Definition
Governance. It refers to the controls and processes that make sure of the effectiveness, efficiency, economics, and ethics (and possibly environment sustainability) of a sector. The sector might refer to the entire organization or to an organization unit, a process, systems, or data. The system by which an undertaking is directed and controlled in the interests of shareholders and other stakeholders.
Governance involves a set of relationships between the undertaking’s management, its board, its shareholders, and other stakeholders. Governance provides the structure and processes through which the objectives of the undertaking are set, progress against performance is monitored, and results are evaluated. The term ‘governance bodies’ refers to the administrative, management and supervisory bodies with the highest decision-making authority in the undertaking.
