Corporate Governance
The system of rules, practices, and processes by which a company is directed and controlled, often scrutinized when entering a new market with different legal and regulatory frameworks.
Implications
The system of rules, practices, and processes by which a company is directed and controlled, including the roles of the board of directors, management, and shareholders, essential for accountability and ethical conduct.
Example
Example: A publicly traded company enhances its corporate governance by adopting stricter board oversight practices and implementing a comprehensive code of ethics.
Related Terms
Different from management, which involves day-to-day operations, corporate governance focuses on the overarching framework that ensures accountability and proper conduct within the organization.
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