Maximizing Stakeholders Value through GoodUniversity Governance (GUG) in Higher EducationInstitutions

Higher educations institutions (HEI) should create rela tions with their stakeholders to serve the best interests of the stakeholders (governing board, university executives, administrative staffs, students, parents, employers, and communities) by using a management structure and mechanism within the institutions, this is called Good University Governance (GUG). The reason is the focus of HEI should be long term value creation for the benefit of their stakeholders. HEIs generate revenues from their students, government, or society. According to GUG principles, the institutions will retain the money and the people whom they employed and reinvest them in physical capital, human resources, etc. The university governance should embrace the five fundamental principles of GUG, they are transparency, accountability, responsibility, independency, and fairness. The objective of this paper is to describe the effort to apply GUG principles at Management Department, Maranatha Christian University (MCU), Bandung, Indonesia. GUG is crucial to the effective operation of Management Department, MCU, because GUG secures its success in achieving the vision and mission. It describes about the effective definition and execution of the goals and strategies and secures the in stitutions’ contribution to society wellbeing.