What is Corporate Governance?

In Corporate Governance each and every participants like company board members, managers, shareholders and other stakeholders, is allotted certain rights and responsibilities in the company.

The main aim of the Corporate Governance is to ensure a high standard of accountability in company or an organization at every level so that any possible Corporate Scandal is minimized.

A good Corporate Governance is necessary for making the company as well as the countries economy stronger. A good Corporate Governance helps in increasing the foreign investments in a country, increasing the company performance, enhancing the company image in the market, higher share performance and reduced financial scandals.

The Corporate Governance makes an organization or the company responsible for maintaining the transparency in their action, makes director accountable for each and every type of decisions, director is made responsible for performing his duties honestly and every shareholder must be treated fairly.

According to Corporate Governance every company is suppose to be audited internally as well as by some external agencies which is approved by the country for doing so. However the rules and regulations involved in the Corporate Governance differ from country-to-country.