Governance encompasses the system by which an organisation is controlled and operates, and the mechanisms by which it, and its people, are held to account. Ethics, risk management, compliance and administration are all elements of governance.
Good governance is about the processes for making and implementing decisions. It is not about making “correct” decisions, but about the best possible process for making those decisions. Good decision-making processes have a positive effect on various aspects of local government including consultation policies and practices, meeting procedures, service quality processes, council member and employee conduct, role clarification and good working relationships.