International Corporate Governance

Corporate governance is the system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the community. In an international context, these can be very different entities and governed by equally different cultural frameworks. This makes consideration of international comparative governance an important topic. Since corporate governance also provides the framework for attaining a company's objectives, it encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure. National legal and political systems and associated institutional frameworks also impact on corporate governance, and closely associated financing arrangements, where these too exert influence over firm’s governance arrangements.