Corporate Governance

What is corporate governance?

Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. 

In simple terms, it describes how different decision-making parties (the Board of Directors, management, and shareholders) share responsibilities, and ensures appropriate levels of accountability, transparency, and conduct.

Key principles of corporate governance

The core principles of corporate governance include:

• Transparency in decision-making and disclosures
• Accountability of the board and management
• Fair treatment for all shareholders
• Alignment of business actions with ethical standards
• Stringent risk management and internal controls

Uses of corporate governance

Corporate governance is used to:

• Guide board oversight and management accountability
• Ensuring transparent and reliable financial reporting
• To protect shareholder rights and stakeholder interests
• Manage business risks and strengthen internal controls
• Support compliance with regulatory frameworks

Examples of corporate governance

Some practical examples of corporate governance include:

• Appointment of independent directors for unbiased oversight
• Holding regular board and committee meetings to review performance and strategy
• Clear ethics and compliance policies
• Transparent financial and sustainability reporting
• Whistleblower mechanisms to report unethical practices