Governance

Governance (거버넌스, 협치/協治) refers to a set of rules and principles, or a mechanism which determines the relationship among the participants and interested persons of an organization like a government body or a corporation, and settles the conflicts of interest between the participants and interested persons in a cooperative manner.

Usage
Governance is an important keyword which is frequently used in the following cases.

Corporate governance
Corporate governance (기업지배구조/企業支配構造) means various rules and principles on how to govern a corporation where conflicts of interests among large shareholders (대주주/大株主), top management, minority shareholders, creditors, employees, consumers, community and government. Those out of the investor group are called "stakeholders" (이해관계인/利害關係人). So the corporate governance deals with conflicts of interests between the large shareholder and minority shareholders; shareholders and stakeholders; providers of finance and management.

In a narrow sense, corporate governance means a system, legal or practical, to monitor and regulate the corporate management for the protection of interests of minority shareholders and stakeholders. In Korea, the corporate governance is realized in such a manner as separation of ownership and control, adoption of outside directors, ensurance of independence of the auditor, enhancement of shareholders' rights, advancement of the accounting system, enforcement of financial supervisory systems, etc.

OECD principles
In the course of international discussions, the Organization for Economic Cooperation and Development (OECD) member states reached a conclusion on the principles of corporate governance in 1996, 1999 and then 2004.

The OECD Principles of Corporate Governance consists of the following:
 * Ensuring the Basis for an Effective Corporate Governance Framework;
 * The Rights of Shareholders and Key Ownership Functions;
 * The Equitable Treatment of Shareholders;
 * The Role of Stakeholders in Corporate Governance;
 * Disclosure and Transparency; and
 * The Responsibilities of the Board.

IT governance
IT governance (IT 거버넌스) means a mechanism, in line with Corporate Governance, in which the management engaged in information and communications technology (ICT) is to enhance the effectiveness and transparency of ICT business. Then the management is accountable for the operation of ICT business.

Smart grid governance is a part of IT governance.

Institutions
The United Nations Project Office on Governance (UNPOG) was established in 2006 as a subsidiary organization of the United Nations Department of Economic and Social Affairs (UNDESA) and is headquartered in Seoul, Korea.

Its principal mission is to assist the United Nations Member States improve their governance capacity. Since its inception, it has conducted research and capacity-building activities and disseminated global and local best practices on participatory, transparent and effective democratic governance.

The office was established as an outcome of the Sixth Global Forum on Reinventing Government, hosted by the Republic of Korea in cooperation with the United Nations in May 2005. At the conclusion of the Sixth Global Forum, participants endorsed the Seoul Declaration on Participatory and Transparent Governance, which called for the creation of the United Nations Governance Centre (UNGC). A Technical Cooperation Trust Fund Agreement was concluded between the Republic of Korea and the United Nations in June 2006. The office was officially renamed to its current title in January 2009.

The office is in partnership with the United Nations Public Administration Network (UNPAN), which is operated by the Division for Public Administration and Development Management branch of the United Nations Department of Economic and Social Affairs.