Responding to consultation called by the National Council for Voluntary Organisations (NCVO), the Charity Commission said; ‘As recent events have shown, ensuring that charities live up to their purpose and the public’s high expectations is about more than compliance with minimum legal requirements.’

The NCVO is calling for a voluntary code of conduct, saying: ‘all charities should proactively champion ethical behaviour and reflect their charitable ethos in every activity they undertake, going beyond legal and regulatory requirements’.

The Commission welcomed the suggestion, pointing out that ‘voluntary codes set by the sector should promote higher standards than regulators can expect or require’.

But it adds that the terms of any code need to be carefully reviewed.

‘If the Code is intended to apply to a very broad range of ethical issues, some themes may need to be drawn out more explicitly. For example, where the section on integrity touches on resources, if it is intended to encompass social and ethical investment, it would benefit from clearer statements to that effect,’ said the commission in a statement.

‘We would also welcome stronger statements about moral leadership, and the importance of a proactive approach to inclusion. Risk and risk appetite may also need to be considered. For example, clearly, a good safeguarding culture is needed, and charities must do all they can to prevent abuse or mistreatment. However, we also need to recognise the nature of the environment and risks that many charities operate within.’

It also questioned whether the proposed code was appropriate for all charities and that it might need to take into account the wide range of organisations operating in the sector.

'We note that this Code has been developed through a consultative process involving a range of charities of different sizes and with different purposes. Is NCVO satisfied that it has been sufficiently tested in terms of ease of practical application by this broad range of charities? How will this Code be promoted, implemented and its adoption monitored?

'One minor related point: the definition of a ‘charity’s purpose’ makes reference to ‘the charity’s article of association’. Not all charities are set up with articles of association. This might unintentionally convey the sense that the code is only for certain types of charity.

'We welcome the statement that the Code is complementary to the Charity Governance Code. We would like to see close alignment and mutual support between these two codes, to make it straightforward for charities to follow both. We note the suggestion from the Chair of the Charity Governance Code that, in time, the Charity Governance Code could be developed to encompass the key elements of the Code of Ethics,’ said the Commission.

The NCVO’s draft Code of Ethics is here.

Report by Rob Munro