How organisations are directed, controlled, and held accountable.
Corporate governance refers to the system of rules, practices, and processes by which an organisation is directed and controlled. It defines relationships between:
Its main purpose is to ensure accountability, fairness, and transparency in decision-making.
Ensures leaders are responsible for their decisions and performance.
Provides clear and honest information to investors and stakeholders.
Prevents fraud, corruption, and reckless management decisions.
Directors and managers must answer for their actions and decisions.
Open communication of financial and strategic information.
Equal treatment of shareholders and stakeholders.
Acting ethically and complying with laws and standards.
| Structure | Role | Purpose |
|---|---|---|
| Board of Directors | Strategic oversight | Guide long-term strategy and control management |
| Audit Committee | Financial supervision | Ensure financial accuracy and compliance |
| Risk Committee | Risk management | Identify and control business risks |
| Remuneration Committee | Pay & incentives | Align rewards with performance and ethics |
Many major business collapses were caused by poor governance, not bad products.
These cases show why strong governance is essential for trust and long-term survival.
Governance is not only for large corporations. Startups also need structure and accountability.
How organisations are directed, controlled, and held accountable.
Corporate governance refers to the system of rules, practices, and processes by which an organisation is directed and controlled. It defines relationships between:
Its main purpose is to ensure accountability, fairness, and transparency in decision-making.
Ensures leaders are responsible for their decisions and performance.
Provides clear and honest information to investors and stakeholders.
Prevents fraud, corruption, and reckless management decisions.
Directors and managers must answer for their actions and decisions.
Open communication of financial and strategic information.
Equal treatment of shareholders and stakeholders.
Acting ethically and complying with laws and standards.
| Structure | Role | Purpose |
|---|---|---|
| Board of Directors | Strategic oversight | Guide long-term strategy and control management |
| Audit Committee | Financial supervision | Ensure financial accuracy and compliance |
| Risk Committee | Risk management | Identify and control business risks |
| Remuneration Committee | Pay & incentives | Align rewards with performance and ethics |
Many major business collapses were caused by poor governance, not bad products.
These cases show why strong governance is essential for trust and long-term survival.
Governance is not only for large corporations. Startups also need structure and accountability.
PESTEL helps you understand the macro forces around your business idea in a country context. You’ll get risks, opportunities, actions and a severity score.