Governance in short
Governance, it is fiduciary form, consists in implementing all the means for an organization to achieve the ends for which it has been created in a manner that is transparent, effective and meets the expectations of its stakeholders.
Governance is thus made of accountability rules and operating principles implemented by the board of directors to define the strategic orientations of the organization, ensure supervision by management, assess its economic and social performance and promote the emergence of values of integrity and excellence within the organization. The implementation of such fiduciary governance certainly represents progress in most areas of activity.
However, IGOPP promotes a form of governance which creates value, is more exacting but better suited for spurring strong performance, providing a breath of fresh air and contributing sustainable value to the underlying organization.
This value creating governance requires “activist”, legitimate and credible board members. It rests on the four pillars described below:
“While it is legitimacy that gives a board the authority to impose its will on management, it is credibility that makes a board effective and value creating.” (“The Independence of Board Members: a Quest for Legitimacy “) Position paper of IGOPP, 2008.