15.1 Corporate governance – Definition and objects

Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. It encompasses the relationships and responsibilities among a company’s board of directors, management, shareholders, and other stakeholders.

Objectives of corporate governance

1. To develop better and most efficient management of business organisation,
2. To develop more applicable criteria towards performing the task,
3. Holding the balance between social and economic goals,
4. To encourage the efficient use of scarce resources,
5. To ensure perspective work place management,
6. To develop the business transactions to be based on values,
7. To develop the confidence and interest among the business men and society at large towards the social reforms,