 - 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
| LAST UPDATED: |
17 Jan 2008
|
 |
Read more about corporate governance:
|
|
Do you have something to add to this definition? Let us know.
Send your comments to techterms@whatis.com
|
 |
 |
| |
RELATED GLOSSARY TERMS
| Terms from Whatis.com − the technology online dictionary |
 |
subpoena
(SearchFinancialSecurity.com)
A subpoena is a command issued by a court in which a person or corporation is required to physically appear before, or produce specific evidence to,...
|
|
|
