Good Governance is Foundational, not Optional

A post by Executive Coaching Associates:

In ESG, a lot seems to be said about the E, some about the S and little about the G. But all are equally vital:

Within the broader environmental, social and governance (ESG) debate, governance often lands as the poor relation. It is seen as the dull end of the stick and too much about control, paperwork and saying ‘no’.

There is no getting away from the fact that governance shapes processes, controls and communication. But we really need a change in mindset to understand that good governance is an enabler. In particular, it:
· Lays the foundation for good practice.
· Encourages a growth mindset.
· Encourages continuous improvement.
· Ensures that organisations behave the way they say they will and to the standards they have embraced.
· Acts as a reference point and framework for dealing with the difficult decisions.

Done well, governance breeds confidence within an organisation and for its external stakeholders. Poor governance, however, undermines an organisation, its culture, its brand, its resilience, its ability to survive and thrive. It’s in the hands of leadership and management to decide whether to build or burn their organisation.