Corporate governance: - the objectives, principles and significance

Corporate governance is the concept of governing a company in the context of certain principles, systems and processes. It involves some sets of rules and regulations that monitor and control the relationship between various bodies of the company like the management, directors’ board, the shareholders and stakeholders. Primarily these practices prevent and mitigate the conflict and ambiguities of interests involving stakeholders. The constituent bodies are provided with comprehensive guidelines catering the finest aspects of business strategies, shares, rights, policies, laws and institutions that directly help in the efficient and effective control of business.

The main objective of corporate governance remains the achievement of goals and execution of the strategies, in a manner that adds value and benefits to the company and stakeholders, for a long-term relationship. The facilitation of governance policy with principles Classification Review, which include integrity, transparency and fairness, ensures the better control and direction of the company growth. It states the accountability and responsibility of stakeholders, necessary disclosures and decisions, the laws of land and property and the commitment to conduct business in a fair and an ethical way. It is also observed that the corporate governance has been increasingly playing a significant role in the decision of foreign companies to invest their money on Indian products and institutions.

The principles of Enterprise Agreements governance in a corporate sector include the independent and external audit, transparency, legality and business ethics. Apart from the being beneficial to companies and stakeholders corporate governance also affects the national economy. The increased corporate values of companies at the global front help in maintaining the better image of a nation at international business platform. Overseas relationships and the currency value at foreign exchange also are improved because of better governance. Corporate facilitation ensuring good administration makes the life easy for the corporate world and thus, investors, executors and customers - all enjoy hassle-free business deals.