Definitions and Theoretical Frameworks of Governance

Abstract

This chapter discusses corporate governance; they promote governance as a system by which companies and organizations are directed and controlled. Good governance involves a number of aspects that occur in the process of governing. Corporate governance policies and practices define the performance of an organization. The main pillars of corporate governance are accountability, transparency, fairness, and disclosure. The performance of companies and organizations in relation to these pillars determines their overall evaluation in terms of good governance. The definitions of governance and good governance are now folded into a discussion of corporate and nonprofit governance. The boards of directors play a significant role in the overall management and control of corporations and organizations. A corporate board of directors is generally the oversight body that ensures the company’s performance meets the owners’ or stakeholders’ expectations and helps manage/resolve disputes in the process.