Good corporate governance is at the heart of any successful business – – – because doing good is good business. It makes companies more accountable and transparent to the investors and gives them the tools to respond to legitimate stakeholder concerns. It contributes to the achievement of company objectives, drives improvement and development, and increases access to capital, encourages new investments, boosts economic growth, and provides employment opportunities.
Corporate governance practices are also designed to limit risk, keep the company out of legal trouble and helps gear key performance indicators to increase the long-term value of a company and its potential for growth.
Poor corporate governance, on the other hand, can lead to profit loss, corruption and a tarnished image and reputation for the corporation.