Corporate Governance

July 2005

Corporate Governance

What is corporate governance

Why is it important

Who is responsible

Guidance

Guidance is available on:•What is corporate governance•Why is it important•Who is responsible and what are they

responsible for

Guidance on member responsibility•Good Governance Standards for Public Service

Member Responsibility

Fulfilling member responsibility

Good Governance Standards for Public Service– Six core principles for good

governance within public service organisations

Principle 1

Focus on overall purpose, outcomes for citizens and service users; and operations that are effective, efficient and ethical

Key questions for members to ask

What is the council about?

Is it easy to find a clear explanation of what the council is doing?

Is it easy to find out about the quality of service provided to the public?

What is being done to improve services?

Is it easy to find out about the council’s funding and how it spends its money?

Principle 2

Perform effectively in clearly defined functions and roles

Key questions for members to ask

Who is in charge of the organisation?How are they elected or appointed?At the top of the organisation, who is responsible for what?

Principle 3

Promote values for the council and demonstrating the value of good governance

through behaviour

Key questions for members to askAccording to the organisation, what values guide its work?Does it follow these values in practice?What are the expected standards of behaviour?Do the senior people in the organisation put these standards ofbehaviour into practice?Do they put into practice the ‘Nolan’ principles for people in public life?

Principle 4Take informed, transparent decisions and managing

risk

Key questions for members to askWho is responsible for what kinds of decisions in the organisation? Is it easy to find out what decisions have been taken and the reasons forthem?Are the decisions based on up-to-date and complete information andgood advice?Does the organisation publish a clear annual account of how it makessure that its policies are put into practice? Is the statement reassuring?Does the organisation publish a clear annual statement on theeffectiveness of its risk management system?

Principle 5

Developing the capacity and capability of the governing body to be effective

Key questions for members to ask

How does the council encourage people to get involved in running it?What support does it provide for people who do get involved?How does the organisation make sure that all those running the organisation are doing a good job?

Principle 6Engaging stakeholders and making

accountability real

Key questions for members to ask

Is information to answer key questions readily available?

Are there opportunities for people to make our views known?

Are copies freely available of the Council’s annual report containing its accounts? Is the content informative?Is it easy to determine what decisions were taken as a result of opinions being asked for?

Are there opportunities to question the people in charge about their

plans and decisions?

Is it easy to find out how to complain and who to contact withsuggestions for changes?

Corporate Governance

Within Ealing

Within organisations which spend Ealing’s money