Operating context

Higher education institutions (HEI) need to satisfy a broad range of statutory and requlatory requirements. There is a plethora of legislation applying to HEIs. Some aspects of the law are specific to higher education, while for many areas of activity institutions are subject to the general law of the country. Similarly, regulation of HEIs is extensive and an area where governors will wish to seek assurance that, for example, the institution is meeting its responsibilities in submitting acurrate and timely returns to the various bodies who regulate or oversee the sector.

Personal ethics and values

Personal ethics and values focus on the expected behaviour of members of a governing body. Standards of behaviour are expected to reflect the updated Nolan principles of public life, and members of governing bodies should be mindful of any potential conflicts of interest or loyalty and act at all times in the interests of the organisation. 

Corporate ethics and values

Corporate ethics and values considers the governance of higher education institutions is expected to be conducted to the highest possible standards. The potential impact of changing policies and codes on corporate governance for higher education is noted, as is the possible damage to its reputation should an institution's behaviour fall below the highest standards. 

The environment in which higher education providers operate is constantly changing. A range of external factors, including demographic trends and changes to government policy can have a profound effect on institutional viability. Equally, the interdependent nature of the 'market place' means institutions are affected by the policies and actions of their competitors. For example, when they are seeking to secure the student numbers they plan to recruit, or frequently when competing for external funding. Institutional rivalry in these situations is often intense.