22 Corporate governance and whistleblowing
‘The real mechanism for corporate governance is the active involvement of the owners.’
Louis Gerstner Jr, former CEO and chairman IBM
In a nutshell
Corporate governance refers to the system by which companies are managed (i.e. directed and controlled). ‘Good’ corporate governance systems prevent directors from making and taking decisions that benefit themselves to the detriment of shareholders and others.
Countries around the world have developed corporate governance regulations. In the UK, guidance is focused on directors (leadership, effectiveness and remuneration), board accountability (risks and going concern) and relations with shareholders (‘stewardship’). Guidance also covers disclosure of ...