Corporate governance is a system that determines the process of achieving the company's strategic goals through the relationships between the company's managers and shareholders. Good corporate governance is critical to the company's reputation, investor confidence, and long-term success. Transparency, accountability, and fair decision-making processes are among the basic principles of corporate governance.
Incomplete or inadequate corporate governance can have negative effects on the company's reputation and cause investors to lose confidence. For example, mismanagement practices and unethical behaviors within the company can lead to financial scandals or legal sanctions. A good corporate governance structure contributes to both reducing risks and the sustainability of the company. In addition, a balanced distribution of authority between the board of directors and senior executives strengthens the company's decision-making processes.
