Question

What are the basic “elements of the Effective Governance Model”?

Answer 1

Governance plays a major role for the organization towards setting policies, decision making etc where the stakeholder will be included for the current business and future business activities.

The following are the basic elements of the Effective Governance Model:

1. Rule of Law: Stakeholders are protected with a strong enforcement of rules that are legally framed by a body which is impartial in nature.
2. Transparency: Information is readily available for whom ever is in need of it and they are usually in a form that is easily understandable. The results that are obtained from the policies and regulations are also considered, there is no hidden information anywhere.
3. Responsiveness: Organizations always strive to work for the good of the stakeholders and do the best for them. They design their rules and policies in such a way that it profits its stakeholders.
4. Accountability: An organization should take responsibility of whatever happens to the stakeholders from their policies and regulations. It is one of the good nature of organization.
5. Equity: The organization should provide an opportunity for the stakeholders to improve their status in various aspects. The organization gives out good reasons for its establishment to its society.