| About Corporate Governance | |
| Corporate-governance Definition History Parties To Corporate Governance Principles Mechanisms And Controls Systemic Problems Of Corporate Governance Role Of The Accountant Regulation Corporate Governance Models Around The World Codes And Guidelines Corporate Governance And Firm Performance Attention To Corporate Governance Foot Notes References See Also External Sources |
Corporate-governance
Corporate governance is the set of processes, customs, policies, laws and institutions affecting the way a
corporation is directed, administered or controlled. Corporate governance also includes the
relationships among the many players involved (the stakeholders) and the goals for which the corporation is governed. The
principal players are the shareholders, management and
the board of directors. Other stakeholders include employees, suppliers, customers,
banks and other lenders, regulators, the environment and the community at large. Corporate governance is a multi-faceted subject. An important part of corporate governance deals with accountability,
fiduciary duty and mechanisms of auditing and control. In this sense, corporate governance
players should comply with codes to the overall good of all constituents. Another important focus is economic efficiency, both
within the corporation (such as the best practice guidelines) as well as externally (national institutional frameworks). In this
"economic view", the corporate governance system should be designed in such a way as to optimize results. Some argue that the
firm should act not only in the interest of shareholders, but also of all the other stakeholders. Recently there has been considerable interest in the corporate governance practices of modern corporations, particularly since
the high-profile collapses of firms such as Enron Corporation. |