What is corporate governance?

A basic definition of corporate governance is:

"The system by which organisations are directed and controlled."

In effect, it is concerned with systems, processes, controls, accountabilities and decision making at the heart of and at the highest level of an organisation. NHS Leicestershire County and Rutland's Standing Orders and Standing Financial Instructions (SOs and SFIs) provide a framework for how the we conduct our business.

Corporate governance is about the way in which senior managers execute their responsibilities and authority and how they account for that authority in relation to those that have entrusted them with assets and resources. In particular it is concerned with the potential abuse of the power and the need for openness, integrity and accountability in the decision-making processes of the organisation.

Effective corporate governance, along with clinical governance, is essential for NHS Leicestershire County and Rutland to achieve clinical, quality and financial objectives. The 'common thread' linking corporate and clinical governance and wider controls assurance is risk management. Risk management is defined as "the culture, processes and structures that are directed towards the effective management of potential opportunities and adverse effects."

The current version of the Corporate Governance Framework can be obtained from Daljit K. Bains, Associate Director of Corporate Governance by email (daljitkaur.bains@leicestercity.nhs.uk) or on (0116) 295 8486.

Annual Audit Letter

The purpose of this letter is to provide a high level summary of the results of the 2010/11 audit work which PricewaterhouseCoopers have undertaken at Leicestershire County and Rutland Primary Care Trust (PCT) that is accessible for the Board and other interested stakeholders. To see a copy of the 2010-11 Annual Audit Letter for NHS Leicestershire County and Rutland, please click this link.

Code of Conduct

Non-executive directors are governed by the Codes of Conduct and Accountability and executive directors by the Code of Conduct for NHS Managers. All members of the board subscribes to the "Seven Principles of Conduct in Public Life" (known as the Nolan Principles):

Selflessness

Holders of public office should take decisions solely in terms of the public interest. They should not do so in order to gain financial or other material benefits for themselves, their family or their friends.

Integrity

Holders of public office should not place themselves under any financial or other obligation to outside individuals or organisations that might influence in the performance of their official duties.

Objectivity

In carrying out public business, including making public appointments, awarding contracts, or recommending individuals for rewards and benefits, holders of public office should make choices on merit.

Accountability

Holders of public office are accountable for their decisions and actions to the public and must submit themselves to whatever scrutiny is appropriate to their office.

Openness

Holders of public office should be as open as possible about all the decisions and actions that they take. They should give reasons for their decisions and restrict information only when the wider public interest clearly demands.

Honesty

Holders of public office have a duty to declare any private interests relating to their public duties and to take steps to resolve any conflicts arising in a way that protects the public interest.