corporate governance

Meaning

This term refers to the system of rules, practices, and processes by which a company is directed, controlled, and administered. It involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government, and the community. The tone is highly formal and academic.

Examples

• Good corporate governance is essential for maintaining investor confidence.

  Good corporate governance is essential for maintaining investor confidence.

• The scandal exposed severe weaknesses in the bank's corporate governance.

  The scandal exposed severe weaknesses in the bank's corporate governance.

• Our company's board of directors is responsible for establishing high standards of corporate governance.

  Our company's board of directors is responsible for establishing high standards of corporate governance.

• Regulatory bodies are demanding more transparency in corporate governance.

  Regulatory bodies are demanding more transparency in corporate governance.

• The new CEO implemented strict corporate governance policies to prevent future ethical violations.

  The new CEO implemented strict corporate governance policies to prevent future ethical violations.

Common Mistakes

• ✗ The company needs better corporate government.

  ✓ The company needs better corporate governance.

  'Government' refers to the political administration of a country. 'Governance' is the act or manner of governing/managing an organization.

• ✗ The corporate governance of the firm are very strict.

  ✓ The corporate governance of the firm is very strict.

  'Corporate governance' is an uncountable, singular noun concept, so it requires a singular verb ('is', not 'are').

Related Expressions

Practice

• The board of directors met to discuss improving the firm's ___ practices.

  💡 The system of rules and practices directing a company.

  Show answer

  corporate governance

• A lack of clear ___ often leads to financial scandals and loss of trust.

  💡 The system by which a corporation is controlled and managed.

  Show answer

  corporate governance