Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way

a corporation (or company) is directed, administered or controlled. Corporate governance also includes
the relationships among the many stakeholders involved and the goals for which the corporation is
governed. The principal stakeholders are the shareholders, the board of directors, employees,
customers, creditors, suppliers, and the community at large.

Process-A business process or business method is a collection of related, structured activities or tasks
that produce a specific service or product (serve a particular goal) for a particular customer or customers

Custom in law is the established pattern of behavior that can be objectively verified within a
particular social setting. A claim can be carried out in defense of "what has always been done
and accepted by law." Customary law exists where:

1. a certain legal practice is observed and

2. the relevant actors consider it to be law

A policy is typically described as a principle or rule to guide decisions and achieve rational
outcome(s). Policy or policy study may also refer to the process of making important organizational
decisions, including the identification of different alternatives such as programs or spending
priorities, and choosing among them on the basis of the impact they will have. Policies can be
understood as political, management, financial, and administrative mechanisms arranged to reach
explicit goals.

law[4] is a system of rules, usually enforced through a set of institutions. "The rule of law is better
than the rule of any individual." [6

An institution is any structure or mechanism of social order and cooperation governing the behavior
of a set of individuals within a given human community. Institutions are identified with a social
purpose and permanence, transcending individual human lives and intentions, and with the making
and enforcing of rules governing cooperative human behavior. [1]

A corporation is a formal business association with a publicly registered charter recognizing it

as a separate legal entity having its own privileges, and liabilities distinct from those of its
members.[1] There are many different forms of corporations, most of which are used to conduct
business.

Corporations exist as a product of corporate law, and their rules balance the interests of the
management who operate the corporation, creditors, shareholders, and employees who contribute
their labor.[2] In modern times, corporations have become an increasingly dominant part of life.

An important (but not universal) feature of a corporation is limited liability. If a corporation fails,
shareholders normally only stand to lose their investment, and employees will lose their jobs, but
neither will be further liable for debts that remain owing to the corporation's creditors.

Despite not being natural persons, corporations are recognized by the law to have rights and
responsibilities like natural persons ("people"). Corporations can exercise human rights against
real individuals and the state,[3] and they are often responsible for human rights violations.[4] Just
as they are "born" into existence through its members obtaining a certificate of incorporation,
they can "die" when they are "dissolved" either by statutory operation, order of court, or
voluntary action on the part of shareholders. Insolvency may result in a form of corporate 'death',
when creditors force the liquidation and dissolution of the corporation under court order,[5] but it
most often results in a restructuring of corporate holdings. Corporations can even be convicted of
criminal offenses, such as fraud and manslaughter.[6]

governance is the activity of governing. It relates to decisions that define expectations, grant
power, or verify performance. It consists either of a separate process or of a specific part of
management or leadership processes. Sometimes people set up a government to administer these
processes and systems.

In the case of a business or of a non-profit organisation, governance relates to consistent

management, cohesive policies, guidance, processes and decision-rights for a given area of
responsibility. For example, managing at a corporate level might involve evolving policies on
privacy, on internal investment, and on the use of data.

In terms of distinguishing the term governance from government - "governance" is what a

"government" does. It might be a geo-political government (nation-state), a corporate
government (business entity), a socio-political government (tribe, family, etc.), or any number of
different kinds of government. But governance is the kinetic exercise of management power and
policy, while government is the instrument (usually, collective) that does it. The term
government is also used more abstractly as a synonym for governance, as in the Canadian motto,
"Peace, Order and Good Government".