When setting up a social enterprise or other non-profit organisation you should be aware of the different ways you can run the organisation and who controls it. The correct governance structure is crucial to the sustainability of social enterprises and can be legally challenging especially to smaller enterprises. It is crucial for organisations to appreciate the importance of accountability. Their company must maintain reputation and public trust. Good governance also means that it is important to promote good relations between board, members, employees, funders, networks etc.
Governance is the term used for the rules, policies and processes used by organisations to guide control and direct how to achieve its goals. The term governance will not be an unfamiliar one but the importance of good governance cannot be underestimated.
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