Corporate governance is the system of rules, practices and procedures that guide, control and govern a company. It provides a structure for determining the methods used to achieve corporate goals and monitor performance. Corporate governance involves balancing a range of relationships, interests, and responsibilities among a company's management, board of directors, shareholders, and other stakeholders.
A company's board of directors is the major force in corporate governance. The board is responsible for the governance of the company, including setting the company's strategic goals, providing leadership, overseeing the management of the business, and reporting to shareholders.
See also: Corporate officers
[Last updated in August of 2022 by the Wex Definitions Team]