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What is corporate governance?
Corporate governance is a broad-ranging term which, amongst other things, encompasses the rules, relationships, policies, systems and processes whereby authority within organisations is exercised and maintained.
The governance attributes of an organisation are shaped by a variety of factors, both "internal" (eg constitution, organisational policies) and "external" (eg laws, regulations, community expectations). A board of directors plays a pivotal role in influencing an organisation's governance environment.
A common goal for many organisations is to have the most effective governance framework in place that best meets their individual circumstances and needs – helping to drive enhanced organisational performance while at the same time aiding conformance with various requirements (eg the company's constitution, policies, controls and procedures as well as with applicable external regulations and laws).