Changes to the Charity Governance Code: Diversity

The Code’s six fundamental principles support the overarching principle of Organisational purpose – the charitable purpose of the organisation. Within each principle, the Code outlines tangible examples of recommended practice, and this is the most helpful aspect of the model.

Seen as a whole, the Code is a “stretch target” for trustees. But it is intended to be a practical tool and accepts that trustees need to prioritise and tailor their activities accordingly.

Changes to the EDI Principle

Previously, the Diversity principle was relatively light on specifics, with a focus on protected characteristics that made it feel more like an issue of risk management. But the leap we all need to make is from seeing diversity as a “hygiene factor” to one of diversity as a “success factor”. The new EDI principle helps trustees do this.

The rationale

The new rationale sets out the value of EDI clearly. Here are some phrases I think are particularly good:

• “Addressing equality, diversity and inclusion helps a board to make better decisions.”
• “Recognising and countering any imbalances in power… in the attitudes and behaviour of trustees, staff and volunteers, help to make sure that a charity achieves its aims.”
• “All trustees… must have equality of opportunity to contribute to decision making.”
• “Board diversity, in the widest sense, is important because it creates more balanced decision making.”
• “Boards that commit to equality, diversity and inclusion are more likely to set a positive example and tone for the charity.”

Recommended practice

The greater detail given in the new Code clearly describes the recommended practice that will strengthen how trustees tackle EDI successfully. Some key points:

• There is a requirement to articulate how EDI relates to the purpose of the charity. This is important: It embeds EDI in the organisation’s strategy and demonstrates its value for beneficiaries.
• There is clarity around needing to plan, monitor and report regularly, seeking challenges, opportunities and new developments, and addressing gaps in understanding at all levels. Reporting needs to be transparent and external.
• Board diversity is central to the Principle. A board that lacks diversity cannot effectively lead diversity.

Next steps

The easiest way to understand the EDI Principle in detail, so you know what it looks like in practice, is to review it on the Charity Governance Code website. However, it is worth recognising that, taken as a whole, the Charity Governance Code can feel quite daunting to absorb and put into practice. Remember, it is a “stretch target” and trustees will need to prioritise.

Another great way to get to grips with the Code is to use one of many online survey tools. These can facilitate understanding and help trustees see the wood for the trees, and agree on priority needs. Action Planning Partners with Digi-Board^TM to conduct governance health checks, and the tool makes reviewing against the Charity Governance Code easy, with fantastic insights.

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