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What is Corporate Governance?

Corporate governance refers to the system of rules and regulations, practices, processes, and structures by which a company is directed, controlled, and operated. It encompasses the relationships among various stakeholders, including shareholders, management, the board of directors, employees, customers, suppliers, and the community at large.

Effective corporate governance ensures transparency, accountability, fairness, and ethical behavior in all aspects of corporate operations. It involves defining the roles and responsibilities of each stakeholder, establishing mechanisms for decision-making and oversight, and ensuring compliance with laws, regulations, and ethical standards. Ultimately, corporate governance aims to enhance the long-term sustainability and value creation of the organization while protecting the interests of shareholders and stakeholders.

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