Governance as a Bridge to Sustainability

Governance as a Bridge to Sustainability

Ulas Akkucuk (Bogazici University, Turkey) and Tutku Seckin-Celik (Istanbul Medeniyet University, Turkey)
DOI: 10.4018/978-1-5225-8970-9.ch006

Abstract

Governance has evolved to be an extremely critical notion for the developed world as well as for the developing countries. For the developing world, novel concepts required for good governance practice may not be easily understood or widely practiced by the stakeholders of private or public corporations. Good governance is needed for numerous institutions both public and private. For public entities, good governance results in scientifically motivated policy development, an increase in accountability and transparency and finally the involvement of all stakeholders in the decision-making process. For non-governmental organizations, governance results in better allocation of resources, finding new opportunities for collaboration, and better cooperation with governmental bodies. For the private sector, governance increases the reliability of the organizations and contributes to sustainability, and a climate of trust to be established among the stakeholders. This chapter will include an extant review of the literature on how good governance and sustainable value creation come hand in hand.
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Introduction

Governance has grown to be an extremely critical concept for the developed world as well as for the developing nations. For the developing world, new concepts required for good governance practice may not be easily understood or extensively practiced by the stakeholders of private or public corporations. Good governance is required for various institutions both public and private. For public entities, good governance results in scientifically motivated policy development, an increase in accountability and transparency and finally the involvement of all stakeholders in the decision-making process. For non-governmental organizations, governance results in better allocation of resources, finding new opportunities for collaboration, and better cooperation with governmental bodies. For the private sector, governance increases the reliability of the organizations and contributes to sustainability, and a climate of trust to be established among the stakeholders. This paper will include an extant review of the literature on how good governance and sustainable value creation come hand in hand.

The paper is structured as follows. First the relationship of governance and corporate governance is clarified. After that the importance of non-governmental organizations in terms of governance is discussed. Then a newly emerging trend named NGO & Business Partnership is examined. After scrutinizing the notion of governance especially in emerging markets like Turkey, the paper’s final section gives the recommendations and discussion.

Key Terms in this Chapter

Emerging Market: An emerging market is a country that has some characteristics of a developed market but does not live up to some standards to be called a developed market.

Corporate Governance: Is the structure of rules, practices and processes by which a company is directed.

Governance: The framework of rules and practices to ensure accountability, fairness, and transparency in an institution’s relationship with its all stakeholders (customers, management, employees, government, and the community).

Sustainability: The quality of causing little or no damage to the environment and therefore being able to continue operations for a long time.

Corporate Social Responsibility: Abbreviated as CSR, this term is a business approach that contributes to sustainable development by bringing economic, social and environmental benefits to all stakeholders.

NGO: Non-governmental organization.

Turkey: A country with a population of 80 million lying on both the Asian and European continents.

NGO Business Partnership: These new coalitions help to reinforce the legitimacy and social acceptability of companies. In addition, they make essential goods and services accessible to a broader population.

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