Corporate Governance is business-driven and controlled essay
Corporate governance is the system under which companies are managed and controlled. The power structure, accountability structure and decision-making processes of an organization are part of it. Corporate governance is the management, control and evaluation of your organization. It involves setting out your organization's governance structures and principles by a board of trustees to identify the distribution of rights and responsibilities among various stakeholders and to cultivate a corporate culture of integrity. The definition of corporate governance according to the London Stock Exchange Cadburry committee is the system by which the companies are managed and controlled Reema, amp Fulbag, 2009. Principles of corporate governance emphasize the need for proper exposure of the company to the relevant stakeholders, in the correct order. Corporate governance has re-emerged as one of the most discussed business topics in the 21st century following the bankruptcy of some of the major publicly traded companies Banks, 2004. Corporate scandals at major companies such as Enron and WorldCom resulted in billions of dollars in losses for investors Kang et al. 2007. Corporate governance has become a topic of broad public interest as the power of institutional investors has increased and the impact of companies on society has grown. Still ideas on how. Corporate governance is the set of processes, customs, policies, laws and institutions that influence the way a company is managed, managed or controlled. It also includes the relationships between the many stakeholders involved and the objectives for which the company is governed. Corporate governance is the system by which,