The “G” in ESG – Wait, Governance Can Be Cool?
- Bonita Labuschagne
- Jul 16
- 2 min read
Okay, we’ve saved the best (and possibly most misunderstood) for last. You’ve met E for Environmental 🌱 and S for Social 🤝… now say hello to G for Governance.
Sounds fancy, right? Maybe even a little yawn? Stick with me—because “Governance” is basically the backbone of a trustworthy business.
If ESG was a house, Governance would be the solid foundation holding everything up.
So, What Is Governance?
In simple terms: it’s how a company is run. The rules, the ethics, the decision-making—it’s all about making sure things are fair, responsible, and transparent.
Think of it like this:
🔍 Who’s in charge, and how are they held accountable?💡 Are decisions made ethically and fairly—or behind closed doors?💸 Are finances managed responsibly? (No dodgy deals, thank you!)🚨 Are there systems in place to stop fraud, corruption, or bad behavior?
Governance is about trust. You want to know that the business you’re buying from—or working with—is walking the talk, not just posting pretty things on Instagram.
Why Is Good Governance So Important?
Because even the greenest, kindest business can fall apart if the leadership is a mess.
✅ It builds trust with customers and investors
✅ It reduces risk (no scandals = no PR nightmares)
✅ It helps companies stay compliant with laws and regulations
✅ It creates long-term stability and success
In short: good governance keeps the business train on the tracks 🚂 (and out of the headlines for all the wrong reasons).
What Does Good Governance Look Like in Real Life?
It’s not all boardrooms and boring reports. Good governance shows up in:
📣 Transparency – Sharing decisions openly and honestly
🧾 Clear policies – From hiring to ethics to sustainability
🧠 Diverse leadership – Different perspectives = smarter decisions
🛑 Saying NO to corruption, discrimination, and shady deals
📊 Regular audits and accountability
📬 Listening to feedback from employees, customers, and communities
It’s basically how a company keeps itself honest and on-track.
In a Nutshell 🥜
The G in ESG is about how a company does business—and whether you can trust them. It’s the guardrails that stop the business from veering off into shady territory.
So, next time you hear “Governance,” don’t think grey suits and legal jargon. Think honest, fair, and future-focused leadership.
And there you have it—the full ESG trio:
🌿 Environmental: caring for the planet
🤝 Social: caring for people
📋 Governance: running a business with integrity
Not so scary after all, right?
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