Corporate Governance: Linking Corporations and Society

Corporate governance is concerned with the operation of a corporation according to the rules. Those rules can include the corporation's charter, operating guidelines, and the legal agencies with authority for business oversight. Reading this section will prepare you to be able to discuss the idea of governance, and to explain the interests of the many stakeholders involved.

Today's U.S. corporate governance system is best understood as the set of fiduciary and managerial responsibilities that binds a company's management, shareholders, and the board within a larger, societal context defined by legal, regulatory, competitive, economic, democratic, ethical, and other societal forces.


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