Special offer! Save 25% on new full or international membership with code NOV25. Find out more.

The Post Office Scandal A failure of governance

This policy paper identifies the lessons that can be learnt from one of the worst miscarriages of justice in UK legal history.

The Post Office scandal caused untold suffering to thousands of innocent people, and undermined trust in existing frameworks of governance and business leadership.

Although ostensibly an IT scandal, the root causes were failures in human decision-making, organisational culture and business ethics. Post Office governance – and specifically the board of directors – proved unequal to the task of addressing these issues.

In order to mitigate the risk of a Post Office-type scandal in the future, both in government-owned entities and elsewhere, a new approach to directorship is required.

The Institute of Directors’ policy paper presents key lessons and takeaways for directors, and makes a series of policy recommendations for government aimed at rebuilding trust in UK corporate governance:

  • Professionalise the boards of state-owned entities, requiring directors to undertake an ongoing programme of professional development.
  • Commit their directors to clear ethical standards, such as those defined in the IoD’s Code of Conduct.
  • Reposition UKGI as a champion of good governance in state-owned entities, through placing a greater emphasis on corporate governance rather than corporate finance expertise.
  • Reform the law on computer generated evidence, reviewing the presumption that computers producing evidential records are working properly.
  • Introduce a new corporate form for companies operating in the public interest, such as the Post Office, mandating directors to balance shareholder value creation with broader societal/stakeholder objectives.
  • Strengthen whistleblowing protections to include self-employed contractors, such as Post Office Sub-postmasters.
  • Promote the tech literacy of board members and appoint a Chief Technology Officer to the boards of government-owned entities.
  • Encourage responsible management of legal risk by changes to the UK Corporate Governance Code, giving responsibility to a designated board committee.

Better directors for a better world

The IoD supports directors and business leaders across the UK and beyond to learn, network and build successful, responsible businesses.

Enhancing transparency and accountability

Browse valuable governance resources from the IoD.
Internet Explorer
Your web browser is out of date and is not supported by the IoD website. It is important to update your browser for increased security and a better web experience.