DMPQ: What is corporate governance? What are the importance of corporate governance? (polity)

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Corporate governance is the system, principles and group of procedure through which company is governed. It is sum of those principles , ideal values and code which inspire an institution to behave morally and with transparency.

Importance of CG:

• It is helpful in the increment of transparency, accountability and relevance.
• To discuss policies among people and informing them.
• Helps in taking effective decision.
• Maintain transparency in exchange of business.
• In accordance with the law.
• Must exercise to protect the rights of the shareholders.
• Adherence to the business values and moral behaviour.