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Corporate governance in central government departments: Code of good practice, 2011

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Summary

Corporate governance is the way in which organisations are directed and controlled. Good corporate governance is vital to effective financial and risk management. The corporate governance code draws on best practice in the public, private and charity sectors. The code incorporates the protocol on enhanced departmental boards, which sets out government policy in this area. Significant changes include the requirement for the Secretary of State to chair the departmental board and a board composition that enhances the role of non-executive board members bringing knowledge and  experience from senior positions in large and complex organisations outside government. The code provides for a ‘comply or explain’ approach, whereby a department can depart from the code’s provisions provided the reasons are explained in its annual governance statement accompanying the department’s accounts. The guidance is optional and does not require compliance or explanation. The principles outlined in the code will also prove useful for other parts of central government and they are encouraged to apply arrangements suitably adapted for their organisation. The code and guidance are intended to be living documents and will evolve as practice develops.

Thumbnail image for Corporate governance is the way in which organisations are directed and controlled. Good corporate governance is vital to effective financial and risk management. The corporate governance code draws on best practice in the public, private and charity sectors. The code incorporates the protocol on enhanced departmental boards, which sets out government policy in this area. Significant changes include the requirement for the Secretary of State to chair the departmental board and a board composition that enhances the role of non-executive board members bringing knowledge and  experience from senior positions in large and complex organisations outside government. The code provides for a ‘comply or explain’ approach, whereby a department can depart from the code’s provisions provided the reasons are explained in its annual governance statement accompanying the department’s accounts. The guidance is optional and does not require compliance or explanation. The principles outlined in the code will also prove useful for other parts of central government and they are encouraged to apply arrangements suitably adapted for their organisation. The code and guidance are intended to be living documents and will evolve as practice develops.
Issuer

United Kingdom

Year

2011

Region

Europe

Issuer (type)

HM Treasury; Cabinet Office (Government)

Policy Type

Other sustainability policy

Geographical scope

National

Mandatory or voluntary

Voluntary


Main industries targeted
  • Finance & Insurance
  • Transportation & Warehousing
  • Professional, Scientific, & Technical Services
Restrictiveness

Very Low

Sustainable Development Goals (SDGs)
  • SDG 5: Gender Equality
  • SDG 11: Sustainable Cities and Communities
  • SDG 16: Peace, Justice, and Strong Institutions

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