What is Corporate Governance?

Corporate governance refers to the systems, principles, and processes by which companies are directed and controlled. It's like the rulebook for how big organizations make decisions, stay ethical, and keep everyone honest.

Key Principles

• Accountability: Leaders must answer for their actions.
• Transparency: Clear, open communication with stakeholders.
• Fairness: Treating all stakeholders equally.
• Responsibility: Making sure the company meets its legal and ethical obligations.

Structures

Most corporations have a board of directors, audit committees, and other checks to ensure decisions are made in the best interests of shareholders and society.

Why It Matters

Good corporate governance helps prevent fraud, boosts investor confidence, and ensures long-term sustainability.

Real-World Scenario

Imagine a company faces a scandal due to poor oversight. With strong governance, they'd have controls to catch issues early, minimizing damage.