Business Ethics and Corporate Governance, Second Edition

WHAT IS CORPORATE GOVERNANCE?

Corporate governance is typically perceived by academic literature as dealing with ‘problems that result from the separation of ownership and control’. From this perspective, corporate governance would focus on: the internal structure and rules of the board of directors; the creation of independent audit committees; rules for disclosure of information to shareholders and creditors; and control of the management. Figure 13.1 explains how a corporation is structured.

Definitions of Corporate Governance

The concept of corporate governance sounds simple and unambiguous, but when one attempts to define it and scan available literature to look for precedence, one comes across a bewildering variety of perceptions behind ...