corporate governance

Corporate governance is a term that refers broadly to the rules, processes, or laws by which businesses are operated, regulated, and controlled...

Corporate governance is a term that refers broadly to the rules, processes, or laws by which businesses are operated, regulated, and controlled. The term can refer to internal factors defined by the officers, stockholders or constitution of a corporation, as well as to external forces such as consumer groups, clients, and government regulations.

A well-defined and enforced corporate governance provides a structure that, at least in theory, works for the benefit of everyone concerned by ensuring that the enterprise adheres to accepted ethical standards and best practices as well as to formal laws. To that end, organizations have been formed at the regional, national, and global levels.

In recent years, corporate governance has received increased attention because of high-profile scandals involving abuse of corporate power and, in some cases, alleged criminal activity by corporate officers. An integral part of an effective corporate governance regime includes provisions for civil or criminal prosecution of individuals who conduct unethical or illegal acts in the name of the enterprise.

See also: regulatory compliance, Sarbanes-Oxley Act, Basel II, Gramm-Leach-Bliley, HIPAA

This was first published in January 2008

Continue Reading About corporate governance

Glossary

'corporate governance' is part of the:

View All Definitions

Dig deeper on Compliance best practices

0 comments

Oldest 

Forgot Password?

No problem! Submit your e-mail address below. We'll send you an email containing your password.

Your password has been sent to:

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchSecurity

SearchCloudSecurity

SearchNetworking

SearchCIO

SearchConsumerization

SearchEnterpriseDesktop

ComputerWeekly

Close