10 September 2004
Governors of public bodies should take a leading role in scrutinising corporate governance arrangements to ensure they are of the highest standard, independent experts have said.
The Independent Commission on Good Governance in Public Services made the call as it published a draft set of common principles that it wants all public sector organisations to adopt.
The commission, set up by CIPFA in conjunction with the Office for Public Management, says there should be a common governance standard for public services similar to the private sector's Combined Code.
Good governance standards for the public services sets out six principles that it says should underpin the governance arrangements of all bodies.
It calls for: a clear definition of the body's purpose and desired outcomes; well-defined functions and responsibilities; an appropriate corporate culture; transparent decision-making; a strong governance team; and real accountability to stakeholders.
The commission is calling on public bodies to use the code to carry out regular self-assessments of governance arrangements and to publish the results. It says this will help to develop effective improvement plans.
It also hopes that a common standard will help regulators to assess organisations' governance structures, and enable professional bodies to draw up effective codes of practice for members.
Sir Alan Langlands, chair of the commission and former chief executive of the NHS, said it was the first time a common governance standard for the public sector had been attempted. 'We want to bring governance out of the back room and put it into the foreground of the public services,' he added.
'It is therefore critically important that we receive feedback from a wide cross-section of interested stakeholders and practitioners in response to this initial draft.'
Steve Freer, CIPFA's chief executive and secretary to the commission, said a common standard would facilitate closer working between organisations.
'Current governance arrangements can be fragmented and confusing. We see that in partnership working when each individual organisation brings its own distinctive governance code to the table.
'The Independent Commission's Standard will help to provide a more consistent, universal framework.'
The consultation closes on October 29 and responses should be e-mailed to [email protected] or posted to Steve Freer at CIPFA.
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