CORPORATE GOVERNANCE

What Does Corporate Governance Mean?

The relationship between all the stakeholders in a company. This includes the shareholders, directors,
and management of a company, as defined by the corporate charter, bylaws, formal policy and rule of
law.

nvestopedia expIains Corporate Governance
Ethical companies are said to have excellent corporate governance.

OR


CorporaLe governance ls a Lerm LhaL refers broadly Lo Lhe rules processes or laws by
whlch buslnesses are operaLed regulaLed and conLrolled 1he Lerm can refer Lo
lnLernal facLors deflned by Lhe offlcers sLockholders or consLlLuLlon of a corporaLlon
as well as Lo exLernal forces such as consumer groups cllenLs and governmenL
regulaLlons
.
A well-deIined and enIorced corporate governance
provides a structure that, at least in theory, works Ior the beneIit oI everyone
concerned by ensuring that the enterprise adheres to accepted ethical standards
and best practices as well as to Iormal laws. To that end, organizations have been
Iormed at the regional, national, and global levels.
In recent years, corporate governance has received increased attention because oI
high-proIile scandals involving abuse oI corporate power and, in some cases, alleged
criminal activity by corporate oIIicers. An integral part oI an eIIective corporate
governance regime includes provisions Ior civil or criminal prosecution oI individuals
who conduct unethical or illegal acts in the name oI the enterprise.