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Corporate governance is important because it is a system that instills policies and rules for maintaining the cohesiveness of an organization. Corporate governance is meant to hold a company accountable while helping an organization steer clear of financial, legal and ethical pitfalls.What are the four objectives of corporate governance?
Corporate Governance Objectives Transparency and Full Disclosure. Good corporate governance aims at ensuring a higher degree of transparency in an organization by encouraging full disclosure of transactions in the company accounts. Accountability. ... Equitable Treatment of Shareholders. ... Self Evaluation. ... Increasing Shareholders' Wealth. ...Does corporate governance really matter?
Good corporate governance ensures that a businesses environment is fair and transparent and that employees can be held accountable for their actions. Conversely, weak corporate governance leads to waste, mismanagement, and corruption. Regardless of the type of venture, only good governance can deliver sustainable and solid business performance.