Corporate governance is concerned with holding the balance between economic and social goals and between individual and communal goals...the aim is to align as nearly as possible the interests of individuals, corporations and society. -- Sir Adrian Cadbury Corporate, Governance Overview, 1999 World Bank Report
"The significance of corporate governance is now widely recognised, both for national development and as part of international financial architecture, as a lever to address the converging interests of competitiveness, corporate citizenship, and social and environmental responsibility. It is also an effective mechanism for encouraging efficiency and combating corruption. Companies are governed within the framework of the laws and regulations of the country in which they operate. Communities and countries differ in their culture, regulation, law and generally the way business is done. In consequence, as the World Bank has pointed out, there can be no single generally applicable corporate governance model. Yet there are international standards that no country can escape in the era of the global investor. Thus, international guidelines have been developed by the Organisation for Economic Co-operation and Development (OECD), the International Corporate Governance Network, and the Commonwealth Association for Corporate Governance. The four primary pillars of fairness, accountability, responsibility and transparency are fundamental to all these international guidelines of corporate governance." - King II Executive Summary
"The key challenge for good corporate citizenship is to seek an appropriate balance between enterprise (performance) and constraints (conformance), so taking into account the expectations of shareowners for reasonable capital growth and the responsibility concerning the interests of other stakeholders of the company. This is probably best encapsulated in the statement attributed to the President of the World Bank, Jim Wolfensohn, that “[t]he proper governance of companies will become as crucial to the world economy as the proper governing of countries”. Proper governance embraces both performance and conformance." Ibid.
This diagram illustrates the relationship between governance, management and operations. It also demonstrates how service governance uses the service portfolio as a means for the board to govern the investments in services to deliver value to stakeholders