Business Ethics and Corporate Governance, Second Edition

THE CONCEPT OF GOVERNANCE

The concept of ‘governance’ is as old as human civilization. Simply stated, ‘governance’ means the process of decision-making and the process by which decisions are implemented (or not implemented). Governance can be used in several contexts such as corporate governance, international governance, national governance and local governance.

Since governance is the process of decision-making and the process by which decisions are implemented, an analysis of governance focusses on the formal and informal players involved in decision-making and implementing the decisions made and the formal and informal structures that have been set in place to arrive at and implement the decision.

Government is one of the players in governance. ...