Definitions of Governance
Governance deals with the processes and systems by which an organization or society operate.
Ensuring sound governance is very important to any non-profit organization. Without good governance, organizations fall into the trap of focusing too narrowly on operations and do not have time for the true objectives of the organization. Good governance enables organizations to set realistic goals for the organization’s future.
Governance deals with the processes and systems by which an organization or society operate. Frequently a government is established to administer these processes and systems. The term governance is sometimes erroneously used synonymously with the term government. It is often used by corporate organizations to describe the manner in which a corporation is directed, and laws and customs applying to that direction. (Wikipedia)
It is the legal authority of a board to establish policies that will affect the life and work of the organization while holding the board accountable for the outcome of such decisions.
Some view governance as a set of ideas about how direction is provided to human activity – to any form of collective action. What distinguishes governance from management is that it is concerned with how the big (or strategic) decisions are taken – decisions related to achieving important galas, maintaining key relations, and providing feedback – and who takes those decisions.
Governance determines who has power, who makes decisions, how other players make their voice heard and how account is rendered. (Institute on Governance).
Governance refers to the processes and structures used to direct and manage an organization’s operations and activities. It defines the division of power and establishes mechanisms to achieve accountability among stakeholders, the board of directors and management.
Good governance systems are designed to help organizations focus on the activities that contribute most to their overall objectives, use their resources effectively, and ensure that they are managed in the best interests of their stakeholders. (Deloitte Centre for Corporate Governance)
Governance is the process of providing strategic leadership to a non-profit organization. It entails the functions of setting direction, making policy and strategy decisions, overseeing and monitoring organizational performance, and ensuring overall accountability. Non-profit governance is a political and organizational process involving multiple functions and engaging multiple stakeholders.
The meaning of governance is relatively different for non-profit and governmental settings. Public sector (government) governance refers to the political process of policy and decision-making for communities and political jurisdictions, whereas non-profit governance refers to the process of providing leadership, direction, and accountability for a specific non-governmental, not-for-profit organization.
