Corporate Governance in the Aftermath of the Global Financial Crisis, Volume IV

CHAPTER 3

Corporate Governance of Private Companies and Not-For-Profit Organizations

Introduction

The effective governance of private and not-for-profit organizations (NPOs) is of great importance to the owners and stakeholders of such organizations. The primary role of governance in private and NPOs is to ensure that the organization is run and managed effectively, and its resources are safeguarded and used efficiently to benefit its stakeholders. There are more similarities than differences between corporate governance measures and practices of for-profit organizations and private and NPOs. The board of directors of private companies and the board of trustees of NPOs set an appropriate tone at the top in promoting competency and integrity within ...