Governance is the act of governing. It relates to decisions that define
expectations, grant
power, or verify
performance. It consists of either a separate process or part of
decision-making or
leadership processes. In modern nation-states, these processes and systems are typically administered by a
government.
When discussing governance in particular organisations, the quality of governance within the organisation is often compared to a standard of
good governance.
In the case of a
business or of a
non-profit organization, governance relates to consistent management, cohesive policies, guidance, processes and decision-rights for a given area of responsibility. For example, managing at a corporate level might involve evolving policies on
privacy, on internal investment, and on the use of data.
To distinguish the term
governance from govern
ment: "governance" is what
a "governing body" does. It might be a geo-political entity (nation-state), a corporate entity (business entity), a socio-political entity (chiefdom, tribe, family, etc.), or any number of different kinds of governing bodies, but governance is the way rules are set and implemented.