Despite their ubiquity in boardrooms today, business governance remains a fancy and difficult topic. It’s a multifaceted responsibility, often pass on across departments, including human resources, finance, procurement and of course legal counsel and conformity. Achieving very good governance is not easy in a world where managers will be consumed by unrelenting pressure to meet quarterly earnings, activists are poised to leap following any deficiency, and attorneys are ready to record lawsuits after a big share drop.
Corporate and business governance certainly is the body of policies and practices that dictate how a company’s market leaders make decisions and respond, typically with an focus on transparency, accountability and ethical business practice. It is often the responsibility of a table of company directors, which includes important shareholders, founders and executives as well as self-sufficient directors (who do not reveal the same ties to the company).
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