Corporate governance is the mechanisms, processes and relations by which corporations are controlled and directed. Corporate governance includes the international corporate governance marc goergen pdf through which corporations’ objectives are set and pursued in the context of the social, regulatory and market environment. Governance mechanisms include monitoring the actions, policies, practices, and decisions of corporations, their agents, and affected stakeholders. Corporate governance practices are affected by attempts to align the interests of stakeholders.
Corporate scandals of various forms have maintained public and political interest in the regulation of corporate governance. Their demise led to the enactment of the Sarbanes-Oxley Act in 2002, a U. In contemporary business corporations, the main external stakeholder groups are shareholders, debtholders, trade creditors and suppliers, customers, and communities affected by the corporation’s activities.
Internal stakeholders are the board of directors, executives, and other employees. Much of the contemporary interest in corporate governance is concerned with mitigation of the conflicts of interests between stakeholders.