governance
GUH-ver-nunss
/ˈɡʌvərnəns/
The system of rules, practices, and processes by which a company is directed and controlled.
Focuses on the high-level 'steering' of the organization by the board of directors, rather than daily management.
The story behind the word. The word traces back to the Greek 'kybernan', which meant to steer a ship. This same root gave us 'cybernetics'. It suggests that governance is about keeping the corporate vessel on course.
Word relationships
- administration: Administration is the day-to-day running of things; governance is the overarching framework of rules.
- anarchy: Anarchy is the total absence of a governing system.
Commonly confused with
- government: Government is the group of people who rule a country; governance is the act or manner of ruling.
Word family
- govern (verb): To conduct the policy and affairs of an organization.
Collocations
- corporate governance
- governance framework
- board governance
Example sentences
- "Good corporate governance helps to build an environment of trust, transparency and accountability necessary for fostering long-term investment." Corporate Strategy
Memory hook
Governance is like a 'Governor' on an engine—it keeps the speed and direction under control. Steer the ship.
When not to use
Avoid using it as a synonym for 'government' (the political body), though they share a root.
Fun facts
- Plato used the same root to describe the 'steering' of a city-state.
Related words
Explore more words
govern, administrative, transparency, regulation, accountability, rule of law
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