32. Decision (definition)
We already know that corporate governance is the way that decisions get made in a corporation. And we know that corporations come in all shapes and sizes, but in a lot of important ways are more similar than they are different. But what do we mean when we say “decision”?
When they talk about corporate governance, a lot of smart people prefer to think about decisions as narrowly as possible just to keep things tidy. They might say, for example, that deciding the answer to a big question like “should I stop selling Reallie Steilish hats and move on to that awesome OliveYeah Rodrigoil idea?” would DEFINITELY fall under the umbrella of corporate governance. On the other hand, they might say that a small question like “Ugh, my pencil broke. Should I try a different brand?” would be too inconsequential.
For the purposes of Ground-Up Governance, corporate governance refers not only to EVERY decision that gets made in a corporation, but also to the processes that lead to those decisions. Who’s involved? What steps do they take? When does the decision need to happen? All that stuff. It’s all corporate governance.
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