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Corporate Governance

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Corporate Governance
The relationship between all the stakeholders in a company.
    
This includes the shareholders, directors, and management of a company, as defined by the corporate Charter, bylaws, formal policy, and rule of law. Ethical companies are said to have excellent corporate governance. An important theme of corporate governance is to ensure the accountability of certain individuals in an organization through mechanisms that try to reduce or eliminate the principal-Agent problem. A related but separate thread of discussions focus on the impact of a corporate governance system in economic efficiency, with a strong emphasis on shareholders welfare. There are yet other aspects to the corporate governance subject, such as the stakeholder view and the corporate governance models around the world.
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