Prudent management dictates that service organization must operate in a structured and systematic way if they are to achieve their objectives. Accountability and transparency are important tenets of good operational practices and effective corporate governance. These are necessary imperatives, particularly for organizations having a fiduciary responsibility to their members.

Policies set a defined course of conduct and provides a continuous framework for permission, practices, procedures and/or systems to guide staff, committee members, volunteers or other authorised personnel. Put another way, the development, implementation and adherence to policies help to guide and standardize the operations of societies. The policies of societies should seek to provide general information and guidance on areas of the societies’ operations, which include but are not limited to employment and human resources, credit and pricing, investment, cash management procedures, chain of command, acquisition of assets, trading, delinquency and provisions for bad debts and accounting. It is expected that full compliance will be obtained from all stakeholders – members, volunteers, employees etc.

The Board of Directors should be regularly reviewed in order to be compliant with industry, economic and social changes that may arise from time to time, within the local jurisdiction and in-keeping with international practices.


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