What is the purpose of corporate governance?

The purpose of corporate governance is to ensure that a company is being managed in a responsible and ethical manner. Corporate governance refers to the rules, regulations, and procedures that dictate how a company is structured, how decisions are made, and how it is accountable to its shareholders, employees, customers, creditors, suppliers, and other stakeholders. In Washington, corporate governance is designed to protect shareholders from the decisions of corporate management. Shareholders need assurance that their investments in the company are being safeguarded, and that the company is being operated in the best interests of shareholders. Corporate governance also allows for checks and balances within the company, to ensure that decisions meet the company’s stated objectives. Corporate governance helps to ensure that the company is subject to public disclosure requirements, so that shareholders have access to the information necessary to make informed decisions. In addition, corporate governance protects the company from unethical or illegal activities, by providing a framework for oversight, accountability, and compliance. Lastly, corporate governance helps to attract and retain investors by providing assurance that the company is well-governed and managed responsibly. By ensuring the company is well run, it helps to protect shareholders’ investments and maintain the company’s overall good standing.

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What is the purpose of corporate governance?

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