Corporate Governance became an issue when the modern corporation was invented. There are business records of Phoenicians trading businesses dating back to two thousand years BC, and of mining businesses in India that date back more than seven thousand years. Somehow, these businesses needed to develop systems and processses that would engender trust so that the needed capital could be provided and the returns could be shared with the providers of capital. In short they needed corporate governance.
These early enterprises did not have the concept of limited liability and, if the business failed, the owners were held personally responsible for all debts incurred. In some instances, they could be held to more than just financial responsibilities and penalties.
From the very earliest times governments have been responsible for providing an acceptable level of service at an acceptable price to a majority of the elecorate. Government organisations typically work in areas of the economy or society where free market mechanisms would fail and where regulation evolves to keep pace with society, technology and economic development.
The main systems of governance used in Australian government-owned organisations is governance by a board of directos or a council of councillors. Sometimes these may be referred to as other names, such as the governors or committee.
Based upon the authors practical experience, this book contains small "opportunities for reflection" that are designed to highlight the material and give an opportunity to see how a real life board in a real organisation has dealt with, or failed to deal with, the issue. Readers are invited to reflect on how their board is currently dealing with any similar issues. |