The Governance Institute of Australia has launched an updated report on public sector governance, focusing on recent issues that erode trust within the sector. 

In the “Governance principles for boards of public sector entities in Australia Guide 2023” report, the association reflects on the recent changes in public sector workplace culture and behaviour. 

“The public sector governance context is rapidly changing,” Governance Institute Chief Executive Megan Motto said in the foreword. 

“Since this guide was first published in 2016, we saw a resurgence of political populism and increasing political polarisation. Trust in public institutions the world over, including Australia, remains low and may continue to decline unless we arrest the trend.” 

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The report also mentions the rise in issues of workplace sexual harassment and assault and the increasing pressure on governments to address the most pressing social and economic issues such as climate change and the ethical implications of digital technology. 

In light of these recent issues, the Governance Institute’s report focuses on balancing public interest as a foundation of good governance to assist boards and governance professionals of public sector entities in understanding and achieving good governance. 

“We have adapted the guide to reflect changing best practices on governance, including expanded sections on workplace and organisation-wide culture and behavioural dynamics in the boardroom,” Motto said. 

“The thinking of our members on culture has progressed and widened in scope, to reflect increasing cross-sector awareness that culture is often the determining influence on conduct at all levels of an organisation.” 

The report’s foreword explicitly recommends that public sector entities take stakeholder views into account in major decisions and that they adopt a pro-disclosure culture, in recognition of increasing expectations of stakeholders for a more transparent and accountable government.  

“It is increasingly recognised that civic engagement and collaborative and participatory government drive better outcomes for the community,” it said. 

It is also recommended that boards specifically address environmental and social risks and ensure their entities are prepared for the ever-increasing threat of data and cybersecurity breaches. 

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As a recognition of the important work of the ASX Corporate Governance Council as well as the Governance Institute’s belief in the value of cross-sector knowledge sharing, the report aligns itself with the fourth edition of the “ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations (Corporate Governance Principles and Recommendations)”. 

Download and use the updated report as a practical tool to understand and achieve good governance.