Corporate governance is the set of structures, practices and procedures which a company employs to manage risk and ensure accountability. Its aim is to provide a blueprint of long-term success while reducing the possibility of losses in financial terms, waste, risks and corruption.

The primary guiding principles of corporate governance are fairness, diversity and transparency. These principles are derived from the notion that all stakeholders including employees and shareholders should be treated equally and equally by the management and board. This includes establishing and sustaining a formal and transparent process for selecting, supervising and monitoring the key board members and executives’ performance and making sure that the important executives’ and board compensation with the company’s long-term goals and providing the necessary supervision to prevent conflicts of interests.

Transparency refers to being transparent and willing to share accurate information with all stakeholders including shareholders. This includes an organisation’s willingness to share both good and bad information. It also means sharing this information on a regular basis board governance software products in 2022 and making it readily accessible.

Based on the type of business various boards and committees could have a role to play in the corporate governance. However, it is typically the responsibility of the board to establish and oversee a formal process for governance. If the structure of the board combines the chair and CEO as well as appointing the director who is the leader or presiding. The director should be independent of chair and be appointed for a term set by the board. The director in charge must also implement the policies and procedures for governance that conform to the regulatory, legal, and corporate culture of the business.