Public Sector organisations are different to private organisations as there can be a number of different stakeholders involved. For example, they may report and be held accountable to senior civil servants, who run the organisation and oversee its goals. They may also be accountable to the politicians, who these civil servants report to. Ultimately, they are accountable to the electorate, who vote the politicians into office.
Each of these stakeholders may have different expectations for the organisation, which can cause turmoil. There’s also opportunities for bad corporate governance practice to set in.
Let’s look at some features of good corporate governance in government organisations.
1. Clear Purpose
The entity should be clear about its intended purpose, expected outcomes and goals for its users.
2. Clear values
Ethical standards and values should be set for the organisation as a whole and its staff.
3. Clear roles
The functions and roles of the organisation and its staff should be clearly defined.
The organisation should have the capacity and capability to be effective in executing its duties.
Stakeholders should be engaged, and the organisation should be held accountable to them.
6. Risk management
Decision-making should be transparent, and risk should be managed.