Corporate Governance

Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. It encompasses the mechanisms through which organizations, particularly corporations, are operated and regulated, focusing on the relationships between stakeholders, including the board of directors, management, shareholders, and other parties such as employees, customers, suppliers, and the community.

Good corporate governance aims to provide a framework for attaining a company’s objectives while ensuring accountability, fairness, and transparency in the company’s relationship with its stakeholders. It involves conforming to applicable laws and regulations, establishing ethical standards, and implementing internal controls and risk management strategies to promote organizational integrity and operational effectiveness.

Key elements of corporate governance include board structure and composition, the roles and responsibilities of management, shareholder rights, and the processes for decision-making. Strong corporate governance practices can enhance company performance, foster trust with stakeholders, and protect against misconduct and mismanagement.