What does the term 'corporate governance' mean?

Corporate governance refers to the set of rules, practices and processes used by corporations to manage the company and promote its goals. It is based on the idea that corporations should be managed for the benefit of shareholders, not just the executives or employees. Corporate governance covers a wide range of areas, such as board composition and structure, shareholder rights, executive compensation, internal auditing and compliance, and shareholder voting. In California, corporate governance is monitored by the California State Board of Corporate Governance (CSBOG), which is responsible for enforcing corporate governance regulations. The CSBOG is responsible for making sure companies follow their corporate governance plans and rules. They can also impose penalties on corporations if they are found to not be following their plans properly. In addition to the rules enforced by the CSBOG, the California Corporations Code also outlines regulations for corporate governance. This includes the rights of stockholders, the responsibilities of the board of directors, and other rules for corporate governance. Overall, corporate governance is an important part of running a successful business. It helps to ensure that companies are managed and run ethically, with the best interests of their shareholders and stakeholders in mind. By following corporate governance rules and regulations, companies are better able to pursue their goals while maintaining their legal and ethical obligations.

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What does the term 'corporate governance' mean?

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