Corporate governance broadly refers to the mechanisms, relations, and processes by which a company is controlled and directed. It is the framework of rules and practices by which a board of directors ensures accountability and transparency in a company’s relationship with its stakeholders, be they shareholders, customers, suppliers, top management, employees, the community and the government. The framework consists of: (a) explicit and implicit contracts between the company and its stakeholders for the distribution of responsibilities, rights, and rewards; (b) procedures for reconciling the sometimes conflicting interests of stakeholders in
