{"id":62,"date":"2023-08-03T10:05:26","date_gmt":"2023-08-03T14:05:26","guid":{"rendered":"https:\/\/pressbooks.library.torontomu.ca\/cebe\/chapter\/__unknown__-11\/"},"modified":"2023-08-22T12:13:01","modified_gmt":"2023-08-22T16:13:01","slug":"corporate-governance","status":"publish","type":"chapter","link":"https:\/\/pressbooks.library.torontomu.ca\/cebe\/chapter\/corporate-governance\/","title":{"raw":"Corporate Governance","rendered":"Corporate Governance"},"content":{"raw":"

Generally, the term corporate governance<\/strong> applies to a company\u2019s policies and procedures determining who has the authority to make which decisions on the company\u2019s behalf and who is accountable to whom within the organization. More specifically, we usually use the term to refer to the way that authority within corporations is structured at the highest levels. This includes questions like who selects the board of directors, what the board\u2019s responsibilities and powers are, what sub-committees it should have, and so on.<\/p>\r\nWith regard to business ethics, corporate governance is important for a number of reasons. First, a corporation\u2019s governance structure explains who is ultimately responsible for a corporation\u2019s behaviour. Second, its system of governance may indicate what is the purpose of the corporation and what counts as good management in pursuit of that purpose. The shareholder<\/a>\u2013stakeholder<\/a> debate in business ethics is sometimes referred to as the \u201ccorporate governance debate\u201d because it concerns how and in whose interests companies should be managed. Third, failures of corporate governance are frequently a source or exacerbator of corporate scandals.\r\n\r\nSee also in CEBE:<\/strong>\r\n