Governance

Taking a position on good governance in the energy sector

At the societal level^[1], governance consists of the traditions and institutions by which authority in a country is exercised. This includes the process by which governments are selected, monitored, and replaced; the capacity of the government to effectively formulate and implement sound policies; and the respect of citizens and the state for the institutions that govern economic and social interactions among them. Included in this view of governance are dimensions relating to the quality of public services, the quality of the civil service and the degree of its independence from political pressures, the quality of policy formulation and implementation, and the credibility of the government’s commitments to such policies.

Corporate governance is concerned with processes by which of the Board of Directors supervises or oversees the management of the corporation, to whom the Board has delegated broad power over the corporation’s affairs. Corporate governance requirements arise from corporate legislation and common law, securities legislation and policies, stock exchange rules, and the expectations of shareholder advocacy groups.

The CCRE is concerned with effective governance in both the public and private sectors and the current trend to employ corporate governance structures in government agencies and bureaucracies.

[1] Policy Research Working Paper 5430. The World Bank Development Research Group Macroeconomics and Growth Team. September 2010. Page 4.