Corporate governance

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Corporate governance is the set of rules that control a company's behavior toward its directors, managers, employees, shareholders, creditors, customers, competitors, and community.


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Corporate governance. The set of rules that control a company's behavior toward its directors, managers, employees, shareholders, creditors, customers, competitors, and community.

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Corporate governance. Establishment of rules and practices by Board of Directors to ensure that managers act in shareholders' interests while balancing the needs of other key constituencies.

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