DEFINITION OF GOVERNANCE
GOVERNANCE – The process of decision-making and the process by which decision are
implemented.
8 Key components of Governance:
1. Governance structure:
a. Board of Directors
b. Committees
c. Management
2. Policies and Procedures – Establishing clear policies that guide decision-making and
operational processes.
3. Risk Management – Integrating risk management into the overall governance framework.
4. Compliance and Regulatory Framework – Implementing compliance programs and
monitoring mechanisms.
5. Performance Management – Regularly viewing performance against these goals.
6. Stakeholder Engagement – Ensuring transparency and accountability in communications.
7. Information Technology Governance – Aligning IT strategy with business goals.
8. Ethics and Corporate Social Responsibility (CSR) – Engaging in CSR initiatives that align
with organization’s values and mission.
Since governance is the process of decision-making and the process by which decisions are
implemented, an analysis of governance focuses on the formal and informal actors involved in
decision-making and implementing decisions made.
Considerations for Implementing Governance:
a. Customization
b. Integration
c. Continuous improvement
d. Training and Awareness
e. Technology and Tools
f. Monitoring and Reporting
What is Good Governance?
- the process whereby public institutions conduct public affairs and manage public resources in
a manner that promotes the rule of law and the realization of human rights.
- Good governance has 8 major characteristics. It assures that corruption is minimized, the
views of minorities are taken into account and that the voices of the most vulnerable in society
are heard in decision making.
Participation
- Participation by both men and women is a key cornerstone of good governance. It is important
to point out that representative democracy does not necessarily mean that the concerns of the
most vulnerable is society would be taken into considerations.
Rule of Law
- Good governance requires fair and legal frameworks that are enforced impartially. It also
requires full protection of human rights, particularly those of minorities.
Transparency
- Transparency means that decisions taken and their enforcement are done in a manner that
follows rules and regulations.
Responsiveness
- Good governance requires that institutions and processes try to serve all stakeholders within a
reasonable timeframe.
Consensus Oriented
- Good governance requires mediation of the different interests in society on what is in the best
interest of the whole community and how this can be achieved. This can only result from an
understanding of the historical, cultural and social contexts of a given society or community.
Equity and Inclusiveness
- A society’s well-being depends on ensuring that all its members fell that they have a stake in it
and do not feel excluded from the mainstream of society.
Effectiveness and efficiency
- Good governance means that processes and institutions produce results that meet the needs
of society while making the best use of resources at their disposal.
Accountability
- An organization or an institution is accountable to those who will be affected by its decisions or
actions.
