Corporate governance

  1. Corporate governance principles
  2. The Ministry guides its agencies
  3. Four government agencies and three companies
  4. Ministerial governance principles and practices

1. Corporate governance principles

  • Corporate governance is based on legislation and the Government Programme.
  • The agencies have clear roles and duties in the work.
  • The companies under guidance are required to be efficient and profitable.

2. The Ministry guides its agencies

It is the Ministry's responsibility to guide the agencies within its administrative branch, and thus implement the decisions made by Parliament and the Government. The working method is similar to the one used in corporations and it is based on partnerships and expert networks.

The Ministry is responsible for the strategies, guidelines and legislation within its branch, while the agencies are tasked with their operational implementation.

3. Four government agencies and three companies

Agencies within the Ministry's administrative branch include the Finnish Transport Agency, the Transport Safety Agency, the Finnish Communications Regulatory Authority and the Finnish Meteorological Institute.

The Finnish Transport Agency is responsible for roads, railways and waterways and the development of the transport system. It also ensures a high standard of transport services.

The Finnish Transport Safety Agency, Trafi, has responsibility for improving transport safety and promoting environmental friendliness in the transport sector. It is also responsible for public authority functions that relate to transport.

The Finnish Communications Regulatory Authority ensures that communications networks and markets function without interruptions and the position of the communication service user is secured.

The Finnish Meteorological Institute provides information on weather, sea and climate conditions for the purposes of ensuring public safety and meeting the needs of businesses.

The Ministry is also responsible for governance steering of Air Navigation Services Finland Oy, Cinia Oy and Finrail Oy.

Air Navigation Services Finland Oy is responsible for such special functions related to air navigation as airspace management, area control, aeronautical services for state purposes and air search and rescue services.

Cinia Oy provides intelligent network, cloud and software services for Finnish and international enterprises and for functions vital to society.

Finrail Oy is responsible for traffic control and for ensuring that track work can be carried out in the state-owned rail network. It also provides passenger information services at train stations and platform areas with the help of display and public announcement systems.

The Ministry's administrative branch also includes the Finnish Broadcasting Company, Yleisradio Oy. It is steered by the Administrative Council appointed by Parliament.

4. Ministerial governance principles and practices

Guidance and supervision of the agencies aims at clearly defined roles and duties. The goals for the administrative branch are set out in, for example, the corporate strategy and operating and financial plan.

The guidance methods include the performance targets that are set for the agencies and confirmed in cooperation with them in the related agreements.

The ownership policy of state-owned companies is in line with the Government Resolution on Ownership Policy, good governance, and the Ministry's governance guidelines.

The companies are required to be efficient and profitable. The aim is that they are able to invest in growth, maintain a healthy finance structure, and meet their performance and dividend targets.

The companies under ministerial guidance have societal duties that are laid down in legislation.