Principles of Governance
A. Principles
i. Theory
The literature on governance largely relates to corporations, but the principles of accountability and ethics developed are of general relevance.[703] All institutions are concerned with using their resources to solve conflicts and make decisions.
Governance describes how organisations manage this process. It is concerned with how organisations are directed and controlled and where accountability and responsibility is located within them. Analysis of governance identifies who sets and implements rules, where the power to take action is located and how organisations are structured in order to manage change.ii. Values
Good governance of organisations concerns recognising and complying with legal requirements, meeting organisational aims, making good, timely decisions, using funds effectively and transparently, providing good leadership and treating people fairly and equally.[704] To facilitate good governance the decision-making bodies of an organisation must understand their role, work to achieve the organisational purpose, individually and together, exercise effective control, behave with integrity and be open and accountable.
Governance is directly relevant to ethics. Values such as transparency, accountability and participation are as relevant to the ethics of professional organisations as they are to professional practitioners or firms. It is important for the credibility of the professional organisation as an ethical leader that those working for it behave ethically. Secondly, it is important that an organisation sets an example and builds the trust of the membership. It is damaging if the profession has progressive policies for members, but does not follow them internally. It is unrealistic to expect members to behave ethically if its leadership does not.
iii. Activities
a.
StructuresIn the context of professions, governance refers to the activities of a governing body. In membership organisations, like professions, a governing body may not be full-time. A professional executive, or secretariat, usually operates with delegated powers. This enacts policies and takes action, like publishing documents or issuing press releases, on an everyday basis. Governance is usually managed through policies and processes generated by networks of special interest committees.
b. Role
Traditionally, professional bodies are the main means through which professions develop policy, offer leadership to members and seek to influence public policy. The importance of leadership in sustaining a professional ethic is described by Ravetz:
For the effective enforcement of a professional ethic, it is not necessary that all members of the profession adhere to it with total commitment... But... there must be excellent leadership and good morale. The leadership is necessary to provide definition and application of the professional ethic in constantly changing circumstances; and morale is necessary if this leadership is to be effective. The ordinary members of the profession must respect the leaders according to their criteria of skill and success, and be prepared to accept their guidance and control. Also, they must have some degree of commitment to doing good work, so that a consensus can operate against those who betray the good name of the profession. Otherwise the enforcement of a professional ethic is impossible.[705]
c. Engagement
Small exclusive bodies can more effectively engage and mobilise their membership. Their problem is that they may lack legitimacy and, therefore, influence. A large and inclusive professional group confers a degree of legitimacy on the professional body, allowing it to speak with authority. The more inclusive professional membership becomes, the wider the range of views which must be represented. An organisation with a large membership may have legitimacy but will find it difficult to take effective collective action.
There is more risk with a large and diverse organisation that members pursue sectional advantage at the expense of the higher goals the profession may set itself. Effective leadership and consultation are important because the observance of rules depends on the support of members. This support is easier to achieve when the members share a common purpose and common values and have a lively interest in the development of the profession. Membership of professional bodies and local associations is perhaps indicative. For example, a survey of solicitors found that over 50 per cent of respondents were not involved with the Law Society or their local law societies.[706]
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