What Is Corporate Governance?

Corporate Governance is defined as "The set of processes, customs, policies, laws and institutions affecting the way a corporation is directed, administered or controlled. The main parties in corporate governance are shareholders, management and the board of directors. Other stockholders include employees, suppliers, customers, banks and community at large.

Commonly accepted principles of corporate governance include are following:
- Rights and equitable treatment of shareholders: Every individual shareholder has a right to exercise his right. Organization should provide them effectively communicating information that is understandable and accessible and encouraging shareholders to participate in general meetings.

- Interest of other stakeholder: Organizations should recognize that they have legal and other obligations to all legitimate stakeholders.
- Roles and responsibility of the board: The board needs a range of skills and understanding to be able to deal with various business issues and have the ability to review and challenge management performance. It needs to be of sufficient size and have an appropriate level of commitment to fulfill its responsibilities and duties.

- Integrity and ethical behaviour: Organizations should develop a code of conduct for their executives and directors that promotes ethical and responsible decision making.
- Disclosure and transparency: there should be transparency within organization. All the information should be disclosed to its shareholder. The entire shareholder should be accountable.

Role of ethics in auditing profession