We often find that boards are searching for a reliable compass to help them navigate the tricky ethical dilemmas that inevitably crop up in leadership roles. While there are many codes of conduct and rulebooks out there, the Nolan Principles remain the gold standard for anyone who wants to lead with integrity. It is quite common for people to think these rules are only for those in the public eye, but the truth is that they are just as vital for a small charity or a large private company.
What are the Nolan Principles?
The Nolan Principles, also known as the Seven Principles of Public Life, were first set out by the Committee on Standards in Public Life in 1995. The committee was chaired by Lord Nolan at a time when there was significant concern about the standards of behaviour in the UK public sector, and it was his job to set things right. Although they were designed for public office holders, they have stood the test of time remarkably well and are now considered the essential building blocks for good governance in any sector.
The seven principles are:
- Selflessness: You should act solely in terms of the public interest and not to gain any financial or other benefits for yourself, your family, or your friends.
- Integrity: You should not place yourself under any financial or other obligation to outside individuals or organisations that might seek to influence you in the performance of your official duties.
- Objectivity: In carrying out public business, including making public appointments or awarding contracts, you should make choices based purely on merit.
- Accountability: You are accountable for your decisions and actions to the public and must submit yourself to whatever scrutiny is appropriate to your office.
- Openness: You should be as open as possible about all the decisions and actions that you take, giving reasons for your choices and restricting information only when the wider public interest clearly demands it.
- Honesty: You have a duty to declare any private interests relating to your public duties and to take steps to resolve any conflicts arising in a way that protects the public interest.
- Leadership: You should promote and support these principles by leadership and example, challenging poor behaviour whenever you see it.
Why these principles matter for your organisation
It is quite common for people in the private or charity sectors to assume these rules do not apply to them because they aren’t “in public life” in the traditional sense. However, we have seen time and again that the most successful boards are those that embrace these values as their North Star, regardless of their legal structure. When a board loses its ethical way, it usually isn’t because the rules were too complex, but because they forgot these basics.
For Public Sector Boards
If you sit on the board of an NHS Trust, a school, or a local authority, these principles are often part of your contractual or regulatory requirements. You are effectively a steward of public money and trust, which means that upholding these standards is a fundamental part of your role as a board member, and it is something we take very seriously here at Leading Governance.
For Charity and Non-Profit Boards
Charities rely heavily on the trust and confidence of the public, their donors, and their beneficiaries to do their important work. The Charity Governance Code explicitly points towards these principles because they help trustees ensure that every decision is focused on the mission of the charity, rather than the personal interests of those who happen to be sitting around the table.
For Private and Corporate Boards
While a private company might be focused on commercial success, the Companies Act 2006 requires directors to consider the long-term reputation of their business and its impact on the community. We are living in an era where customers and employees are increasingly looking for ethical leadership, so a board that practices openness and honesty is much more likely to build a resilient and respected brand that people actually want to do business with. It is about building a culture where people feel proud to work, and that always starts at the very top.
A Practical Deep Dive: The Seven Principles in Action
We find that most people agree with these values in theory, but the real test comes when you have to apply them during a heated board meeting or a difficult recruitment process. It is easy to be selfless when things are going well, but it is much harder when there is a difficult choice to be made and your own preferences are pulling you in another direction.
1. Selflessness This is about being a servant leader and putting the needs of the organisation before your own ego or personal gain. It sounds simple, but it requires a high degree of self-awareness to ensure that your own preferences are not clouding your judgement of what is best for the future of the company, and that can be a very hard thing to do in practice when you feel strongly about a particular path.
2. Integrity Integrity is really about being above influence and ensuring that your strings are not being pulled by anyone outside the boardroom. If your board does not have a robust way to manage external pressures, it is only a matter of time before your decision making starts to look compromised, and once that trust is gone, it is incredibly difficult to get it back.
3. Objectivity Whether you are hiring a new Chief Executive or choosing a new supplier, you must be able to show that your choice was made on merit and supported by evidence. Objectivity is a great tool for fighting off the “groupthink” that often happens when boards become too comfortable or too similar in their thinking, which is a risk we see far too often in organisations of all sizes.
4. Accountability Being a member of a confident board means being willing to stand over your decisions and explain the “why” behind them to whoever needs to know. We find that when boards are prepared to be scrutinised, they actually build much stronger relationships with their shareholders, staff, and the wider public, because people respect honesty even when the news is difficult to hear.
5. Openness We often say that sunlight is the best disinfectant for any organisation, and it is a phrase we stand by because it is so true. By being as transparent as possible about your board policies and how you operate, you create a culture where people feel informed and valued, rather than left in the dark wondering what is going on behind closed doors during those private sessions.
6. Honesty Honesty goes beyond just telling the truth when you are asked a direct question; it involves being proactive about potential conflicts of interest. My advice to anyone sitting on a board is to declare a private interest as soon as it crosses your mind, as it is always better to clean the slate early than to deal with a mess later on that could have been avoided with a bit of foresight.
