Corporate governance is defined as the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled. (Wikipedia)
While corporate governance relates to the way in which a company is governed, a separate and related concept - corporate social responsibility - refers to methods companies use to ensure that their operations are ethical, legal and supportive of public interest.
Corporate governance has gained public attention in the aftermath of the recent financial and economic crisis and the global recession. This upsurge in interest resulted from a variety of factors:
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deregulation of business and industry
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a new ethos demanding that companies obey the laws of their countries
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an increasing awareness of the rights of shareholders, customers and other stakeholders
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globalization, resulting in greater awareness and scrutiny of the corporate supply chain
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executive compensation scandals and compensation structures that rewarded risk-taking
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examples of directors' conflict of interest
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falsification of accounting statements
Several corporate governance cases are explored in this guide.
