Transparency and Accountability ⇒ Good Governance
Good governance creates a corruption-free environment where accountability, transparency and equity prevails. Adherence to the practices of good governance increases faith in the ability or willingness of elected officials to carryout their mandate. It increases political stability, foreign/local investment, shares value and rating of companies and increase in stock exchange listing or the ability to sell products and services. All these put together, brings about the desperate need for good governance.
Key principles of good governance include:
- Honesty – Organisations are the sum of their parts. Employees and managers who operate in good faith, with integrity and no conflicts of interest, will underpin the governance cornerstone of honesty and elicit trust from stakeholders.
- Transparency – Decisions made, action taken and how it is reported to stakeholders must be communicated clearly and made easily available for those affected by the organisation.
- Responsiveness – Listening to stakeholders, taking action or reporting transparently should be done within a reasonable time of a request, complaint or concern.
- Management independent of governing bodies – There must be a separation of powers and chain of accountability. Friends and family members, or suspected conflicts of interests cannot overlap between layers of management and directors, boards or senior politicians. Independence ensures better judgement, assessment of risk and optimum performance.
- Rule of law – Institutions must comply with the laws, codes, guidelines and regulations of the nations in which they operate.
- Effectiveness and efficiency – Good governance is also delivering to mandates, meeting the needs of stakeholders, curtailing expenditure, streamlining decision-making and action, and making the best use of available resources.
- Fairness – Good governance entrenches the principle of fairness, and treating stakeholders equally.
- Just – Justice and governance concerns the moral responsibility and integrity of individuals within an organisation and the behaviour of the organisation itself.
- Accountability – Ensuring that public and private institutions, corporations and individuals entrusted with public resources and civil society are held to account, means they are answerable to their stakeholders.