Corporate governance has successfully attracted business industries today because of the
perceptible need for the corporations to implement economic health. But sad to say, the
idea of corporate governance is inadequately defined for it potentially consists of huge
amount of district economic activities.
Corporate governance actually refers to the policies, laws, traditions and management
institutions and policies that influence the way an organization is managed, organized and
controlled. This includes the relationships between the stakeholders; and its objective is
to organize and achieve the goals of the company in a very efficient and helpful way. To
know that corporate governance really works, it must allow the company to organize and
manage all areas of the organization achieve the goals and its objectives.
Corporate Governance involves numerous fields of study that includes economic
efficiency view. This refers to how the system in corporate governance plans to organize
and manage the objectives and results of change. Strategic efficiency is also important
that includes objectives in public policy such as health care, job provision, income
stabilization, mitigation of poverty and may more. These matters are concerns of the
public institutions that are not determined in terms of economic aspects. Stakeholders’s
view is essential area of study that concentrates on the accountability and responsibilities
of the citizens, staff, companies and other government levels.
Corporate governance is indeed indispensable in the field of economics because it
examines how to secure the effective management of companies by utilizing contacts,
legislation and other organizational design. This also crucial in dealing methods by which
financial suppliers guarantee the return of their investments.