Third wave of governance
Third Wave of Governance
To organisation types or research themes
Governance is a dynamic process that is influenced by the times that we live in. Evolution in the world such as digitalisation, technological innovations and awareness of the environment require new perspectives in terms of governance. In the first and second "waves of governance" the roles of the board of directors and balancing shareholder needs were central topics.
The “third wave of governance” builds on these topics and stresses the importance of aligning interests between different internal and external stakeholders. Getting everyone in the same direction is not an easy task, especially when the interests of the organisation seem to be controversial to those of some stakeholders. How can we increase productivity without driving our employees into burnout? How can we grow without being a burden to the planet?
Aligning interests for the long-term
Board members have to ask themselves fundamental questions such as the role of the organisations in society. The importance of the ecosystem that organisations function in is more important than the interests of the organisation by themselves. Only when these seemingly controversial interests are aligned will the organisation be more sure of having a competitive advantage in the future. In other words, sustainable entrepreneurship and ethical behaviour are necessary in the short-term in order to reach long-term results and stability. In addition to being more agility and flexible, adjusting to the needs of society and other stakeholders, organisations also need a certain level of stability or resilience.