corporate governance
Business leadership framework
Corporate governance is the system of rules, practices, and processes by which a company is directed and controlled.
It defines how power and accountability are distributed among shareholders, the board of directors, and management.
Good corporate governance balances the interests of stakeholders—investors, employees, customers, and the community—while ensuring transparency and ethical conduct: The scandal exposed failures in corporate governance.
Poor governance can lead to fraud, mismanagement, or collapse.
- board of directorsGoverning body of organization
- shareholdersOwners of company stock
- auditsFormal account inspections
- executivesSenior corporate officers
- transparencyState of being see-through
fiduciary duty · shareholder activism · accountability · whistleblower · succession planning · internal controls · performance evaluations · shareholder rights · risk management · voting · boardroom · seat at the table · fairness · environmental sustainability · bylaws · oversight · rubber stamp · proxy
- reformreform movement, reform movements, reform party, reformer, reformist
- corporateCEO, office, CFO, cubicle, COO
- boardroomconference table, board members, chairman, chairperson, directors
- departmentsdepartment, HR department, finance department, legal department, marketing department
- corporate financecost of capital, investment, capital markets, NPV, debt financing
- corporate strategymergers, acquisitions, divestitures, divestiture, synergies
corporate governanceanarchy
Disorder from absent authority
misgovernance · one-man rule · lawlessness · corporate misconduct · unaccountability
corporate governanceunaccountability
Absence of obligation to explain
lawlessness · corruption · self-dealing · kleptocracy · opacity