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 ask According 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 of behaviour into practice? Do they put into practice the ‘Nolan’ principles for people in public life?

Principle 4 Take informed, transparent decisions and managing risk Key questions for members to ask Who is responsible for what kinds of decisions in the organisation? Is it easy to find out what decisions have been taken and the reasons for them? Are the decisions based on up-to-date and complete information and good advice? Does the organisation publish a clear annual account of how it makes sure that its policies are put into practice? Is the statement reassuring? Does the organisation publish a clear annual statement on the effectiveness 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 6 Engaging 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 with suggestions for changes?

Corporate Governance Within Ealing Within organisations which spend Ealing’s money