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Corporate Governance

   Also found in: Legal, Acronyms, Wikipedia, Hutchinson 0.02 sec.
Corporate Governance
The manner in which the stakeholders in a corporation relate to one another. Corporate governance has a positive connotation and a company with "good" corporate governance is said to be a company in which all stakeholders relate to each other in a positive way. Good corporate governance is considered an important quality of sustainable growth for a company; that is, if the shareholders, management, and employees all fulfill their fiduciary responsibilities to one another, the corporation is thought to have a greater likelihood of success. Corporate governance is laid out in the corporation's charter and other applicable documents.


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Corporate governance frameworks, when effective, can help organizations avoid potential compliance violations while promoting prosperity, consumer confidence and public trust.
The author's insight that most individual investors are not focused on corporate governance when selecting a stock is indeed true and is the case for equities traders as well.
The European Commission, the institution responsible for initiating European legislation, consulted throughout the summer on its 24-point action plan called "Modernizing Company Law and Enhancing Corporate Governance in the EU.
 
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