Corporate Governance

Definition of Corporate Governance as it relates to Business, Business Law, Business Planning

Corporate Governance refers to the system of rules, practices and processes by which a corporation is directed and controlled. It involves balancing the interests of the many stakeholders in a corporation, such as shareholders, management, customers, suppliers, financiers, government and the community. Corporate governance concerns the relationships among the management, board of directors, controlling shareholders, minority shareholders and other stakeholders, and spans topics such as board composition, executive compensation, audit committees, internal controls, financial disclosure, risk management and compliance with applicable laws and regulations. It is a critical component of business law and planning, ensuring that businesses operate in an ethical, transparent and accountable manner, ultimately contributing to their long-term sustainability and success.

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