What is the purpose of corporate governance?

The purpose of corporate governance is to set out the rules and regulations for how a corporation is run and make sure those rules are followed. Corporate governance in West Virginia establishes and maintains the integrity of a company’s financial and operational activity. It also provides protection to the company’s stakeholders, including owners, directors, officers, and employees. Corporate governance helps to ensure a company’s accountability and transparency, meaning the company is clearly stating its objectives and goals, as well as open and honest in their financial reports. Corporate governance also sets a standard for ethical behavior within the company. This means that all employees and board members should act in the company’s best interests, and not their own. Additionally, corporate governance is responsible for setting limits for management’s risk-taking, in order to ensure that the company’s goals are not compromised. It also provides a framework for developing the company’s strategy, as well as making sure that the company is not exposed to any risks that cannot be managed or controlled in the long-term. Ultimately, the purpose of corporate governance is to protect the interests of all the stakeholders involved and make sure that the company is operating in an ethical and responsible manner.

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What is the purpose of corporate governance?

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