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Governance in other sectors - Coggle Diagram
Governance in other sectors
The recognition that there have been benefits of good corporate governance for the private sector has led to organisations in the public and not-for-profit sectors taking an interest in how they can improve their own governance practices
The UK has taken the route of developing different corporate governance codes and guidelines for different sectors within the economy, although the principles of corporate governance applies to all sectors, the governance challenges are different sector-by-sector so to ensure that the practices deal with the particular challenges different codes or guidelines are applicable
Nolan's seven principles of public life
Selflessness: holders of public officer should take decisions solely in terms of the public interest. They should not do so to gain financial or other material benefits for themselves, their family or their friends
Integrity: Holders of public office should not place themselves under any financial or other obligation to outside individuals or organisations that might influence them in the performance of their duties
Objectivity: In carrying out public business, including making public appointments, awarding contracts or recommending individuals for rewards and benefits, holders of public office should make choices on merit
Accountability: Holders of public office are accountable for their decisions and actions to the public and must submit themsevles
Honesty: Holders of public office have a duty to declare any private interests relating to their public duties and to take steps to resolve any conflicts arising in a way that protects the public interest
Leadership: Holders of public office should promote and support these principles by leadership and example
Openness: Holders of public office should be as open as possible about the decisions and actions that they take. They should give reasons for their decisions and restrict information only when the wider public interest clearly demands
Governance in the not-for-profit sector
The Charities Code was published in 2017
The Code is split into two, providing a set of guidelines and a diagnostic tool for larger charities whose income is over £1m a year and a separate set for charities whose income is less than £1m per year
The Code is made up of principles, outcomes and recommendations under the following seven headings
Organisation purpose
Leadership
Integrity
Decision making, risk and control
Board effectiveness
Diversity
Openness and accountability