Corporate governance is the way a corporation polices itself in short it is a method of governing the company like a sovereign state instating its own customs policies and laws to its employees from the highest to the lowest levels. Corporate governance is the combination of rules processes or laws by which businesses are operated regulated or controlled the term encompasses the internal and external factors that affect the interests of a companys stakeholders including shareholders customers suppliers government regulators and management the board of directors is responsible for creating the framework for . Corporate governance the manner in which the stakeholders in a corporation relate to one another corporate governance has a positive connotation and a company with good corporate governance is said to be a company in which all stakeholders relate to each other in a positive way good corporate governance is considered an important quality of
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