Corporate governance involves the structures, practices and procedures an organization employs to ensure accountability and control risk. Its goal is to provide an outline for long-term success while decreasing the potential for financial losses, waste, risks and corruption.

Transparence, fairness, diversity and fairness are the main principles of corporate governance. These principles stem from the belief that all stakeholders, including shareholders and employees, must be treated fairly and equally by the management and board. This means establishing, maintaining and setting up a formal and transparent process to choose and monitor key executive and board members' performance. It is also about ensuring that the compensation of key executives and the board is check out the post right here aligned to the long-term interest of the business and ensuring that they have the proper supervision to prevent conflicts of interest.

Transparency refers to being transparent and willing to provide accurate information to all stakeholders, including shareholders. This includes the willingness of an organization to share both good and negative news. This includes sharing information regularly and making it easily accessible.

Depending on the company type various boards and committees could have a role to play in the corporate governance. It is the responsibility of the board to establish and oversee a formal governance system. If the structure of the board is a combination of the chair and the CEO and the CEO, it is also the responsibility of the board to appoint the lead or presiding directors. It should be separate from the chair, and have a set term. The director in charge is responsible for implementing governance policies and procedures that are in line with the company's legal, regulatory and cultural environment.