Transport for LondonCorporate governance
TfL's Corporate Governance Code of Conduct addresses each of these by setting out a series of undertakings that TfL has committed itself to deliver.
The fundamental principles of corporate governance
- Openness
- Inclusivity
- Integrity
- Accountability
- Effectiveness
The five interlocking dimensions of corporate governance
- Public focus
- Structures and processes
- Risk management and internal control
- Service delivery arrangements
- Standards of conduct
Public focus
- TfL will publish, publicise and make generally available an annual report on or before 31 December, presenting an objective and understandable account of its activities and achievements and its financial position and performance
- TfL will publish, publicise and make generally available an annual report on or before 30 June, setting out an objective and understandable account and assessment of its current performance on service delivery and its plans to maintain and improve service quality TfL will co-operate with appropriate organisations to ensure there is independent scrutiny of its financial and operational reporting processes
- TfL will have in place proper arrangements designed to encourage individuals and groups from all sections of the community to engage with, contribute to and participate in the work of TfL. TfL will implement appropriate monitoring procedures to ensure the arrangements continue to work in practise
- TfL will have in place proper arrangements to enable a complaint regarding any aspect of TfL's activities to be easily lodged, and to ensure that it is properly addressed
- TfL will establish appropriate relationships with interest groups such as financial institutions, businesses, voluntary groups etc to ensure they are able to interact with TfL on matters of mutual interest
- TfL will conduct its business on an open basis, subject only to the requirements of appropriate levels of individual and commercial confidentiality
- TfL will seek to provide safe, integrated, efficient and economic transport facilities that are in tune with the priorities of the public, commerce, the voluntary and public sectors etc, established through consultation
Structures and processes
The relationships between the corporate centre and the business units, and between the business units will be on an equitable basis:
- There will be corporate ownership of policy decisions
- The roles and responsibilities of board members will be clearly documented
- The roles and responsibilities of managers will be clearly documented
- The TfL Board will meet on a regular basis with meetings open to the public except where reasons of commercial or individual confidentiality require a meeting to be closed
TfL will ensure appropriate processes are in place to set its strategic direction:
- TfL will ensure it has a documented scheme of delegation that reserves appropriate responsibilities to the Board and provides managers with the powers necessary to conduct routine business
- TfL will ensure that all activities are fully documented, appropriately authorised and carried on in a planned manner
- TfL will ensure a senior manager is made responsible for all aspects of operational management
- TfL will ensure that a senior manager is made responsible for ensuring that appropriate advice is given in all financial matters, for keeping proper financial records and accounts and for maintaining an effective system of internal financial control
- TfL will maintain proper records to ensure that the annual accounts show a true and fair view and that expenditure has been properly authorised and allocated in an appropriate manner
Risk management and internal control
TfL will maintain robust systems for identifying and evaluating all significant risks:
- TfL will maintain an effective risk management system, including systems of internal control and an internal audit function
- TfL will ensure that risk management systems, including systems of internal control and internal audit, are reviewed under TfL's performance management system
- TfL will ensure that its Board members are provided with the necessary training to perform their roles
- TfL will ensure that its staff are competent to perform their roles
- TfL will maintain an objective and professional relationship with its external auditors and statutory inspectors
- TfL's annual report will contain an objective and understandable statement and assessment of its risk management system, including systems of internal control and internal audit and their effectiveness in practice
Service delivery arrangements
- TfL will ensure it has a management structure that delivers safe, efficient, effective and economic services
- TfL will maximise its resources and allocate them according to priorities
- TfL will set targets for performance in the delivery of services on a sustainable basis
- TfL will set targets for performance in the delivery of services to ensure equality for both staff and customers
- TfL will have in place sound systems for providing management information for performance measurement purposes
TfL will monitor and report performance against agreed standards and have comprehensive and understandable performance plans in place:
- TfL will foster effective delivery relationships and partnerships with other public sector agencies, the private and voluntary sectors
Standards of conduct
- TfL will have in place formal codes of conduct which define the standards of personal behaviour to which individual Board members, staff and agents of TfL are required to subscribe
- TfL will have in place appropriate systems and processes to ensure that all codes of conduct are complied with
- TfL will have in place arrangements and mechanisms to ensure that all codes of conduct continue to operate in practice, to ensure that Board members and employees are not influenced by prejudice, bias or conflicts of interest in dealing with different stakeholders
- TfL's operational procedures will be designed in conformity with appropriate ethical standards
- TfL will have in place arrangements for whistle-blowing that are accessible to all staff and contractors
