The steering group responsible for the code of good governance has launched a consultation on an updated version of it.
The new version of Good Governance: a Code for the Voluntary and Community Sector follows a review by not-for-profit research body nfpSynergy last year, which found that although the code's principles were correct, they needed to be easier to understand and applicable to a wider range of organisations.
Lindsay Driscoll, chair of the steering group, said recent failures in the banking sector had put governance in the spotlight. "It is vital that charities can demonstrate that they are well governed in practice, with arrangements in proportion to their needs, and that the sector has a recognised, effective and proportionate code," she said.
The new code, which can be found in the survey, is broken into six ‘high-level' principles, which are then further explained. The principles state that good boards should:
- understand their role
- ensure delivery of organisational purpose
- be effective as individuals and a team
- exercise control
- behave with integrity
- be open and accountable
The steering group intends to produce a new toolkit and supporting guidance for the revised code when its resources permit. It will also consider a formal accreditation scheme.
The consultation runs for three months.