7. Leadership This is arguably the most vital principle because the board sets the tone for the entire organisation through everything they do. If the directors are seen to live these values every day, that healthy culture will naturally spread through every department, but if the leadership is poor, no amount of policy writing or manual reading will fix the fundamental problems in the organisation.
Video Guides: Starting the Conversation
If you are looking for a way to spark a debate at your next Board Away Day or want to improve your induction process for new members, these short videos are a fantastic resource that we use frequently with our own clients.
- Selflessness
2. Integrity
3. Objectivity
4. Accountability
5. Openness
6. Honesty
7. Leadership
Supporting your Governance Journey
We know that truly sharp boards are those that learn from the experiences of others rather than waiting to make their own mistakes along the way. We have developed a comprehensive library of practical tools to help you embed these principles into your daily work without you having to reinvent the wheel, because we know how busy you are with the day to day running of your business.
Our members have immediate access to a wide range of essential documents, such as:
- A bespoke Board Code of Conduct that is fully aligned with the Nolan Principles.
- A practical Register of Interests Policy to help you manage conflicts professionally and calmly.
- Detailed Board Member Induction Checklists to ensure every new recruit starts on the right foot from their very first meeting.
To access our full library, developed with over 50 combined years of boardroom experience, please click here to join our community.
Good governance is ultimately about making the world a better place through capable and ethical leadership, and we would be delighted to support you and your board as you strive to achieve those great outcomes for the people you serve.
Frequently Asked Questions about the Nolan Principles
We often find that when we introduce these principles to a new board, a few common questions tend to pop up. Here are the answers to the things we get asked most frequently, including some of the specific details that people often look for when they are trying to get their heads around the framework.
Are the Nolan Principles legally binding for my board?
If you are in the public sector, the answer is often a very clear yes, as they are frequently written into codes of conduct or terms of appointment. For charities and private companies, they are not usually “law” in the same sense, but they are considered best practice. Many regulators and funders will look to see if you have an ethical framework in place, and the Nolan Principles are the most respected starting point for that.
Who created the Nolan Principles and why?
The principles were created by the Committee on Standards in Public Life, which was established by the UK government in 1994. The committee was chaired by Lord Nolan, a highly respected judge, and his task was to respond to various “sleaze” scandals that had damaged public trust at the time. He wanted to move away from just having more rules and instead focus on the underlying values and behaviours that make for good leadership.
What is the second Nolan Principle?
The second principle is Integrity. This is one that we talk about a lot with our clients because it is so fundamental to a healthy boardroom. It states that holders of public office should not place themselves under any financial or other obligation to outside individuals or organisations that might seek to influence them in the performance of their official duties. In plain English, it means you must stay independent and ensure your strings are not being pulled by anyone else.
How many Nolan Principles are there in total?
There are seven principles in total: Selflessness, Integrity, Objectivity, Accountability, Openness, Honesty, and Leadership. They were designed to be simple enough to remember but broad enough to cover almost any ethical dilemma that a board might face. We often suggest that boards print them out and have them visible during meetings, as it is a great way to keep everyone focused on the right behaviours.
How can we tell if someone is actually following these principles?
This is where the “Leadership” principle really comes into play. It is one thing to have a signed piece of paper, but it is quite another to see it in action during a difficult debate. We recommend that boards carry out a regular “Board Skills and Culture Audit” to check that the behaviours in the room match the values on the wall. It is about holding each other to account in a kind but firm way, which is something we are very passionate about helping boards to achieve.
What should I do if I think another board member is ignoring these values?
This can be one of the most uncomfortable situations a board member faces, but the seventh principle, Leadership, requires us to challenge poor behaviour. My advice is always to speak with your Chair in the first instance, as they are responsible for the “health” of the boardroom. If the Chair is the person you are concerned about, you should look at your organisation’s “Whistleblowing Policy” or speak with the Vice-Chair or a Senior Independent Director. Ignoring the problem rarely makes it go away; it usually just allows the culture to sour.
Can a board be “too open” with its information?
While the principle of “Openness” is vital, it does not mean that every single conversation should be made public. There will always be matters that are commercially sensitive or relate to private personnel issues that must remain confidential for the good of the organisation. The key is to be as open as you can be and only restrict information when there is a very clear and justifiable reason that the wider public interest clearly demands it.
Do these principles apply to the CEO and staff as well?
While the Nolan Principles were originally designed for those in “public life,” which effectively means the board, we believe that a healthy organisation is one where these values permeate every single level. If the board is seen to be living by these principles in every decision they make, it sets a powerful and positive example for the Chief Executive and the rest of the team to follow. Good governance is not just something for the boardroom; it is the secret sauce for a healthy culture throughout the entire business.