Governance

Governance - Baldrige Glossary Definition

(Baldrige Glossary for Business, Government (Public Sector) and other Nonprofit

The term 'Governance' was first introduced in the Baldrige Glossary in 2003.

Governance

The term “governance” refers to the system of management and controls exercised in the stewardship of your organization. It includes the responsibilities of your organization’s owners/shareholders, board of directors, and senior leaders. Corporate or organizational charters, bylaws, and policies document the rights and responsibilities of each of the parties and describe how your organization will be directed and controlled to ensure (1) accountability to owners/shareholders and other stakeholders, (2) transparency of operations, and (3) fair treatment of all stakeholders. Governance processes may include the approval of strategic direction, the monitoring and evaluation of the CEO's performance, the establishment of executive compensation and benefits, succession planning, financial auditing, risk management, disclosure, and shareholder reporting. Ensuring effective governance is important to stakeholders’ and the larger society’s trust and to organizational effectiveness.

Note: Blue words above are hyperlinks to other Integrated Glossary terms.

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Baldrige Glossary - Governance