A NEW voluntary code of corporate governance for Non Governmental Organisations (NGOs) has been published.
Speaking at the launch of the initiative in Dublin yesterday, Minister of State for Overseas Development Peter Power said the “vital ingredient” of an effective operation was that it had the confidence of the people who used it.
If this confidence was dented in any way, it undermined the whole Irish aid process, he remarked.
Mr Power said the code would play “an integral part in the way we are going to move Irish Aid and international development in the years to come.”
He said it was important “that the public who contribute and that the taxpayers who contribute huge sums of money, and increasing sums of money, that they have confidence that that money is being dispensed in an accountable way, and in a way that has proper systems of audit, proper systems of oversight and accountability.”
The new code has been developed by a joint working group from Dóchas, the umbrella body for 39 development aid NGOs, and the Corporate Governance Association of Ireland.
It sets out “best practice” in areas such as board and management procedures, and aims to strengthen the impact and quality of development NGO work, and to enhance stakeholder confidence in the sector.
Helen Keogh, chairwoman of Dóchas, said a subcommittee would be monitoring the progress of the new code over the coming two years.
Dóchas members formally adopted the code at their recent annual general meeting.
Due to the variation in size and stage of development of Dóchas members, a “comply or explain” approach is being adopted in relation to the new code. This means that organisations which adopt it should be able to comply with its main principles, or explain in their annual report why they do not.
However, Dóchas members are not legally required to abide by the code.