Corporate governance is important

The purpose of corporate governance is to facilitate effective, entrepreneurial and prudent management that can deliver the long-term success of the company.
Corporate governance is the system by which companies are directed and controlled.
Boards of directors are responsible for the governance of their companies.

Good corporate governance helps companies build trust with investors and the community. As a result, corporate governance helps promote financial viability by creating a long-term investment opportunity for market participants. Communicating a firm's corporate governance is a key component of community and investor relations.

Better governance ensures enhanced corporate performance and better economic results. Corporate governance lays the foundation for the behaviour of the company, the utilization of resources, product/service innovation and overall corporate strategies.

Corporate governance is important for several reasons. These many including minimizing agency problems, protect a company’s stakeholders, attracting investors, and much more.

Categories