What is corporate governance and why is it important?

What is corporate governance and why is it important?

Corporate governance refers to the systems and processes that direct and control a company. It's important because it ensures accountability, fairness, and transparency in a company's relationship with its stakeholders.

Can you explain the key principles of corporate governance?

The key principles include accountability, transparency, fairness, and responsibility. These principles help in building trust and ensuring ethical decision-making.

How does corporate governance affect company performance?

Good corporate governance can enhance company performance by improving decision-making, reducing risks, and increasing investor confidence.

What are some common corporate governance structures?

Common structures include a board of directors, audit committees, and various governance policies that guide the company's operations.

What are the consequences of poor corporate governance?

Poor corporate governance can lead to financial losses, legal issues, and damage to a company's reputation, ultimately affecting its sustainability.