What is Corporate governance?

Over the past decade in particular, there has been increasing focus and debate in the western world on which guiding principles that are to form the basis of the control and direction of a company.

Basic principles for good corporate governance include universal and essential values such as transparency, accountability, openness, integrity and responsibility put into practice by a combination of statutory and self regulation.

Nørby Committee Recommendations

The Danish Nørby Committee, convened at the request of the Danish Ministry of Trade and Industry to make recommendations for good corporate governance in Denmark has, in December 2001, defined corporate governance as follows:

"The goals, according to which a company is managed, and the major principles and frameworks which regulate the interaction between the company's managerial bodies, the owners as well as other parties, who are directly influenced by the company's dispositions and business (in this context jointly referred to as the company's stakeholders). Stakeholders include employees, creditors, suppliers, customers and the local community".

Read more about Corporate governance.