Corporate Governance refers to the structures and processes for the direction and control of members of a group. It is connected with holding the balance between economic and social goals and between individual and communal goals.
In addition, corporate governance also reduce s wastage, corruption and mismanagement of resources.
Good corporate strategies and objectives than an organization or company has allows for less wastage because people already know what they ought to do, it also allows for less to no corruption because there is no mismanage of resources owing to the fact that everyone knows where resources are to be allocated and used.
Furthermore, good corporate governance infuses the democratic values of fairness, accountability and transparency into organizations. It maintains the integrity of business transactions and in so doing strengthens the rule of law and democratic governance. Observing good corporate governance allows for the clarification of private rights and public interest and the prevention of their abuse. In order for an organization to be effective, it must be accountable, responsible and transparent.
Good corporate governance also structures the relationships among investors, boards of directors, managers and other stakeholders. Observing good governance helps to maximize long term shareholder value by improving corporate decision making and performance.