Accountability and Good Governance 

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Accountability and Good Governance

Without accountability, corruption flourishes.

FROM: NOV-DEC 2007 ISSUE | BY JOHN WILLIAMS

Good governance, whether in the public or private sector, is always a challenge. While we want and expect people to act with honesty and integrity, in too many cases, self interest, greed, and a lack of respect for the rights of others overcomes the basic obligation to act ethically. How can we ensure that an individual acts in accordance with our basic standards of ethics and probity? The answer is accountability. Accountability is one of the fundamental tenets of effective governance in both the private and public sector.

I like to define accountability as a force beyond one’s control, which causes one to act in a certain way. We conduct our daily lives according to an invisible matrix of accountabilities that are so familiar to us we are virtually unaware of them. We pay our bills on time so we can enjoy good credit, we don’t speed (excessively) for fear of a ticket, we work hard at our jobs to provide for our families, and so on. We behave in certain ways because we fear the consequences – forces beyond our control. And when there aren’t consequences to our actions, we tend to behave differently.

In business, accountability is essential to the bottom line. For this reason we, as accountants, build a matrix of accountabilities to ensure transparency and openness. Double entry book keeping, separation of duties, third party verifications, and audits are all second nature to us. We build checks and balances into every system to ensure mistakes are caught at the earliest opportunity, and to detect serious issues such as fraud and theft. Businesses make these investments in accountability because they recognize the corrosive effects a lack of oversight and accountability can have on their profits and public image.

In government, accountability has become the driving force behind many reforms. The introduction and implementation of the Federal Accountability Act is but one tangible example of this trend. Changes such as reforming the financing of political parties, tightening rules governing lobbying, and strengthening the laws on conflicts of interest are all meant to improve governance and enhance Canadians’ confidence in their elected and public officials.

At times, accountability can be the key to both better business and better government. Sadly, in many countries, the exploitation of natural resources and government corruption are inextricably linked, and the absence of accountability allows corruption to flourish. In response to this problem, the Global Organization of Parliamentarians Against Corruption (GOPAC), an organization which I chair, is working to improve accountability of government by strengthening the role of parliaments in overseeing government. GOPAC is advancing this objective by pushing for the resource revenues of nations to be published as separate line items in public accounts.

While this might seem like a small change, it is an important one; if a parliament doesn’t know how much money is coming in, it can not hold the government accountable for how that money is spent. Because accountability is being demanded now more than ever before by shareholders and citizens, efforts at reform have a real chance at success.

Organizations of all kinds invest significant amounts of time and money to ensure effective oversight of their operations. Why then, do we continue to see high profile examples in which the matrix of accountability has collapsed? Because embracing the concept of accountability is not enough. Good governance requires ongoing vigilance from leaders to ensure effective accountability. Recognizing the problem is easy, solving it is the challenge.

Most people do not like to be held accountable, but it is the foundation upon which effective governance and a prosperous society are built.

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