Corporate Governance

Corporate governance is the collection of structures, processes, and relationships that control and operate businesses. Governance frameworks and principles define the allocation of rights and obligations among the different corporate members and provide the rules and procedures for decision taking in corporate matters. Corporate governance is important because of the likelihood of stakeholder conflicts of interest, especially between shareholders and senior management or between shareholders. Organizational governance encompasses the mechanisms by which organizational priorities are set and achieved within the social, regulatory, and business climate. This include tracking organizational behavior, strategies, procedures, and decisions, their employees, and the stakeholders affected. Practices in corporate governance can be seen as efforts to balance stakeholder interests.