Corporate Governance is a regulatory framework for monitoring a company and making sure business is conducted in a proper way. It's more about making certain that the interests of shareholders and stakeholders don't conflict with the executives'. Allowing external auditing systems and following legislation intended to regulate the way that business should be conducted is widely encouraged for good corporate governance. Therefore, the framework is decisively defined by company ownders and lawmakers. Company-specifc corporate governance in its entirety consists of relevant laws, directives, corporate philosophy and business practices.
So far there is no single definition nor understanding for corporate governance or what it exactly means or includes. The general understand is that it is a set of international and national laws, regulations, values and principles aimed at organisations and intended to define how they should be led and monitored.
Good corporate governance is responsible for guaranteeing the transparency of the company and on the long term ensuring that the organisation's interests are aligned with those of citizens, society,shareholders and other interest groups which are affected by the company's core business.
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