Corporate governance is the collection of mechanisms, processes, and relations by which corporations are controlled and operated. It includes the methods through which Corporation objectives are set and pursued within the context of their environment. Corporate governance involves the monitoring of policies, practices, and decisions made in the Corporation. These decisions could be caused by their agents, shareholders, and high-ranking employees.
Corporate governance came into play from 2001 through 2002 when several corporations collapsed due to their practices of money spending, allocation of funds, and accounting fraud. Corporate governance came to light again in 2008 during the financial crisis. Public and political interests have zeroed in on the several corporate scandals that have taken place some include Enron, and MCI Inc., which was formally WorldCom. Several failsafe’s have been put into place through government acts to keep a leash on corporations so that they comply with good spending and accounting practices.
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