Why good governance matters
29 July 2022, 10:30:00
"Good governance with good intentions is the hallmark of our government." Narendra Modi
According to Frank Herbert, good governance does not have dependency on law, but is directly connected to the leadership qualities of those who govern; it depends on their ability to take responsibility and accountability for both the administration as well as people. It has to be pro-people and pro-active.
Governance is at the heart of any successful business. It is essential for a company or organisation, in order for it to achieve its objectives and drive improvement, to maintain both legal and ethical standing in the eyes of shareholders, regulators and the wider community. Governance is not simply a concern for large companies, but for any business or organisation, in any sector and in any country.
The environment of any organisation affects its appetite when it comes to both innovation and change, which can only be truly managed by good governance. This is because governance affects an organisation's to agility, cohesiveness and adaptability to its environment. Innovation and change occur when the uncertainty around any given idea or strategy is reduced to the point that it can be accepted and implemented.
Good governance can offer a number of important benefits to organisations, including: Better organisational culture, better decision-making and strategic thinking, improved operational effectiveness and efficiency, all of which support economic growth and development.
Therefore, good governance ensures that an organisation's environment is open and transparent, and that employees can be held accountable for their actions and at the same time feel psychologically safe.