Corporate Governance

Definition of Corporate Governance as it relates to Business, Financial Management

Corporate governance pertains to the system of rules, practices, and processes by which a corporation is directed and controlled. It involves the relationships among the company's management, its board of directors, its shareholders, and other stakeholders. Corporate governance also sets out the rights and responsibilities of different participants in the corporation, such as the shareholders, directors, and officers. It provides the structure through which objectives are set, the means of attaining those objectives and monitoring performance are determined. The goal of corporate governance is to align the interests of all stakeholders, to ensure that corporations operate in a transparent, ethical, and accountable manner, and to provide for the long-term success of the corporation while also balancing the interests of its various stakeholders.

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