvania, as I do, the tragedies seem endless and terribly close to home -- the violated young children; college students shamed by their university leadership; the firing of a sports legend, now suffering cancer; endless finger pointing coupled by endless confusion about failed leadership.

It was only a matter of time before the public would begin to assess the role of trustees in this horror story and to find them seriously lacking. Most know that trustees hold fiduciary responsibility for the college or university they serve. However, fiduciary responsibility is far more than raising money or writing checks. It involves ethics, morality and responsibility for the welfare and well being of an institution and its community

According to Charles William Golding in Inside the Nonprofit Boardroom: "[A trustee holds] the very existence of the organization in trust for the people who contribute to it and for those who benefit from it. What does 'in trust' mean? It means that you nurture, care for, and protect the entire organization." He further explains: "(There is a) sense of security that comes with knowing that someone is overseeing things. People want to feel that someone is paying attention to what is going on. That's the job of the board...Serving on a board is not about you. It's about doing all you can to help the organization carry out its mission...The ideal situation is when the trustee experiences the intensity of the cause in his or her head, heart, and stomach."

For the past six years I have been a trustee of a small liberal arts college, admittedly a far different community than Penn State. Still, trusteeship is trusteeship, and above all, trustees must feel free to ask questions. When this story first unfolded my reaction was immediate: What did the trustees know about the grand-jury investigation of child-sex-abuse allegations against former assistant football coach Jerry Sandusky, as well as the long standing progression of events leading up to it? If they had been told about this, how were events characterized? What were trustee reactions and recommendations? If they were not told, why?

This week former provost and present university president Rodney Erickson said that although he was not present, the Penn State board was briefed by then President Graham B. Spanier. His explanation will surely lead to more questions about what trustees were actually told. When asked the seriousness of the allegations characterized in the briefing, Erickson responded: "I have no idea, because I was not there."

Ben Novak, a former Penn State alumni (class of 1965) trustee who served from 1988 to 2000, wrote that open discussion in board meetings was nonexistent. In his words published in a three part installment in the Centre Daily Times that he paid for himself: "The simple truth is that it is not simply one bad apple that has brought about the humiliating situation we face. Rather, it is the way the board of trustees has structured the whole governance of the university that has made this scandal not only possible but almost inevitable." According to Novak, the board is controlled by the president and a few rich, connected trustees, and dissent is silenced: "I came onto the board thinking that it was a deliberative body such as one reads about in civic books. It is not."

Most are confused about the role of trustees and their relationship with the president of a college or university. The college or university president is hired by, reports to, and as we recently saw, can be fired by the board. It is the board of trustees that sets policy of a school, with recommendations and significant input by the college president, (and hopefully) his or her staff, faculty, students and members of the community. The president and the staff then carry out the policy on a day to day basis. According to Golding, "When a board becomes a true and solid sounding place for management, and when management has both the courage and the sense to listen, the positive effects can be remarkable on both sides."

When I became a trustee the Association of Governing Boards of Universities and Colleges sent trustees throughout our country a copy of Golding's book, which has a forward by William H. Gates, Sr. (yes, the father of the Bill Gates who is a household word and who has expanded his parents' enormous philanthropic commitments). I cannot help but wonder if President Spanier or his board of trustees read the following: "(The board and the president) should be able to ask any questions, with neither side feeling threatened or intimidated. It doesn't always work that way, but it should." And, "The conduct of all activities by all persons representing the corporation in any way, at any time, must be right and proper."

Author Golding also offers a prescient warning, words spoken by his father-in-law, a Greek immigrant and an American success story: "A corporation is like a fish. It rots from the head first."

 
 
 

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09:55 PM on 01/22/2012
The trustees (and it appears sitting Governor Corbett) failed the children, the University, the alumni, the community and yes, Coach Paterno. If they felt in 2002 that the football program was running amuck they had the responsibility, the right, and the resources to at least look into things. If they looked just a bit they would have found out the sordid Sandusky details.  Instead they failed with a "who me?" sense of responsibility. 

Now who knows how many additional children have been harmed?  

In their rush to try to save their own reputations they chose to become judge, jury and executioner in the way they fired the Coach.  Instead they have left the University with a permanently stained reputation, shattered trust in the community and among many of us alumni, and a legend lies dead, brokenhearted.  Is there any doubt these events played a factor in his death?

It's hard to imagine a greater failure of responsibility than what has occurred at Penn State. The trustees have failed on every level, by any measure, and in ways that were previously unthinkable. They have done so with a pass-the-buck sence of accountability.  Their latest PR roadshow to try to salvage their reputations is nothing short of pathetic.  

