Corporate governance refers to the processes, customs and policies that are in place within an organisation to ensure better business direction, management and control. It also concerns the relationship between the shareholders, management and the board of directors. Stronger corporate governance legislation is emerging globally. Compliance with the legislation will not only lead to a more ethical culture and effective business management, companies that demonstrate sound self-regulated practices will also avoid intrusion from demanding external regulators.

The key to good corporate governance is to create a strong ethical corporate structure within which people can perform effectively and through which the public can maintain their confidence in the organisation. Good governance principles also assist members of the board, CEOs and senior managers to develop, implement and maintain a robust self-regulatory system that fits with the particular circumstances of the organisation. