Definition
Corporate Governance is the system of principles, roles and mechanisms that defines how an organisation is directed, how Decisions are made and how oversight is exercised.
Human Explanation
It establishes who may make Decisions, who provides oversight and how the organisation is directed and held accountable.
Why it Matters
Transparent governance builds Stakeholder trust, reduces organisational and legal Risk and supports responsible Decision-making.
Conceptual Boundary
Corporate Governance is not limited to large companies. Its formal requirements depend on organisational form and applicable Law, while its principles can also support smaller organisations.
Practical Perspective
A useful governance model makes roles, Authority, Accountability, Decision paths and oversight mechanisms explicit.