Stjórnarhættir

Stjórnarhættir is an Icelandic term that translates to "governance" or "management practices." It refers to the system of rules, practices, and processes by which an organization or entity is directed and controlled. This encompasses how decisions are made, who has the authority to make them, and how accountability is ensured. The term is broadly applied, covering the governance of public institutions, private companies, non-profit organizations, and even international bodies.

Effective stjórnarhættir are crucial for maintaining transparency, accountability, and ethical conduct. They establish the framework for relationships between stakeholders, including shareholders, management, employees, customers, and the wider community. In a corporate context, good stjórnarhættir often involve a clear separation of powers between the board of directors and executive management, robust internal controls, and open communication. For public entities, stjórnarhættir are fundamental to democratic principles, ensuring that government bodies serve the public interest and are subject to oversight.

The principles of good stjórnarhættir generally include fairness, responsibility, transparency, and accountability. Adherence to these principles helps to build trust, attract investment, and ensure the long-term sustainability and success of any organization or institution. In Iceland, as in many other countries, there is a continuous effort to improve and adapt stjórnarhættir to meet evolving economic, social, and legal landscapes.