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We hear more and more the wording “good governance”. The international financial institutions increasingly base their financial support on the condition that their money finances reforms that ensure “good governance”. The concept is not new. It simply defines qualitatively the decision-making process and the process by which decisions are made. Good governance can be used in many contexts: corporate, international, national or local governance.

The Council of Europe defines good governance – the responsible conduct of public affairs and the management of public resources – through 12 principles enshrined in the Strategy for Innovation and Good Governance at Local Level, approved by a decision of the Committee of Ministers of the Council of Europe in 2008. They cover issues such as ethical conduct, rule of law, efficiency and effectiveness, transparency, sound financial management and accountability. And according to a simplified UN definition, good governance has 8 major features: participatory, consensus-oriented, accountable, transparent, receptive, effective and efficient, fair and inclusive, and compliance with the rule of law. Good governance ensures that corruption is kept to a minimum, that the views of minorities are taken into account and that the voices of the most vulnerable persons in society are heard in the decision-making process.

Technology, computerization, data use are transforming the governance around the globe. The manner in which we apply the ethical and innovative use of data and information technology to the most pressing challenges of the society is the key to how we govern our future world. Good governance at all levels is fundamental to growth, political stability and security – it is in fact a key factor for stability and security. Good governance brings improved economic benefits in a world of great socio-economic challenges and accelerates the economic transitions.

Good governance supports the business leaders to act always in the best interests of the shareholders, can improve business performance, can help the business become more stable and productive and unlock new opportunities. It can reduce the risks and enable faster and safer growth.

For a harmonious development, the Romanian society and implicitly the capital market need a responsible and deeply committed leadership, people who excel in the position of leaders of the issuing companies. And leaders’ responsibility begins with education and professional ethics.

The boards of directors should be populated with true, responsible, educated leaders having deep moral and ethical values. A company’s board represents the interests of shareholders and investors, and investors’ desire is to maximize the profit. But maximizing the profit and respecting investors’ interest can be achieved by producing at the same time: social growth, society development and transformation of mentalities. All these under the sign of a real respect for the Romanian law.

Where good governance lacks and the law is violated, government’s authority must intervene promptly and drastically, for the benefit of the society. Romania really needs fundamental values such as: Honesty, Integrity, Accountability, Transparency, Respect for the laws of the state.

Daniel Apostol

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