Governance refers to "all processes of governing, whether undertaken by a government, market or network, whether over a family, tribe, formal or informal organization or territory and whether through laws, norms, power or language."[1] It relates to processes and decisions that seek to define actions grant power and verify performance.
To distinguish the term governance from government: "governance" is the concrete activity that reproduces a formal or informal organization. If the organization is a formal one, governance is primarily about what the relevant "governing body" does. If the organization is an informal one, such as a market, governance is primarily about the rules and norms that guide the relevant activity. Whether the organization is a geo-political entity (nation-state), a corporate entity (business entity), a socio-political entity (chiefdom, tribe, family, etc.), or an informal one, its governance is the way the rules and actions are produced, sustained, and regulated.
Corporate governance
Corporate organizations often use the word governance to describe both:
The manner in which boards or their like direct a corporation
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