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What is corporate governance & why is it important?

Corporate governance is altogether different from the daily operational decisions and activities that are executed by the management of an organization. Corporate governance is the domain of the Board of Directors, as opposed to its management team (such as the CEO and other C-suite executives).

What does corporate governance look like?

More broadly, an organization’s ability to demonstrate compliance with all legal and regulatory requirements, as well as its ability to operate ethically (meaning behavior that is governed by moral principles), all fall within the scope of the corporate governance function. A relatively standard organizational structure typically looks like this:

What is a corporate governance system?

Corporate governance is a system that guides the conduct of the people within an organization, as well as the direction of the organization itself. Corporate governance is altogether different from the daily operational decisions and activities that are executed by the management of an organization.

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