What is corporate governance?

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Corporate governance is the system of rules practices and processes through which corporations are directed and controlled. The fundamental role of corporate governance is to correspond the interests of the various stakeholders involved within a corporation. The four main cornerstones of corporate governance are, the board of directors, accountability, directors’ remuneration and engagement with shareholders. Governance provides the methodology through which a corporation may pursue their goals and objectives within the framework of the current social, administrative and market environment. Corporate governance attempts to achieve Rights and equitable treatment of shareholders while maintaining the Interests of other stakeholders and manage the Roles and responsibilities of the board while preventing unethical behavior through disclosure of records and transparency.

In 2001-2002, accounting fraud, stock manipulation and Corruption caused the collapse of large corporations such as Enron, World Com, Arthur Anderson and many others. Following these incidents Corporations wanted t...
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