The chief governance officer (CGO) is normally a senior vice executive reporting to the

CEO A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especiall ...

; however, in the not-for-profit sector, when an organization uses

policy governance Policy Governance, informally known as the Carver model, is a system for organizational governance. Policy Governance defines and guides appropriate relationships between an organization's owners, board of directors, and chief executive. The Polic ...

, the chair of the board often takes on the role of CGO, who is tasked with directing the people,

business process A business process, business method or business function is a collection of related, structured activities or tasks by people or equipment in which a specific sequence produces a service or product (serves a particular business goal) for a parti ...

es and systems needed to enable

good governance Good governance is the process of measuring how public institutions conduct public affairs and manage public resources and guarantee the realization of human rights in a manner essentially free of abuse and corruption and with due regard for th ...

from inside the corporation in support of the board of directors. In some geographies the role is assumed by the

chief counsel Chief may refer to: Title or rank Military and law enforcement * Chief master sergeant, the ninth, and highest, enlisted rank in the U.S. Air Force and U.S. Space Force * Chief of police, the head of a police department * Chief of the boa ...

, in others by a corporate or company secretary. The role is likely to grow in prominence as

corporate governance Corporate governance is defined, described or delineated in diverse ways, depending on the writer's purpose. Writers focused on a disciplinary interest or context (such as accounting, finance, law, or management) often adopt narrow definitions ...

requirements - in voluntary codes or law - grow and mature. The heads of several governance-related functions may report to the CGO, including community relations / public affairs,

corporate strategy In the field of management, strategic management involves the formulation and implementation of the major goals and initiatives taken by an organization's managers on behalf of stakeholders, based on consideration of Resource management, resour ...

, business continuity management, business performance management, compliance management / internal controls,

corporate communication Corporate communication is a set of activities involved in managing and orchestrating all internal and external communications aimed at creating favourable point of view among stakeholders on which the company depends. Riel, Cees B.M. van; Fombru ...

corporate philanthropy Corporate social responsibility (CSR) is a form of international private business industry self-regulation, self-regulation which aims to contribute to societal goals of a philanthropy, philanthropic, activist, or charitable nature by engaging in ...

enterprise risk management Enterprise risk management (ERM) in business includes the methods and processes used by organizations to manage risks and seize opportunities related to the achievement of their objectives. ERM provides a framework for risk management, which typi ...

ethics management Ethics or moral philosophy is a branch of philosophy that "involves systematizing, defending, and recommending concepts of right and wrong behavior".''Internet Encyclopedia of Philosophy'' The field of ethics, along with aesthetics, concerns ma ...

internal audit Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach t ...

investor relations Investor relations (IR) is a strategic management responsibility that is capable of integrating finance, communication, marketing and securities law compliance to enable the most effective two-way communication between a company, the financial co ...

, legal services,

stakeholder management Stakeholder management is a critical component to the successful delivery of any project, programme or activity. A stakeholder is any individual, group or organization that can affect, be affected by, or perceive itself to be affected by a programm ...

and sustainability management. Also, the appointment of a CGO with clout is both a signal to the market that the company takes corporate governance seriously and a way to increase the market value of a firm if, as research by

McKinsey McKinsey & Company is a global management consulting firm founded in 1926 by University of Chicago professor James O. McKinsey, that offers professional services to corporations, governments, and other organizations. McKinsey is the oldest and ...

shows, investors will pay a premium for the stock of well-governed companies. As corporations add the necessary functions, several issues arise. First is the risk that the functions overlap, evolve into silos, create misunderstanding internally and externally and act at

cross purposes ''Cross Purposes'' is the seventeenth studio album by English rock band Black Sabbath, released through I.R.S. Records on 26 January 1994. The album marked the return of Tony Martin as the band's lead vocalist, after the second departure of Ron ...

. Second is the opportunity for enhanced impact through synergy between these functions. Risk managers, compliance officers and business performance managers often need to manage change in order to achieve their objectives. Without a sponsor at top management level their efforts may fail when the magnitude of resistance to change overwhelms their limited powers of influence. Third, the serial introduction of new processes may simply require more attention, time and enthusiasm than line managers can realistically offer. A single phased plan for enabling good governance could mitigate the risks and preempt any wasteful expenditure. Last, the complexity of the interactions between the different functions compounded by the infancy of the new disciplines may require continuous conceptual interpretation for top management and the board. Companies that have appointed CGOs include

Allianz Allianz ( , ) is a German multinational financial services company headquartered in Munich, Germany. Its core businesses are insurance and asset management. The company is one of the world's largest insurers and financial services groups. T ...

Kodak The Eastman Kodak Company (referred to simply as Kodak ) is an American public company that produces various products related to its historic basis in analogue photography. The company is headquartered in Rochester, New York, and is incorpor ...

Krispy Kreme Krispy Kreme, Inc. (previously Krispy Kreme Doughnuts, Inc.) is an American multinational doughnut company and coffeehouse chain. Krispy Kreme was founded by Vernon Rudolph (1915–1973), who bought a yeast-raised recipe from a New Orleans c ...

, Prudential, Telkom, and

Vodacom Vodacom Group Limited is a South-Western African mobile communications company, providing voice, messaging, data and converged services to over 55 million customers. From its roots in South Africa, Vodacom has grown its operations to include ...

.Vodacom Annual Report, 2006
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References

{{Reflist Corporate governance