New Governance: Perspectives on Future Requirements for Governance in Organizations

Abstract

Abstract All forms of organization have governance requirements and procedures. Often, these are quite similar despite the form and mission of the organization in question. They only consider governance in the organization environment and rarely look beyond their immediate stakeholders. In many corporations, the immediate stakeholders are even considered to be the investors and only those regardless of the apparency of other close stakeholders such as workers, customers, suppliers, authorities, and interest groups or non-governmental organizations. Even corporations with such narrow views and organizations with a broader stakeholder view are relatively unrealistic and are inappropriate in the modern global world, which we inhabit. Organizations of any form and size need to recognize both the need to consider radical changes in the modern global environment and the opportunities and possibilities presented by the current environment. Therefore, this chapter takes a broad approach and considers governance requirements in the modern world seen from a global perspective for all forms of organization. With global perspective, organizational governance is, here, called New Governance, and it includes the idea, that even the smallest decision can have a dramatic social, economic, or geopolitical impact in other parts of the world. The idea of New Governance is to put on the global lenses when making decisions to consider the potential effect – positive as well as negative – on the local as well as the global perspective, even on the unknown future and on future generations to come. Some may call this sustainable governance, but in this chapter, it is embedded in the New Governance as a concept, which can be nothing else but sustainable in its core idea. The future requirements for New Governance in any kind of organization are discussed, as the relationship between organizations and its global and future stakeholders, and how they form these requirements.