The Importance of Good Corporate Governance
Corporate governance refers to a system of practices or rules used to direct or rule a company. It helps organizations achieve their goals by defining the relationship between management, shareholders, stakeholders, and the board of directives. Good corporate governance helps create a sustainable business and reflects the ethos of a company, signalling that the management’s interest aligns with the stakeholders. In a nutshell, corporate governance is all about making the business better while complying with the rules. When it comes to the benefits of good corporate governance, publicly listed, companies are the ones that are most talked about. But, it supports a healthy corporate culture in non-listed companies too. Read on to know how a good corporate governance framework is important for an organization.