Ethics and Good Governance

Good governance is an indeterminate term used in international

development literature to describe how public institutions conduct
public affairs and manage public resources. Governance is "the process
of decision-making and the process by which decisions are
implemented (or not implemented)". The term governance can apply
to corporate, international, national, local governance or to the
interactions between other sectors of society.
The concept of "good governance" often emerges as a model to
compare ineffective economies or political bodies with viable
economies and political bodies. The concept centers on the
responsibility of governments and governing bodies to meet the needs
of the masses as opposed to select groups in society. Because
countries often described, as "most successful" are Western liberal
democratic states, concentrated in Europe and the Americas, good
governance standards often measure other state institutions against
these states. Aid organizations and the authorities of developed
countries often will focus the meaning of "good governance" to a set of
requirements that conform to the organization's agenda, making "good
governance" imply many different things in many different contexts.
Moral Value, Ethics and Good Governance Practices
A moral value is a universally accepted ethical principle that governs
the day to day living of life. These principles are important in
maintaining unity, harmony and honour between people. Moral values
are the standards of good and evil, which govern an individuals
behavior and choices. When moral values derive from society and
government they, of necessity, may change as the laws and morals of
the society change.
Ethics concern an individual's moral judgements about right and
wrong. Decisions taken within an organisation may be made by
individuals or groups, but whoever makes them will be influenced by
the culture of the company. The decision to behave ethically is a moral
one; employees must decide what they think is the right course of
action. This may involve rejecting the route that would lead to the
biggest short-term profit.
Ethical behaviour and corporate social responsibility can bring
significant benefits to a business. For example, they may:

attract customers to the firm's products, thereby boosting sales

and profits

make employees want to stay with the business, reduce labour

turnover and therefore increase productivity


attract more employees wanting to work for the business, reduce
recruitment costs and enable the company to get the most talented
employees

attract investors and keep the company's share price high,

thereby protecting the business from takeover.
Unethical behaviour or a lack of corporate social responsibility, by
comparison, may damage a firm's reputation and make it less
appealing to stakeholders. Profits could fall as a result.
The word governance became a common business buzz word
following the headline-making corporate scandals of companies such
as Enron and WorldCom.
The current interpretation of governance requires that the governing
members of an organizationwhether a corporate board of directors or
the partnersestablish policies, continuously monitor their
implementation, and develop systems and processes of accountability
to ensure the organizations stability and prosperity. The cornerstones
of governance are values and ethics.
For example, a practice might adopt the following core value: To treat
each employee, business partner, and the community-at-large with
dignity, honesty, and respect.
The business plan and administrative processes should then be aligned
to ensure that physicians and staff can demonstrate their commitment
to this core value as they perform their daily duties. The partners, as
business leaders, must set the standard and example; staff and other
business partners will follow if they believe the value is consistently
applied.
The second cornerstone of governance is to incorporate ethics in
business practice decisions.
When the most difficult business decisions in a practice are
consistently based on the values and ethics inherent in governance,
however, the practice will almost certainly profit and grow in the long
term. Consistent demonstration of commitment to values and to good
governance practices fosters trustand trust between patients and
physicians is key to growth.
Effective governance practice also encourages stakeholders to identify,
communicate, and recommend solutions related to the changing needs
of the practice. Immediate and short-term needs are addressed in a
timely manner; long-term needs are integrated into the business plan.
According to the UNDP governance can be seen as the exercise
of economic, political and administrative authority to manage a
countrys affairs at all levels. It comprises the mechanisms,
processes and institutions through which citizens and groups articulate
their interests, exercise their legal rights, meet their obligations
and mediate their differences. Good governanceis, among other

things, participatory, transparent and accountable. It is also effective

and equitable, and it promotes the rule of law. It ensures that
political, social and economic priorities are based on broad consensus
in society and that the voices of the poorest and the most vulnerable
are heard in decision- making over the allocation of development
resources.
Characteristics of good governance: 1. Participation
Generally, public involvement includes three elements or pillars:
Public access to information;
Public participation in decision-making processes;
Public access to judicial and administrative redress often termed
access to
justice.
2.
3.
4.
5.
6.
7.
8.
9.

Rule of Law
Transparency
Responsiveness
Consensus Orientation
Equity
Effectiveness and efficiency
Accountability
Strategic Vision

Good governance leads to a number of positive consequences,

including:
People trust your organization
You know where youre going
Your board is connected to your membership and stakeholders
You get good decisions; people value your work
You have the ability to weather crises
Financial stability
Implications of Good Governance
Sustainable development, social cohesion and environmental
management are dependent on governance and efficient public
sector management. Hence, good governance is representative of a
successful public sector reform programme that promotes equity and
sustainable development. A weak governance system compromises
the delivery of services and benefits to those who need them
most; the influence of powerful interest groups biases policies,
programs and spending away from the poor and lack of property
rights, police protection and legal services disadvantages the poor and
inhibits them from securing their homes and other assets and
operating businesses. Poor governance generates and reinforces
and subverts efforts to reduce it, while bad governance acts as a

barrier to economic development to both domestic and foreign

direct investment and this leads to the collapse of the nation state.
Role of Office of Public Sector Reform (OPSR)
The myth surrounding the Office of Public Sector Reform has
permeated the entire public service unchecked for quite some time.
It is assumed that the Office has the power and responsibility to
enforce public sector reform initiatives. But in reality, the role of
the Office of Public Sector Reform is to facilitate the
development, co-ordination and implementation of Public Sector
Reform Initiatives. The Office takes direction from the Political
Directorate Prime Minister, Ministers, Permanent Secretaries and
other such persons. Any initiatives undertaken must be sanctioned
by those in authority. Therefore, in order to ensure the
characteristics of good governance are adhered to and to fully
realize true public sector reform will entail autonomy of the
Office to develop and coordinate reform initiatives. It will also require
the power and support to implement and maintain the initiatives that
are reminiscent of the objectives set, and the annihilation of the
inherent inefficiencies and ineffectiveness plaguing current Public
Sector Departments.
Examples of Public Sector Reform Initiatives Promoting Good
Governance
1. Eliminating Corruption
2. Public Service code of conduct
3. Improving Policy Presentation/Communication
The broad purpose of policy presentation strategies is:
To create and maintain an informed public;
To harness all suitable publicity methods; and
To sound out public opinion on policy changes and service
developments.
4. Roles and Responsibilities
5. Corporatisation
6. Reforming Financial Management
7. Estate Management
8. External Audits
9. Partnership for Development
10. Corporate Missions
11. Performance Indicators
12. Capacity-Building
13. Efficiency Audits
14. Performance Appraisal
15. Information and communication technology (ICT