Governance refers to the framework of rules, practices, and processes by which an organization is directed and controlled. It encompasses the mechanisms through which organizations, and those in control, are held accountable. Effective governance ensures that an organization operates efficiently, ethically, and in alignment with its goals.
Characteristics
– Accountability: Individuals and teams are responsible for their actions and decisions.
– Transparency: Processes and decisions are open and clear to stakeholders.
– Participation: Stakeholders are involved in decision-making processes.
– Rule of Law: Governance is conducted according to established laws and regulations.
– Equity and Inclusiveness: All stakeholders have a voice and are treated fairly.
Examples
– A board of directors overseeing a company’s strategic direction and financial performance.
– Policies and procedures established to ensure compliance with legal and regulatory requirements.
– Stakeholder engagement initiatives that gather input from employees, customers, and community members to inform decision-making.