Board governance refers to the system by which an organization is directed and controlled. It involves the processes and structures that ensure accountability, fairness, and transparency in an organization's relationship with its stakeholders, including shareholders, employees, and the community. Effective board governance helps organizations achieve their objectives while managing risks and ensuring compliance with laws and regulations.
A board of directors typically oversees governance, making strategic decisions and providing guidance to management. The board is responsible for setting the organization's mission and vision, monitoring performance, and ensuring that resources are used effectively. Good governance practices promote ethical behavior and foster trust among stakeholders, ultimately contributing to the organization's long-term success.