'Governance' makes decisions that define expectations, grant
power, or verify
performance.
It consists either of a separate process or of a specific part of
management or
leadership processes. Sometimes people set up a
government to administer these processes and systems.
In the case of a
business or of a
non-profit organization, governance develops and manages consistent, cohesive policies, processes and decision-rights for a given area of responsibility. For example, managing at a corporate level might involve evolving policies on
privacy, on internal investment, and on the use of data.
Word-origin
The word ''governance'' derives from
Latin origins that suggest the notion of "steering". One can contrast this sense of "steering" a group or society with the traditional "top-down" approach of governments "driving" society. Distinguish between governance's "power to " and governments' "power over".
Processes and governance
As a process, governance may operate in an organization of any size: from a single human being to all of humanity; and it may function for any purpose, good or evil, for profit or not. A reasonable or rational purpose of governance might aim to assure, (sometimes on behalf of others) that an organization produces a worthwhile pattern of good results while avoiding an undesirable pattern of bad circumstances.
Perhaps the most moral or natural purpose of governance consists of assuring, on behalf of those governed, a worthy pattern of good while avoiding an undesirable pattern of bad. The ideal purpose, obviously, would assure a perfect pattern of good with no bad.
A government, then, comprises a set of inter-related positions that govern and that use or exercise power, particularly
coercive power.
A good government, following this line of thought, could consist of a set of inter-related positions exercising coercive power that assures, on behalf of those governed, a worthwhile pattern of good results while avoiding an undesirable pattern of bad circumstances, by making decisions that define expectations, grant power, and verify performance.
Politics provides a means by which the governance process operates. For example, people may choose expectations by way of political activity; they may grant power through political action, and they may judge performance through political behavior.
Conceiving of governance in this way, one can apply the concept to as large a
nation-state as desired, to
corporations, to
non-profits, to
NGOs, to partnerships and other associations, to
project-teams, and to any number of humans engaged in some purposeful activity.
Different definitions
The
World Bank defines governance as
:''the exercise of political authority and the use of institutional resources to manage society's problems and affairs''.
An alternate definition sees governance as
:''the use of institutions, structures of authority and even
collaboration to allocate
resources and coordinate or control activity in society or the economy''.
English-speakers sometimes erroneously confuse the term ''governance'' with the term ''
government''.
According to the
UNDP's Regional Project on Local Governance for Latin America:
Governance has been defined as the rules of the political system to solve conflicts between actors and adopt decision (legality). It has also been used to describe the "proper functioning of institutions and their acceptance by the public" (legitimacy). And it has been used to invoke the efficacy of government and the achievement of consensus by democratic means (participation).((fact}}
The state and politics
Some suggest making a clear distinction between the concepts of governance and of
politics. Politics involves processes by which a group of people with initially divergent opinions or interests reach collective decisions generally regarded as binding on the group, and enforced as common
policy. Governance, on the other hand, conveys the
administrative and process-oriented elements of governing rather than its antagonistic ones. Such an argument continues to assume the possibility of the traditional separation between "politics" and "administration". Contemporary governance practice and theory sometimes questions this distinction, premising that both "governance" and "politics" involve aspects of
power.
In general terms, governance occurs in three broad ways:
# Through top-down methods that primarily involve governments and the state
bureaucracy
# Through the use of
market mechanisms whereby market principles of
competition serve to allocate resources while operating under government regulation
# Through networks involving
public-private partnerships (PPP) or with the collaboration of community organisations
These modes of governance often appear in terms of
hierarchy,
markets, and networks.
Corporate organizations
Corporate organizations often use the word ''governance'' to describe both:
# The manner in which
boards or their like direct a corporation, and
# The laws and customs (rules) applying to that direction
Industry
The term ''governance'' also occurs in
industry — especially in the
information technology (IT)
sector — to describe the processes to follow in a "successful" department,
team or
project. (See
project governance)
Fair governance
A
fair governance implies that mechanisms function in a way that allows the executives (the "agents") to respect the rights and interests of the
stakeholders (the "principals"), in a spirit of
democracy.
Types of governance
Global governance
:''see the main article at
Global governance for a more detailed explanation.''
In contrast to the traditional meaning of "governance", some authors like
James Rosenau have used the term "global governance" to denote the regulation of interdependent relations in the absence of an overarching political authority. The best example of this in the international system or relationships between independent states. The term can however apply wherever a group of free equals need to form a regular relationship.
Corporate governance
''See the main article at
corporate governance.''
Corporate governance consists of the set of processes, customs, policies, laws and institutions affecting the way people direct, administer or control a
corporation. Corporate governance also includes the relationships among the many players involved (the
stakeholders) and the corporate
goals. The principal players include the
shareholders,
management, and the
board of directors. Other stakeholders include employees, suppliers, customers, banks and other lenders, regulators, the environment and the community at large.
Project governance
:''See Main article
Project governance.''
The term ''governance'' as used in industry (especially in the information technology (IT) sector) describes the processes that need to exist for a successful
project.
Information technology governance
:''See Main article
Information technology governance.''
See also
★
Good Governance
★
Anarchism
★
Democracy
★
Corporate governance
★
Global governance
★
Government
★
Politics
★
Public choice
★
Principal-agent problem
★
Social innovation
★
Statism
★
Worldwide Governance Indicators
External links
★ we can see for more Revue gouvernance in : http://www.revuegouvernance.ca
★
The Institute On Governance
★
Development Gateway Governance Community
★
The Encyclopaedia about Corporate Governance
★
A Whitepaper on IT Governance (Warning: Registration required)
★
Regional Project on Local Governance for Latin America
★
The Inspector General - A Governance Legacy
★ Theories of Governance by
Renate Mayntz,
R.A.W Rhodes,
J. Kooiman
★
A white paper on Sarbanes Governance
★
Various links on governance and related topics.
★
History of Parliament
★
Governance Focus: the full range of governance, ethics, CSR, social responsibility, development and compliance, in English & Spanish
★
Worldwide Governance Indicators
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