According to ISO 26,000, what is governance?

Governance, as described in ISO 26,000, specifically refers to the process of making and implementing decisions. This definition highlights the importance of establishing a structured approach to decision-making that encompasses various aspects of an organization, including the responsibilities of leadership, clarity in roles, and the mechanisms in place for accountability and transparency. Effective governance ensures that the organization operates in alignment with its objectives while also considering the interests of stakeholders. It serves as a critical framework for organizations to navigate complexities and ensure responsible management, thereby fostering trust and credibility among all parties involved.

The other options do not capture the comprehensive nature of governance as outlined by ISO 26,000. Managing personal interests focuses on individual motivations rather than organizational processes. Limiting stakeholder engagement contradicts the principles of good governance, which emphasize inclusivity and the consideration of diverse perspectives. A framework for setting financial goals pertains more to financial planning than to governance, which encompasses a broader range of organizational decision-making processes.