Corporate governance refers to a system of practices, policies, and procedures that guide the conduct of business. These systems and procedures serve as guidelines for accountable and ethical decision making in organizations.

There is no single “best” model, but the crux of corporate governance is the relationships an organization has with its stakeholders, including shareholders and investors, the board of directors, management, employees, customers, suppliers, government, and financial institutions, as well as communities affected by the activities of the business. These stakeholders exist in a mutually reinforcing relationship, and aligning and balancing their interests, rights, and responsibilities is an important function of corporate governance.

This entry discusses the relevance of corporate governance and maps out the primary actors and the mechanisms and frameworks of corporate governance. Using ...

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