Good Governance: A Philosophical Discussion of the Responsibilities and Practices of Organizational Governors

This paper explores the basic responsibilities of those who “govern” any kind of organization, whether these be non-profits, widely held or closely held firms, cooperatives, or voluntary agencies. It adopts a perspective that is largely philosophical and sociological rather than legal or economic, and explores the basic functions of governors in relation to their organizations. It begins its inquiry by contrasting managing and governing. It argues that the practice of governing consists fundamentally in the exercise of reflective and authoritative judgment. The paper then reflects on the basic character of organizations, using what the author refers to as a revised stakeholder model. It argues that organizations are constituted and reconstituted by their ongoing, negotiated, asset-creating interactions with diverse constituencies. With this enlarged view of organizations as a frame of reference, the paper then spells out in order of importance the fundamental responsibilities of governors. These consist of overviewing their organizations to promote the good of their organizations as a whole, reviewing and authorizing organizational strategies, monitoring organizational performances, supervising chief administrators, as well as other tasks. In order to assume these responsibilities effectively, governing boards need to be constituted so that they can deliberate well. While recognizing merit in the view that regards governors primarily as agents of stakeholders with proprietary claims, the paper argues instead that boards should be constituted to represent the interests of their organizations as whole. Resume Cet article examine les responsabilites fondamentales de ceux qui “gouvernent” les different types d'organisa-tions, qu'elles soient organisations sans but lucratif, a capital prive ou cotees en bourse, cooperatives, ou organisations volontaires. Il adopte une perspective essentiellement philosophique et sociologique plutot que legate ou economique, et explore les fonctions fondamentales des gouverneurs par rapport a leurs organisations. II commence par une discussion sur la difference entre gestion et gouvernance. Nous proposons que la gouver-nance est avant tout un exercice de reflexion et implique un jugement d'autorite. Ensuite, nous reflechissons sur le caractere fondamental des organisations en utilisant ce que nous appelons un modele reSvise des parties prenantes (“stakeholders”). Notre argument est que les organisations sont constituees et reconstituees par les interactions permanentes et negociees entre different groupes, et que ce sont ces interactions qui creent les ac-tifs de l'organisation. Avec comme cadre de reference cette vue elargie de l'organisation, cet article enonce par ordre d'importance les responsabilites fondamentales des gouverneurs. Celles-ci consistent a exercer une vue generate sur Vorganisation pour le bien de leur organisation dans son ensemble, de revoir et d'autoriser les strategies organisationnelles, de suivre les performances organisationnelles, de superviser les responsables, ainsi que d'autres tâches. Les comites de gouvernance doivent etre constitues de telle sorte qu ‘ils assument leurs responsabilites et puissent bien deliberer. Tout en reconnaissant le merite du modele des gouverneurs comme agents des parties prenantes, cet article met en avant que les comites de gouvemance devraient representer les interets des organisations dans leur ensemble.