CHAPTER 1

Question 1

Until the late ______ governance was not a word heard frequently

Answer 1

1800s

Question 2

First used by world bank and ____ in the report on ______

Answer 2

1989 ; sub-Saharah Africa

Question 3

In _____ the world bank introduced good governance as part of its _____ for lending to developing countries

Answer 3

1992; criteria

Question 4

is the name given to the entity exercising that authority.

Answer 4

Government

Question 5

can most simply define as legitimate power to make decision on behalf of the organization.

Answer 5

Authority

Question 6

is therefore based on an acknowledged duty to obey rather than on any form of coercion or manipulation.

Answer 6

Authority

Question 7

the ability to influence the behavior of others, authority is the right to do so.

Answer 7

Power

Question 8

distinguished between three kinds of authority, based on the different grounds upon which obedience can be established

Answer 8

Weber

Question 9

Three types of authority

Answer 9

Traditional authority
Charismatic authority
Legal authority

Question 10

is rooted in history or tradition like monarchies.

Answer 10

Traditional authority

Question 11

stems from personality-derives from individual’s extraordinary personal qualities. Examples: Martin Luther, Nelson Mandela

Answer 11

Charismatic Authority

Question 12

is grounded in a set of impersonal rules. It is a form of leadership in which authority of a ruling government regime comes from system of bureaucracy, public choice and legality.

Answer 12

Legal authority

Question 13

The system by which entities are directed and controlled. It is concerned with structure and processes for decision-making, accountability, control, and behavior at the top of an entity.

Answer 13

Governance

Question 14

influences how an organization’s objectives are set and achieved, how risk is monitored and addressed and how performance is optimized”.

Answer 14

Governance

Question 15

is a system and process, not a single activity and therefore successful implementation of a good governance strategy requires a systematic approach that incorporates strategic planning, risk management, and performance management.

Answer 15

Governance

Question 16

it is a core component of the unique characteristics of a successful organization.

Answer 16

Governance

Question 17

defines ____ as the process whereby societies or organizations make their important decisions, determine who has the voice, who is engaged in the process, and how an account is rendered.

Answer 17

Governance IOG

Question 18

It assures that corruption is minimized, The views of minorities are taken into account, and that the voices of the most vulnerable in society are heard in decision-making. It is also responsive to the present and future needs of society.

Answer 18

Good Governance

Question 19

Characteristics of Good Governance

Answer 19

Participation
Consensus Orientation
Accountability
Transparency
Responsiveness
Equity and Inclusiveness
Effectiveness and Efficiency
Rule of Law

Question 20

All men and women should have a voice in decision-making, either directly or through legitimate intermediate institutions that represent their interests. Such broad participation is built on freedom of association and speech, as well as capacities to participate constructively.

Answer 20

Participation

Question 21

Good governance mediates differing interests to reach a broad consensus on what is in the best interests of the group and,. Where possible, on policies and procedures

Answer 21

Consensus Orientation

Question 22

Is based on the principle that every person or group is responsible for their actions, especially when their acts affect the public interest.

Answer 22

Accountability

Question 23

It refers to the answerability or responsibility for one’s actions so that systems exist for decision-makers in government, the private sector and civil society organizations to answer to the public, as well as to institutional stakeholders.

Answer 23

Accountability

Question 24

built on the free flow of information. Processes, institutions, and information are direct and accessible to those concerned with them, and enough information is provided to understand and monitor them.

Answer 24

Transparency

Question 25

Good governance requires that institutions and processes try to serve all stakeholders within a reasonable timeframe.

Answer 25

Responsiveness

Question 26

All men and women have opportunities to improve or maintain their well-being.
Exist where everyone has opportunities to improve or maintain their well-being. This means that all members of society, especially the most vulnerable, are taken into consideration in policymaking, and no one feels alienated, disenfranchised or left behind.

Answer 26

Equity and Inclusiveness

Question 27

Processes and institutions produce results that meet needs while making the best use of resources.

Answer 27

Effectiveness and Efficiency

Question 28

It demands that the people and civil society render habitual obedience to the law.
It also demands that the government acts within the limits of the powers and functions prescribed by the rule of law means “peace and order” “absence of corruption”, an impartial and effective justice system”, observance and protection of human rights.”

Answer 28

Rule of Law

Question 29

Importance of Good Governance

Answer 29

▪ Strong and effective corporate governance helps to cultivate a company culture of integrity, leading to positive performance and a sustainable business overall.
▪ Essentially, it exists to increase the accountability of all individuals and teams within your company, working to avoid mistakes before they can even occur.
▪ When a company has solid corporate governance, it signals to the market that the organization is well managed and that the interests of management are aligned with external stakeholders.
▪ As a result, it can provide your company with a strong competitive advantage.
▪ Bad corporate governance can cast doubt on a company’s operations and its ultimate profitability.

Question 30

Benefits of Good Governance (Long Version)

Answer 30

▪ Good corporate governance creates transparent rules and controls, provides guidance to leadership, and aligns the interests of shareholders, directors, management, and employees.
▪ It helps build trust with investors, the community, and public officials.
▪ Corporate governance can give investors and stakeholders a clear idea of a company’s direction and business integrity.
▪ It promotes long-term financial viability, opportunity, and returns.
▪ It can facilitate the raising of capital.
▪ Good corporate governance can translate to rising share prices.
▪ It can lessen the potential for financial loss, waste, risks, and corruption.
▪ It is a game plan for resilience and long-term success.

Question 31

Benefits of Good Governance

Answer 31

1. Efficient Processes
2. Visibility of Errors
3. Reduced Costs
4. Smoother-Running Operations
5. Compliance

Question 32

due to the repeatability and consistency of tasks performed.

Answer 32

Efficient Processes

Question 33

this repeatability and consistently helps to quickly identify the nonconformities in processes.

Answer 33

Visibility of Errors

Question 34

when tasks are streamlined, companies can eliminate the waste from scrap, rework, and any other costly inefficiencies.

Answer 34

Reduced Costs

Question 35

regular disruptions from inconsistent processes are eliminated, as operation specifics become either ‘conform’ or ‘non-conform’.

Answer 35

Smoother Running Operations

Question 36

a culture that supports corporate governance allows for its product to reach the market while meeting its intended specifications and working

Answer 36

Compliance