14 January 2005
All public bodies should adopt the new code of governance for Britain's public services to clear up confusion over responsibilities, independent experts have said.
The Commission on Good Governance in Public Services has published a six-point standard in an effort to address the 'urgent need' for more clarity about what is expected of the governors of public bodies.
The commission, set up by CIPFA in conjunction with the Office for Public Management and the Joseph Rowntree Foundation, found 'clear evidence' that many experienced difficulties fulfilling their responsibilities.
Its chair, former NHS chief executive Sir Alan Langlands, said the code was needed to bring public services into line with the private sector, which has a well-established governance standard.
'A lot of governors do not feel clear and confident about their contribution,' he said at the launch on January 11.
The commission estimated that more than 450,000 people serve on the governing bodies of public service organisations and charities. It said the UK had the highest proportion of appointed rather than elected governors of any Western country, making it especially important that they performed their duties effectively.
Under the standard, organisations are expected to set out in a public document their approach to governance, including specifying the role of the board as distinct from that of the executive officers.
All public bodies are being urged to adopt the code. The commission said there should now be 'moral pressure' for organisations to do so, but they should not be forced to comply.
However, Langlands said his expectation was that regulators, such as the Audit Commission and the Housing Corporation, would in future 'take account' of whether an organisation adhered to the code.
The new standard has been widely endorsed by public figures. Tony Wright, chair of the Commons' public administration select committee, said it was an 'excellent initiative' that met a real need.
The six principles of good governance
- Focusing on the organisation's purpose and outcomes for users
- Performing effectively in clearly defined functions and roles
- Promoting values for the whole organisation and demonstrating those values through behaviour
- Taking informed, transparent decisions and managing risk
- Developing the capacity and capability of the governing body to be effective
- Engaging stakeholders and making accountability real
PFjan2005
