Types of Corporate Governance

https://boardroomdirect.blog/what-are-the-four-types-of-corporate-governance/

The term “corporate governance” refers to the structure, customs, policies and procedures that govern the way in which people direct, manage and oversee a business. This includes creating a long-term vision for business, documenting the processes that support it and regularly reviewing performance. Good corporate governance is based on the principles of accountability, diversity, transparency and fairness.

This requires that a company divulge all pertinent information, including financial results, meeting outcomes and minutes, any changes to normal operations or the resignation and replacement of the most important board members and management. This encourages honesty, integrity and willingness to share both good and negative news with staff, shareholders, vendors, the community and other stakeholders.

The general responsibility is to establish an arrangement that checks and balances to ensure that shareholders are treated with respect and that management decisions are sound. This includes making sure that internal controls are effective to ensure compliance with the laws and regulations.

Different models of corporate governance are used across the globe. The most popular is the Anglo-American model, which is based on the needs of shareholders in the decision-making process and management. This model is widely embraced by businesses in multiple countries However, there are many other governance models in place. They are all similar and share some core principles, even though they differ.