What is “corporate governance”? Its three key elements and how can it be improved?

Management
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Management
What is “corporate governance”? Explain its three key elements and how can it be improved? (Marks 05)
Corporate governance is defined as how various stakeholders work together to influence the production and future of an organisation. The key elements include the board of directors, management (chaired by the chief executive officer), and shareholders who have different roles in the organisation. Corporate governance is integral to a company’s success. It can be improved by implementing effective managerial rewards and incentives, which will ensure the key employees feel happy about their role in the organisation. Corporate governance can also improve through an engaged and efficient board of directors who keen to make important decisions. Shareholder activism is also crucial, whereby they are actively involved in the operations of the company. Activism ensures that their interests will be met while also improving corporate governance since they work together with ot...