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Home > Corporate Governance Key Concepts > Governance

Corporate Governance Key Concepts



Governance is associated with decision making, either at the public or private level.

At the public level, a nation or state in a democracy is headed by a democratically elected government organized in ministries or departments. At a private level, either in profit or non-profit making organizations, the governance of a business or charity refers to a set of rules by which the business is organized and conducted either for profit making or for general social well-being. Governance also refers to the process of management and supervision and to the process of exercising authority and supervision at all levels from a government to small businesses.

At the public level, the rules and regulations by which governance is exercised differ from state to state. In relation to a business, the rules and regulations differ depending upon the nature of the industry in which the business operates. The process of governance is more demanding and exigent for a large business than for a smaller one. Listed companies, for example, go through a very rigorous governance setup and procedure that requires transparency and public disclosure.

What is certain is that without the exercise of governance either at state level or private, business level, society and businesses alike would be inefficient, open to corruption, and chaotic.

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