View source for Code of governance

= What is the Code of Governance? =

The Code of Governance sets out a framework for the effective running of community-led housing organisations such as the ASH Co-op. Community-led housing organisations are united by '''community accountability, democratic control, and local decision-making'''.

Governance is the responsibility of an organisation’s '''Governing Body'''. In the case of the co-op and according to our [[ASH Co-op Rules|Rules]] this is our [[executive committee]].

== What is Good governance? ==

Good governance is about:

* Having a '''clear purpose''' (mission, vision and values)
* Putting the '''right structures and policies''' in place
* Making sure the organisation is '''financially viable'''
* Understanding and managing '''risks'''
* Being '''accountable''' to members, residents and the wider community

Good governance supports both strong values ''and'' effective day-to-day operation.

Having adopted the Code, ASH Co-op is expected to:

* Review their governance '''annually''' against the Code
* Publish a '''statement of compliance''' in their annual report/accounts
* Clearly explain where they do not comply and '''why'''
* Set out plans to achieve compliance where appropriate

= The Five Principles of Governance =

The Code of Governance is about measuring our performance against the following criteria:

* '''Clarity''' – knowing why the organisation exists
* '''Accountability''' – to members and the community
* '''Leadership''' – effective, ethical and informed
* '''Delivery''' – clear roles and responsibilities
* '''Control''' – strong finances, risk management and transparency


== 1. Clarity of Purpose and Values ==

ASH Co-op should:

* Have a '''clear mission, vision and values'''
* Make these publicly available
* Regularly review progress towards them
* Ensure they match the organisation’s legal objects

=== Equality, diversity and inclusion ===

ASH Co-op commits to:

* Fairness and equality of opportunity
* Actively opposing discrimination
* Welcoming diversity
* Setting objectives and reviewing progress
* Reporting publicly on performance

=== Ethics and integrity ===

ASH Co-op should:

* Act with honesty, openness and integrity
* Have clear '''codes of conduct'''
* Be transparent in decision-making
* Manage conflicts of interest properly
* Ensure decisions are taken in the best interests of the organisation and community

== 2. Community Accountability ==

Community-led housing organisations exist to serve a '''defined community''', which may be:

* A geographical area, or
* A specific group of people

=== Membership ===

ASH Co-op should:

* Clearly define who can be a member
* Encourage active membership
* Understand who its community is
* Aim for membership that reflects the diversity of that community

=== Accountability and engagement ===

The organisation should:

* Be accountable to its members and community
* Provide clear information about decisions and performance
* Encourage community involvement in decision-making
* Support members to take on governance roles
* Maintain regular two-way communication

=== Other stakeholders ===

The organisation should also be accountable to:

* Residents who are not members
* Partner landlords
* Regulators (if a Registered Provider)
* The Charity Commission (if a charity)

== 3. Effective Leadership and Control ==

The Committee should:

* Lead and control the organisation strategically
* Delegate day-to-day operations appropriately
* Have clear terms of reference
* Set strategy, budgets and business plans
* Ensure legal and regulatory compliance
* Oversee risk management
* Safeguard the organisation’s assets and reputation

=== Committee composition ===

Where there is a committee or board, the organisation should:

* Have clear rules about size and appointment
* Ensure members understand their responsibilities
* Use fair and transparent election or recruitment processes
* Maintain a balance of skills, experience and diversity
* Regularly refresh membership

=== Conduct and decision-making ===

Committee members should:

* Act collectively and responsibly
* Avoid conflicts of interest
* Declare interests openly
* Base decisions on good information
* Receive induction, training and support
* Have their performance reviewed annually

== 4. Effective and Clear Delivery ==

The Committee decides '''how the organisation operates day to day''', whether through:

* Volunteers
* Paid staff
* External service providers
* Lease or management arrangements

The co-op should:

* Clearly document roles and responsibilities
* Set limits on delegated authority
* Appraise performance regularly
* Be transparent about pay and fees
* Have appropriate HR arrangements if staff are employed

=== Legal and regulatory responsibilities ===

The Committtee remains responsible for ensuring:

* Compliance with the law
* Health and safety
* Data protection
* Safeguarding (where relevant)
* Equality and diversity obligations

Professional advice should be sought where needed.

== 5. Strong Systems of Control and Audit ==

ASH Co-op should:

* Have clear financial controls and standing orders
* Receive regular financial and management reports
* Maintain appropriate relationships with external auditors
* Review auditor appointments periodically

=== Risk management ===

The Committee should:

* Understand the organisation’s risks
* Set a clear risk appetite
* Put controls in place to manage risk
* Review risks regularly
* Maintain business continuity plans

=== Whistleblowing ===

Appropriate whistleblowing policies should be in place to allow concerns to be raised safely.

== References ==

* Confederation of Co-operative Housing (2021). ''Code of Governance for Community-Led Housing Organisations''.  
  [https://www.cch.coop/wp-content/uploads/2021/05/Code-of-Governance-2021.pdf PDF]