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What is good governance?

What is governance?

Governance is also the way of managing. It is a fairly general term, defined in various ways. Maybe definition is even a big word. Governance is rather a container concept that is defined and defined in a different way by every company and organization.


What is good governance?

If we start from the meaning of 'government in the longer term' for governance, then 'good governance' is about good governance in the longer term. Since companies and organizations differ in objectives, activities and size, good governance is also different for every company and organization. Each party must determine for itself which aspects play a role in this.


It is clear that good governance is not only about the primary goal of a company or organization, such as selling a product or providing a service and the financial key figures. It is also about the values ​​that the company uses to achieve this goal. Think, for example, of diversity, sustainability, talent development and innovation. There is no unambiguous list of criteria for good governance, which is different for every company and organization.


Three elements of corporate governance

Conducting corporate governance consists of three elements. First, it concerns the interaction of stakeholders in the functioning of a company. Second, corporate governance is about achieving the benefits and efficiency of corporate actions by enabling the performance of the company to be influenced through stakeholder participation. Third, corporate governance is about what good governance is

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