What is the role of corporate governance?
Corporate governance describes an organization’s central rule making body. It’s responsible for developing laws and processes used for implementing the organization’s mission and goals. Members of the rule making body are responsible for determining an organization’s overall direction with clear instructions for management to implement and employees to carry out.CompositionThe rule-making body is generally comprised of people with a universal stake in the success of the organization. In addition, it’s common for members to have expertise in leadership and the execution of ideas, as well as a background in finance. A core function of corporate governance is to make sure that the organization is financially solvent.ExamplesBoards of directors, corporate shareholders and consumer watch dog groups are examples of corporate governance structures.FeaturesCorporate governance bodies can be internal or external or both. An internal board of directors, for example, is free to make decisions wit
