These are all areas an investor can research before making an investment

decision.

Corporate Governance FAQs

What Are the 4 Ps of Corporate Governance?
The four P's of corporate governance are people, process, performance, and
purpose.

Why Is Corporate Governance Important?

Corporate governance is important because it creates a system of rules and
practices that determine how a company operates and how it aligns the interest
of all its stakeholders. Good corporate governance leads to ethical business
practices, which leads to financial viability.

What Are the Basic Principles of Corporate Governance?

The basic principles of corporate governance are accountability, transparency,
fairness, and responsibility.

What Are Examples of Corporate Governance?

Examples of corporate governance include the Anglo-US model, the German
model, and the Japanese model.

The Bottom Line

Corporate governance consists of the guiding principles that a company puts in
place to direct all of its operations, from compensation to risk management to
employee treatment to reporting unfair practices to its impact on the climate, and
more.

A strong, transparent corporate governance leads a company to make ethical

decisions that benefit all of its stakeholders, allowing the company to place itself
as an attractive option to investors if its financials are also healthy. Bad corporate
governance leads to a breakdown of a company, often resulting in scandals and
bankruptcy.

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