Corporate governance

Mechanisms, processes and relations by which corporations are controlled and operated

Corporate governance refers to the mechanisms, processes, practices, and relations by which corporations are controlled and operated by their boards of directors, managers, shareholders, and stakeholders. It defines how power and responsibilities are distributed within a company, how decisions are made and how performance is monitored. Effective corporate governance is essential for ensuring accountability, transparency and long-term sustainability of organizations which is seen especially in publicly traded companies.

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