But the dye is cast, and the only way The Pennsylvania State University can recover from this disgrace is to totally clean house...starting with every current trustee.
07:47 PM on 01/13/2012
It was interesting, but not surprising, to read that the way the Trustee board was run, and given it's governing rules, unless you were one of the few "power" trustees, in cahoots with the PSU president, a trustee would have no ability to find out the Sandusky info - or be able to do anything if you could. As a PSU alumnus I've gotta think this will change.

And even with the structure giving the president and a few trustees all the power - technically - after a couple losing seasons, when they went to Paterno's house to get the 76 yo to retire, he threw them out. And that was that. The real power was with the guy whose football program brought in over $ 50 M profit. And if he didn't want his program's image hurt by the crimes of his former top assistant, then would just have to make sure it doesn't get out. You'd really hope a restructured Trustee board would have the integrity to stand up to a bully with a money making football program. Some clear lesson learned, tragic evidence of what can happen when you don't.
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SaraKay Smullens
12:18 AM on 01/14/2012
As an alum, this has to be so very painful. Yes, lessons here are prophetic. Thank you for writing.
01:18 PM on 01/13/2012
The problems at Penn State have prompted SaraKay to re-emphasize what Charles William Golding's book on trusteeship stresses: that trustees are not just generous financial donors. That must exert their total "fiduciary responsibility" by participating and overseeing in strategic planning and to be fully informed on all campus issues of note. Only then can they be fufilling their role, and hopefully, avoid the disasterous turn of events that occurred at Penn State. A great article!
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SaraKay Smullens
01:57 PM on 01/13/2012
Thank you, N1512. Being a trustee is a great honor, as well as is an enormous responsibility. Access to information is key to being able to meet this responsibility and protect the institution, in accepting this position, that we have promised to cherish and protect.
01:13 PM on 01/13/2012
The Penn State problem has prompted SaraKay to re-emphasize what Charles William Golding's book tries to stress: that trusteeship requires much more than being a financial donor. It requires one to truly be involved in strategic planning and overseeing all of the major campus issues. It is only possible to carry out this responsibilty, as SaraKay points out, when the trustee is given access to information. A great article!
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11:07 AM on 01/13/2012
PSU is rotten from top to bottom, from BoT to president to the football program to the students who would rather riot than face the truth. There is no excuse for such behavior. Their actions are indefensible.
The smart students transferred over winter break.
07:34 AM on 01/13/2012
Who would want to be trusttee at a university where the football coach was more powerful than the president. Look at the alumni association wanting to bring back Joe Paterno and make him even more powerful.
07:42 PM on 01/12/2012
Nice attempt at taking the high road, but university boards are old boy and girl clubs for rich donors who rubber stamp the decisions of the university president. I warned Penn State about Spanier when he arrived in the president's office, but the warning was obviously ignored. The warning was based on Spanier's behavior during his tenure as provost at Oregon State University. See barryrgreer dot com for detail. It does not surprise me in the least that Spanier is now silent and hiding in his new condo when he needs to still answer a lot of question.
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SaraKay Smullens
01:12 AM on 01/13/2012
I know trustees at various colleges and universities who give tirelessly of their abilities. Not all are wealthy. That said, to be a trustee one is expected to give of oneself to the extent possible --- work and wisdom are exceptionally important contributions. But yes, wealthy board members are usually exceptionally generous. I think you would get a great deal from Charles William Golding's "Inside the Nonprofit Boardroom."
01:02 PM on 01/12/2012
I believe that the BoT has forgotten the part of trust as this article states. Until they do the right thing and resign, there will always be a shadow over Penn State. Great article.
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SaraKay Smullens
04:10 PM on 01/12/2012
Thank you for writing, Nick. The pain of this situation is beyond sad. Some pain is unavoidable, but this surely did not fall in this category. The alum of this extraordinary university are organizing to be heard. I so respect their commitment.
07:07 PM on 01/12/2012
The thing you should look into is the Governor of PA he has a seat on the Penn State BOT and he knew/ was involved in the Grand Jury investigation.
04:15 PM on 01/12/2012
We couldn't agree more, Nick Skias. Penn Staters for Responsible Stewardship is an alum and friends group that is taking matters into its own hands by working to replace at least three Trustees who are alumni-elected in 2012. Three more come up for reelection in 2013 and three more in 2014 for a total of nine. We've been frustrated by the lack of due process in their decision-making to this point and are channeling that frustration to affect positive change. Join us at ps4rs.org.
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SaraKay Smullens
06:04 PM on 01/12/2012
There are many who make up the heart of a college and university. But I see our students and alum as our aorta. What important work you and your colleagues are doing, Maribeth!