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Wednesday, December 25, 2013

Governance and Sustainability

Governance can be defined as :

“The traditions and institutions by which authority in a country is exercised” – Kaufman et al

The way “ … power is exercised through a country’s economic, political, and social institutions.” – the World Bank’s PRSP Handbook.

“The exercise of economic, political, and administrative authority to manage a country’s affairs at all levels.  It comprises mechanisms, processes, and institutions through which citizens and groups articulate their interests, exercise their legal rights, meet their obligations, and mediate their differences.”  –  UNDP.


Sustainable governance can be achieved in four ways;

 Management oversight
Structure; Recognize and manage risk

Decision-making
Context;  Relevance;  Rights of shareholders; Interests of stakeholders;  Timeliness;  Inclusiveness;  Transparency.

Integrity in reporting
Materiality; Timely and balanced disclosure; Clarity;  Neutrality;  Accuracy;  Audit ability

Encourage enhanced performance
Remunerate fairly;   Providing indicators of performance.

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