Governance and the Nolan Principles

Governance and the Nolan Principles

Governance of a voluntary organise includes:

·  Creating a clear, shared vision

·  Creating the framework to enable achievement of the organisation’s objectives

·  Creating and maintaining enthusiasm about the vision

·  Recruiting and supervising the senior manager/chief executive officer

·  Working within budget

·  Compliance with policy, regulators and the law

Governance describes the structures, functions, processes and organisational traditions that have been put in place to ensure that the organisation is run in such a way that it achieves its objectives in an effective and transparent manner. Governance involves setting the strategic direction and directing the activities of senior managers. Governance isn’t management. Management is the day-to-day operation of the organisation within the context of the strategies, policies, processes and procedures that have been established by the directors.

Lord Nolan, while chairing the Committee on Standards in Public Life in the 19902 set out what are now commonly called the Nolan principles. They have been widely adopted across the voluntary sector. The 7 principles are:

·  Selflessness

·  Integrity

·  Objectivity

·  Accountability

·  Openness

·  Honesty

·  Leadership

The Governance Hub published Good Governance: A code for the voluntary and community sector in 2005. Drawing on the Nolan principles this code identified 7 principles of good governance:

·  Board Leadership

·  The board in control

·  High performance board

·  Board review and renewal

·  Board delegation

·  Board and trustee integrity

·  Board openness

The Office of the Scottish Charity Regulator (OSCR) published in 2006 Guidance for Charity Trustees: Acting with due care and diligence.

The guide was written to help trustees of charities to know what was expected of them. It identified four core responsibilities:

·  to act in the interest of the charity;

·  to operate in a manner consistent with the charity’s purpose

·  to act with due care and diligence: and to ensure that the charity complies with the provisions of relevant legislation.

OSCR Easy Read Guide is included in your pack.

The full guide can be downloaded from OSCR website.

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