Why is Corporate Governance Important for Business Leadership?
Corporate governance is crucial for business leadership for several reasons:
1. Accountability: It establishes a framework for the board of directors and executives to be accountable for their actions and decisions. 2. Transparency: It ensures that the company's processes and policies are transparent, which builds trust among stakeholders. 3. Risk Management: Effective governance helps in identifying and mitigating risks, safeguarding the company's assets and reputation. 4. Sustainability: It promotes sustainable business practices that consider long-term impacts rather than short-term gains.