That is the question everyone is asking themselves these days. But it's difficult truly to understand the term.

Nobody knows where the phrase originated, but the concept is not new. "Good governance" has been around in both political and academic discourse for a long time, referring in a generic sense to the task of running a government, or any other entity for that matter.

Governance means different things to different people. The actual meaning of the concept depends on the level of governance being referred to, the goals to be achieved and the approach being followed.

In broad terms, if good governance is applied to a listed company, we usually expect it to exercise a certain level of control. All business decisions must be monitored and checked, to ensure that no executive abuses his power and that no shareholder receives better treatment than another.

Since oil prices spiked, PTT has been in the public focus. It has been criticised on all fronts. Activists condemn it for failing to return some of its assets to the state. While consumers praise it for delaying retail oil-price increases, other oil companies complain that the delay forces them to sell fuel at a loss.

Then on Tuesday, the Cabinet came up with a proposal to have PTT sell fuel at a special price to the Bangkok Mass Transit Authority and bus operators, in the hope that this would delay another rise in bus fares.

This resolution is interesting in itself, because it prompts a crucial question: what is the current status of the energy company - a private firm or a state agency?

If it is a state agency, the resolution sounds right, for the state should take care of the well-being of all citizens. But if it is a private company, why does the state have the right to tell the company at what price to sell its oil?

Granted, holding more than 50 per cent of PTT's stake, the government does have a major say as the biggest single shareholder. But don't all policy proposals need to be screened by other shareholders?

Does this mean PTT's good-governance practices have been compromised? If so, why has PTT long been widely acclaimed for its governance? PTT president Prasert Bunsumpun has also been personally hailed as the top among top international executives - reminding everyone of his superb talents in governing the company.

As I said, this is a really difficult concept to understand.

achara_d@nationgroup.com