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Why the Emphasis on Governance?
Governance deals with the structures and processes by which an organization is directed,
controlled and held to account. Proper governance provides the means to help an organization
achieve its goals and objectives.
The achievement of good governance is important for every public sector organization, including ministries, Crown agencies, health authorities and school boards, among others. Many of government’s programs and services also cut across organizational or jurisdictional boundaries and if they are to be delivered in a seamless way then good governance needs to be in place.
The principles and ideas discussed here apply to cross-government initiatives as much as to
individual public sector organizations. You may also wish to read our brochure for an overview
of public sector governance principles.
“Government agrees that good governance is essential to the success of organizations, regardless of whether they are in the public, private or not-for-profit sectors.”
Government of BC response to the Office of the Auditor General of British Columbia report,
“Public Sector Governance: A Guide to the Principles of Good Practice”

Where Should We Start?
Good governance is underpinned by five core principles. An organization that uses
good governance is one that always, in word and action, demonstrates: accountability;
leadership; integrity; stewardship; and transparency (the A.L.I.S.T.).
Tone at the top, commonly referred to in auditing, is used to define a company’s management and board of director’s leadership and their commitment to being honest and ethical. The tone at the top sets forth a company’s cultural environment and corporate values
How Can These Principles Be Put Into practice:
“Regardless of organizational type, corporate governance regimes are unlikely to be
effective where there is a lack of clarity about the participants involved, their relationships with each other and their respective responsibilities.”
Board Resourcing and Development Office of British Columbia,
Best Practice Guidelines, The elements that constitute good public sector governance, and upon which practices can be modelled, can be demonstrated as the components of a house, Click on sections of the house to find out more
1) Leadership, ethics and a culture committed to good public sector governance

The implementation, evaluation and improvement of a public sector organization’s
governance structures and processes are the responsibility of leaders, and without such
commitments, there would be no foundation to build on.
2) Stakeholder relationships (internal and external)
Understanding the various roles, accountabilities and needs of each stakeholder group contributes to strong relationships, and supports the success of the three central
components, or “windows”, of the “House of Governance”.
3) Risk management
This provides a public sector organization with the means to understand and address
risks in order to better achieve its objectives.
4) Internal compliance and accountability
An efficient and well-governed public sector organization will ensure that internal
controls and accountabilities are clearly defined and consistent with the organization’s
objectives.
5) Planning and performance monitoring
Governing bodies that review and foster better planning and performance monitoring
will be more effective and relevant.
6) External compliance and accountability
External scrutiny is an integral part of work in the public service and meeting these
accountabilities is one of the measures of success for public sector organizations.
7) Information and decision support
Information management is critical for a public sector organization to meet its
objectives and accountabilities, namely by ensuring that the right information gets to
the appropriate people in a timely manner.
8) Review and evaluation of governance arrangements Ongoing review, evaluation and adjustments of governance arrangements are a key process and this includes the governing body checking its own structures, processes and overall performance.
How Should We Gauge our Progress and Successes?
Good governance requires more than just a checklist approach and it is important that
the following not be seen as an end in itself. The items listed below are a starting point for gauging the state of structures and processes that aid public sector organizations in
achieving good governance and, in turn, obtaining stakeholder confidence.
Select one of the following areas to find out more:
Leadership, Ethics and a Culture Committed
to Good Public Sector Governance
 Leaders have clearly defined mandates and responsibilities as well as the skills,knowledge and available resources to lead effectively.
 A formal code of conduct is adopted by the organization.
 Appropriate structures and processes are in place to ensure the organization is free of influence by prejudice, bias or conflicts of interest.
 Members of the governing body exercise leadership by conducting themselves
in accordance with high standards of behavior, as a role model for others in the organization.
 Good governance flows from a shared ethos or culture, with this being expressed as values and demonstrated in behaviour. Stakeholder Relationships (Internal and
External)
 An active and planned approach is taken to defining and understanding stakeholder relationships so they can be developed and strengthened.
 Appropriate structures and processes are in place to measure and review the quality and effectiveness of service or product delivery to stakeholders (both internal and external).
 Clear channels of communication are established with stakeholders regarding
the organization’s mission, roles, objectives and performance.
 Effective communication is established with stakeholders, including  procedures for both internal and external enquiries and complaints.
 Information in general is shared among key players, politicians, public servants and other stakeholders subject to respecting the confidentiality of personal information and commercial confidences.
 Communication to stakeholders is balanced, understandable, transparent and timely.
 Accountability to stakeholders is promoted by publicizing the identity of the members of the governing body, together with information about how and why they came to be appointed.
 Clear management processes are established and documented.