The term corporate governance was introduced during the 80s and 90s to describe best practices for listed companies.
It followed the collapse of various high-profile company failures in the UK and elsewhere. But what does the term mean, and what does it look like?
Defining corporate governance
Corporate governance is about the systems and controls within a firm.
We sometimes hear reference to the four Ps relating to the management of people, processes, performance, and purpose.
Basically, it’s about how a firm manages itself, and the key question is: how well does a firm manage its affairs?
The evolution of corporate governance reflects our changing attitude towards companies and expectations. The bar continues to be raised, and firms need to meet those challenges.
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