Principle-Based Governance: Infuence Outcomes through Values and Beliefs

Abstract

This article examines how public and not-for-profit governance boards can influence outcomes by asserting their values and beliefs on all levels of an organization. The purpose of this article is to present and apply a governance model call Principle-based Governance developed for public and not-for-profit organizations to a theoretical model calling for the creation of a hybrid/vector model of governance. The governance model presented focuses on providing assurance to constituents, fostering an organization that maintains sustainable balance, and engaged constituents in shared governance processes. Through the articulation of board governance (direct control), guiding the system (shared influence) and administrative empowerment (delegated authority) functions, the governance model provides clear demarcation between the role of the CEO and the board. It draws upon published research pertaining to effective governance and applied experience in implementing aspects of the Principle-Based Governance Model (Assurance). The article concludes that the governance model does address fully the primary intent of the hybrid/vector governance model.