Definition and Principles of Governance
Corporate governance is the way in which organisations are directed, controlled and led. It defines relationships and the distribution of rights and responsibilities among those who work with and in the organisation, determines the rules and procedures through which the organisation’s objectives are set, and provides the means of attaining those objectives and monitoring performance. Importantly, it defines where accountability lies throughout the organisation.
During July 2011 The Treasury and Cabinet Office published a revised Corporate Governance Code of Good Practice. Although the code is expressly aimed at departments, it is also expected that the principles outlined in the Code will prove useful for other parts of central government and they have been encouraged to apply arrangements that have been suitably adapted to their organisation