This document discusses good governance at various levels. It defines good governance as the manner in which power is exercised to manage resources for development. Good corporate governance helps build trust and promotes long-term investment, while bad governance can lead to issues like corruption and lack of accountability. The principles of good governance include transparency, accountability, rule of law, and participation. Challenges to good governance in India include criminalization of politics, corruption, and delays in justice. The Good Governance Index evaluates Indian states and UTs across 10 sectors and 58 indicators to assess governance.

1. GOOD GOVERNANCE
DR. MEGHA AGGARWAL
ASSISTANT PROFESSOR
SYMBIOSIS CENTRE FOR MANAGEMENT STUDIES, NOIDA
SYMBIOSIS INTERNATIONAL UNIVERSITY

2. WHY GOVERNANCE IS
REQUIRED?
IN DAY-TO-DAY LIFE (PERSONAL LIFE)
IN CORPORATE CULTURE

3. GOVERNMENT & GOVERNANCE
Nation/people Good Governance
Actions or
set of rules
Government

4. WHY GOVERNANCE IS REQUIRED?
Self
Disciplined
Respect of
Elders/Parents/Teachers
Fear of Elders/Parents/Teachers
Respect of Law/Government rules and
regulations
Fear of Punishment
No impact of the above

5. EXAMPLES OF GOOD GOVERNANCE- WORLD

6. GOOD GOVERNANCE- INDIA

7. GOOD VS BAD CORPORATE GOVERNANCE
• Good corporate governance helps
companies build trust with investors
and the community.
• corporate governance helps promote
financial viability by creating a
long-term investment opportunity for
market participants.
• Good corporate governance involves
a framework that is put in place to get
the most value for the shareholders
legally, ethically, and sustainably.
• Bad corporate governance can cast
doubt on a company's operations
and its ultimate profitability.
• Poor corporate governance can
lead to issues such as corruption,
negligence, fraud and lack of
accountability
• A systemic failure of corporate
governance means the failure of
the whole set of regulatory, market,
stakeholder, and internal
governance.

8. LEVELS OF GOVERNANCE
Corporate Governance
Local Governance
National Governance
International Governance

9. GOOD GOVERNANCE
• In the 1992 report entitled “Governance and Development”, the
World Bank set out its definition of Good Governance.
• It defined Good Governance as “the manner in which power is
exercised in the management of a country’s economic and social
resources for development”.

10. PRINCIPLES OF CORPORATE GOVERNANCE (1/3)

11. PRINCIPLES OF CORPORATE GOVERNANCE (2/3)
• Accountability: Governmental institutions, private sectors, and civil
society organizations should be held accountable to the public and
institutional stakeholders
• Transparency: Information should be accessible to the public and
should be understandable and monitored
• Equity and Inclusiveness: Good governance assures an equitable
society
• Responsiveness: Institutions and processes should serve all
stakeholders in a reasonable period of time

12. PRINCIPLES OF CORPORATE GOVERNANCE (3/3)
• Effective & efficient: Resources of the community should be
used effectively for the maximum output
• Rule of Law: Legal framework should be enforced impartially
• Participation: People should be able to voice their own
opinions through legitimate immediate organizations or
representatives.
• Consensus oriented: a common minimum objective can be
achieved by everyone which will not be detrimental to
anyone.

13. CHALLENGES TO GOOD GOVERNANCE (1/2)
• Criminalization of Politics
• The criminalization of the political process and the unholy nexus between politicians,
civil servants, and business houses are having a baneful influence on public policy
formulation and governance.
• According to the Association of Democratic Reforms, 43% of Members of Parliaments of
Lok Sabha 2019 are facing criminal charges. It is a 26% increase as compared to 2014.
• Corruption
• Corruption is a major obstacle to improving the quality of governance. While human
greed is obviously a driver of corruption, it is the structural incentives and poor
enforcement system to punish the corrupt that have contributed to the rising curve of
graft in India.
• According to the Corruption Perception Index - 2019 (released by Transparency

14. CHALLENGES TO GOOD GOVERNANCE (2/2)
• Delay in Justice
• Growing incidence of violence
• Centralisation of Administrative System
• Marginalization of Socially and Economically
Backward People
• Gender Disparity

15. PROBITY IN GOVERNANCE
Probity is a quality of having strong moral principles. It includes
having integrity, uprightness, and honesty.
• Strict adherence to a code of ethics
• To ensure accountability in governance
• To maintain integrity in Public Service
• To ensure compliance with the process
• To preserve public confidence in Govt process
• To avoid the potential for misconduct, fraud, and corruption

16. GOOD GOVERNANCE- INDIA

17. GGI 2021 FRAMEWORK
Covered ten sectors and 58 indicators-
• 1) Agriculture and Allied Sectors,
• 2) Commerce & Industries,
• 3) Human Resource Development,
• 4) Public Health,
• 5) Public Infrastructure & Utilities,
• 6) Economic Governance,
• 7) Social Welfare & Development,
• 8) Judicial & Public Security,
• 9) Environment, and
• 10) Citizen-Centric Governance

18. GGI 2020-21 CATEGORISES (1/2)
• (i) Other States – Group A;
• (ii) Other States – Group B;
• (iii) North-East and Hill States; and
• (iv) Union Territories

19. GGI 2020-21 CATEGORISES (2/2)
Source: www.darpg.gov.in

20. GOOD GOVERNANCE