Corporate Governance
Corporate governance encompasses the framework and practices governing how companies are managed and the purposes they serve. It delineates an organization’s power structure, accountability mechanisms, and decision-making processes. Essentially, it comprises a set of tools enabling management and the board to operate an organization efficiently and effectively. Key components of corporate governance include environmental awareness, ethical conduct, corporate strategy, compensation, and risk management.
The G20/OECD Principles of Corporate Governance, revised in 2023, serve as an international benchmark for corporate governance. These principles help policymakers in evaluating and improving the legal, regulatory, and institutional framework for corporate governance. Good corporate governance fosters an environment of trust, transparency, and accountability crucial for nurturing sustainable growth, long-term investment, financial stability, and business integrity. It underpins stronger economic growth and contributes to more inclusive societies.