Corporate governance

Corporate Governance

Corporate governance (/kɔːr.pər.eɪt ˈɡʌv.ən.əns/) is a system of rules, practices, and processes by which a company is directed and controlled. It involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government, and the community.

Etymology

The term "corporate governance" is derived from the Latin word "gubernare," which means to steer and was used to refer to the act of governing, steering, or piloting a ship. In the context of business, it refers to the set of internal rules and policies that determine how a company is directed and controlled.

Related Terms

• Board of Directors: A group of individuals elected by the shareholders of a corporation to oversee the management and to protect the shareholders' assets.
• Shareholders: Individuals or entities that legally own one or more shares of stock in a public or private corporation.
• Stakeholders: Any person, organization, social group, or society at large that has a stake in the business.
• Management: The process of dealing with or controlling things or people, especially in a company or organization.
• Corporate Social Responsibility (CSR): A self-regulating business model that helps a company be socially accountable—to itself, its stakeholders, and the public.

See Also

• Business Ethics
• Corporate Law
• Corporate Strategy
• Organizational Structure

External Links

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