DUMAGUING, SHANEIA FAYE G.

BR601P

STRATEGIC MANAGEMENT

Explain the concept of corporate governance.

Corporate governance is the word used to describe the goals and methods of company management. An

organization's decision-making process, accountability framework, and power structure are all defined by

its corporate governance. In essence, it is a collection of instruments that help the board and management

operate a company more successfully and efficiently. Corporate governance includes environmental

consciousness, moral conduct, business strategy, remuneration, and risk management. Bad governance

can have a detrimental effect on a company's operations and profits. The laws, regulations, guidelines, and

decisions implemented to guide business conduct are collectively referred to as governance. In addition

to shareholders and proxy advisers being significant stakeholders who can influence governance, a board

of directors is essential to governance. To balance the interests of all stakeholders firms must have the

proper decision-making processes and controls in place. This is the goal of effective governance. Setting

and accomplishing corporate goals while taking the social, legal, and commercial environments into

account is the essence of corporate governance. Stated differently, this idea relates to policies and

procedures that guarantee a business operates in a way that achieves its goals and that its stakeholders

can feel confident in the business. The home of good governance, according to the Corporate Governance

Institute, is essential to raising the caliber of management decisions. The establishment of a sustainable

business requires the capacity for morally sound decision-making.