Thursday, 27 August 2009

UK: the Code of Good Governance for the Voluntary and Community Sector - consultation launched

The steering group responsible for the voluntary and community sector's Code of Good Governance is seeking views on a revised version of the Code principles. The group proposes that the Code should contain six high level principles and operate on the 'comply or explain' basis. The group provides this introduction before explaining the six principles:

Good governance is acknowledged to be essential for the success of any organisation and is now more important than ever. Members of boards play a vital role in serving their causes and communities and bring passion and commitment as well as skills and experience to the organisations they lead. They provide long term vision and protect the reputation and values of their organisations. To make a difference a board needs to have proper procedures and policies in place but it also needs to work well as a team and have good relationships within the organisation. The purpose of these principles is to assist board members to enhance their decision making, increase their accountability and enable them to provide strong leadership. This will in turn assist the people and causes their organisations were set up to benefit.

The six high level principles are designed to be universal and applicable to all voluntary and community organisations. It is the practice and procedures which will vary according to the type and size of the organisation. Underlying each principle is the additional principle of equality-that of ensuring equality, diversity and equality of treatment for all sections of the community. We consider that this is fundamental and it is embedded in all the principles.

In the Code we have used the term “the board “to mean the organisation’s governing body. In your organisation it may be called the board (or board of directors or board of governors) the trustees, the management committee or some other name. It is the body with overall responsibility for governing the organisation, overseeing and controlling its management.

A good board will provide good leadership by:

i. Understanding their role.
ii. Ensuring delivery of organisational purpose.
iii. Being effective as individuals and a team.
iv. Exercising control.
v. Behaving with integrity.
vi. Being open and accountable".

A full copy of the so-called "refashioned principles" is available here. Last year a report was published which considered awareness of the Code and its impact; this report has influenced the steering group's work. 

Note: the National Council of Voluntary Organisations publishes guidance (some of which can be viewed free of charge) for those involved in the governance of voluntary and community organisations: see here

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