Evaluating Performance and Improving Effectiveness
Code of Good Governance
http://www.governancehub.org.uk/code_of_governance.html
Produced by ACEVO, Charity Trustee Networks, ICSA, NCVO on behalf of The National Hub of Expertise in Governance and aimed at the trustees and Chief Executives of voluntary and community organisations, as well as to a wider audience, the Code sets out a series of principles as a framework to encourage best practice.
“The Code of Good Governance for the VCS (third sector)… is designed for all those involved in the governance of voluntary and community sector organisations, and particularly for trustees and chief executives… [it] is intended to be concise, user friendly, and universally applicable…
“Adopting good practice can help charities keep pace with the changes and make them more effective where it really counts – in helping the people they were set up to benefit… It has been produced by the sector, from the sector and for the sector. The code provides a flexible and proportionate framework for charities; there are common standards to which all charities should aspire, with higher expectations of larger charities.” – from the Introduction.
The key principles of good governance:
Board leadership - Every organisation should be led and controlled by an effective Board of trustees which collectively ensures delivery of its objects, sets its strategic direction and upholds its values.
The Board in control - The trustees as a Board should collectively be responsible and accountable for ensuring and monitoring that the organisation is performing well, is solvent, and complies with all its obligations.
The high performance Board - The Board should have clear responsibilities and functions, and should compose and organise itself to discharge them effectively.
Board review and renewal - The Board should periodically review its own and the organisation’s effectiveness, and take any necessary steps to ensure that both continue to work well.
Board delegation - The Board should set out the functions of sub-committees, officers, the chief executive, other staff and agents in clear delegated authorities, and should monitor their performance.
Board and trustee integrity - The Board and individual trustees should act according to high ethical standards, and ensure that conflicts of interest are properly dealt with.
The open Board - The Board should be open, responsive and accountable to its users, beneficiaries, members, partners and others with an interest in its work.
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