Category: Management and leadership

Seven Principles of Trusteeships and NEDs

By Richard Kleiner

02 May 2018

I recently read a very interesting “Best Practice Guide” regarding the role of trustees and NEDs and thought it would be useful to summarise the seven principles which were listed.

This piece particularly struck a chord with me as, in my role as an NED, I have found that certain personal qualities coupled with the ability to provide an objective perspective have been key to engendering trust with board members. Such fundamental principles have proven to be invaluable in my capacity as an NED and in my leadership role within our own firm.

1. Selflessness

Directors / Trustees / Holders of Public Office Directors should act solely in terms of the beneficiaries.

2. Integrity

Directors / Trustees / Holders of Public Office must avoid placing themselves under any obligation to people or organisations that might try to inappropriately influence them in their work. They should not act or take decisions to gain financial or other material benefits for themselves, their family, or their friends. They must declare and resolve any interests and relationships.

3. Objectivity

Directors / Trustees / Holders of Public Office must act and take decisions impartially, fairly and on merit, using the best evidence and without discrimination or bias.

4. Accountability

Directors / Trustees / Holders of Public Office are accountable to the beneficiaries for their decisions and actions and must submit themselves to the scrutiny necessary to ensure this.

5. Openness

Directors / Trustees / Holders of Public Office should act and take decisions in an open and transparent manner.

Information should not be withheld from the beneficiaries unless there are clear and lawful reasons for doing so.

6. Honesty

Directors / Trustees / Holders of Public Office should be truthful.

7. Leadership

Directors / Trustees / Holders of Public Office should exhibit these principles in their own behaviour. They should actively promote and robustly support the principles and be willing to challenge poor behaviour wherever it occurs.

If you would like to discuss how your business could benefit from my NED and/or financial advisory service please do not hesitate to get in touch with me at rkleiner@geraldedelman.com.

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