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Strategic Management Accounting by Sean Stein Smith

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CHAPTER 2

Corporate Governance & Sustainability

Corporate Governance

Corporate governance, in essence, represents how organizations interact with internal and external stakeholders. In addition to the methods by which organizations interact with external stakeholders, corporate governance at the board-of-director level also encompasses the strategic thinking and planning process undertaken by the entity. Boards of directors, who hire the senior-level management of the organization, including the CEO and CFO personnel, are ultimately held accountable by the financial shareholders. Viewed in this context, corporate governance is more complicated and multifaceted than simply the actions and interactions taken by the board of directors. Such action ...

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