Public and semi-public sector governance is more than simply complying with rules and procedures – it requires awareness of the social playing field in which the organisation operates. It also involves striking a balance between public responsibility and corporate efficiency, as well as between autonomy and supervision (both internal and external). In that regard, it is important to be clear about the regulatory context of operations, the most appropriate governance structure and the structure’s effectiveness. Another key aspect to consider is whether the organisation is sufficiently prepared to respond to any crisis situations.
Sector-specific legislation and social norms
Public and semi-public institutions often operate under sector-specific laws and regulations, for example in healthcare, housing, education and telecommunications. In addition to specific statutory frameworks, industry guidelines and governance codes also define formal governance structures.
Stakeholder management is increasingly central to an organisation’s strategic policy and governance, partly driven by sector-specific rules. The policy must not only meet legal standards, but also be transparent and easily explainable to supervisory authorities, public bodies and the organisation’s target audience. Stakeholdermanagement is essential in that respect.
Crisis- en reputatiemanagement in een publieke context
A good reputation is crucial and determines how stakeholders perceive an organisation. Active director and supervisory involvement in the organisation’s reputation is therefore decisive. Crises at a public or semi-public organisation – such as boardroom disputes, legislative amendments jeopardising continuity, or negative publicity – can have major reputational consequences (in addition to potential directors‘ liability), especially if the organisation responds inadequately. Directors and supervisors should have internal tools and procedures to take effective action when the organisation’s reputation comes under pressure or when such pressure appears imminent.
Houthoff has extensive experience advising public and semi-public institutions. Our Governance Team supports management and supervisory boards from various sectors in navigating the complex sector-specific statutory frameworks. Experienced in boardroom level reputation and crisis management, Houthoff can perform a governance stress test to measure an organisation’s resilience in crisis situations.
