Corporate Governance

Abstract

Corporate governance is a system of controlled activities that act as a form of stewardship for organizations. Governance is represented by a board of directors, which balance the interest of stakeholders and company performance through the evaluation of internal processes such as organizational mission and vision, establishing core values, review of strategic planning process, assessment of organizational policies, hiring and compensation of senior executives, promoting diversity and inclusion, appraisal of executive leadership performance, and self-governance. Boards operate autonomously as they uphold their fiduciary obligations to the company and monitor and control corporate accountabilities. For boards to be effective, they should adhere to the highest standards of integrity while being objective in the delegation of their duties. This chapter offers a perspective of corporate governance and its relative relation, the strategic planning process, while explaining the complexity of organizational boards of directors.