Legislation, policy or decree defines the powers and responsibilities of the board. The powers and responsibilities of the board are clearly delineated from those of the management. There are no areas of ambiguity, dilemma or conflict of interest.

The principle of accountability is at the heart of good governance. At a political level, it means making rulers accountable to the ruled. To enforce accountability, governance structures and mechanisms are needed to enable the principals to hold their chosen trustees legally responsible for their acts and decisions.

The board is the group of persons who, under the legislation or by-laws establishing the entity, is given the responsibility to govern the social security programme and to exercise oversight on its administration. The entity could be a government ministry or department, a statutory body or a private entity.

The 21 guidelines for the board support and promote the following five principles of good governance, as applied to social security institutions:

1. Accountability

2. Transparency

The following guidelines are organized in two parts.

Part A, Good Governance Guidelines for the Board and Management, provides some guidelines for the board and the management of the social security institution. The guidelines are aligned with the five identified good governance principles, including suggestions on governance structures and mechanisms to enable the implementation of the guidelines.

Most mandatory social security programmes are created by legislation, decree or some official act of government, to define the mandate of the institution that is responsible for the implementation of the programme. The mandate often draws a distinction between the “board” and “management”, with the board as the governing and policy-making body of the institution and the management as the body that administers the programme and implements the resolutions of the board.

The concept of governance is understood in many ways by different people. Its definition often depends on the goals to be pursued, the entities involved, and the socio-political environment within which these goals are to be achieved.

The diversity in governance practices around the world is a reflection of differences in the political, social, economic and cultural histories of countries. There is common recognition, however, that good governance is aimed at delivering what is mandated and ensuring that what is delivered is responsive to the evolving needs of the individual and society. Improved education and new technologies have increased the expectations of the public for accountable and transparent administration, including constant improvements in the delivery and performance of social services.

Good governance is central to the effective delivery of social security and is a priority of the International Social Security Association (ISSA), which has the constitutional mandate to promote and develop social security worldwide through technical and administrative improvement.