Is a Small Medium Practitioner likely to have less good governance? Franco Privitelli, Partner at MGI Worldwide with CPAAI member firm MGI Malta, explains
Writing in this summer's edition of 'The Accountant’ - a leading publication for the Maltese Accountancy and Audit profession, published by 'The Malta Institute of Accountants' - Partner and Director at MGI Malta, Franco Privitelli examines the meaning and main characteristics of Good Governance for a Small-Medium Practitioner (SMP).
What is 'good governance'?
Franco explains: "The common perception is that Good Governance is a new minted term, however the concept is one which is as old as human civilization; for 'Governance' means 'the process of decision-making and the process by which decisions are implemented or not implemented'.
"Although the term is a resounding one with connotations of big business, macro institutions, national or local governance, and international governance; this is a far cry from its true substance. Governance is the process of decision making and hence the process by which decisions are implemented. Consequently one needs to focus on the actors of the decision making and the structures (whether formal or informal) in which those decision makers operate."
What are the main characteristics of good governance?
"Primarily one may list down the major characteristics at the heart of good governance as:
- Participatory
- Consensus oriented
- Accountable
- Transparent
- Responsive
- Effective & efficient
- Equitable and inclusive
- Follows the rule of law
"Obviously not all characteristics will be predominant to the same degree, much depends on the specific circumstance under consideration. However, the combination of all these characteristics are at the root of good governance.
"From an SMP perspective the above may seem a tall order and implementing good governance practices might be far down the priority list. But investing in good governance is critical to long-term success."
The challenges and benefits
In his article, Franco goes on to look at the challenges faced when complying with good governance and the intrinsic benefits that this brings.
For more information please contact contact Franco Privitelli [email protected] or visit MGI Malta's member profile page and website.
MGI Europe is part of MGI Worldwide with CPAAI, a top 20 ranked global accounting network and association with 10,000 independent auditors, accountants and tax experts in some 460 locations in almost 100 countries around the world.