Question

What does it mean when we say that corporate governance is about Individual, companies, society, government, controls, investments, efficiency and transparency

Answer 1

Corporate Governance can be defined as a system in an organization that comprises rules, policies, practices to regulate the organization. At the same time, Corporate Governance takes into consideration the interests of the stakeholders, shareholders, government, society, and customers. This is the primary reason we say that corporate governance is about individuals, controls, investment, efficiency, and transparency.

Governance in the organization is to make sure that every individual practice the policies and regulations and the decision-making is transparent. When there is transparency in the decision-making process, all the interests of the stakeholders(shareholders, customers, employees, suppliers) are considered and protected. This also increases accountability, stability financially, and business integrity.

The investments made by investors are also considered and Corporate governance ensures there is a fair return for the investors through policies. All these vital decisions are made by the board of directors in the organization.

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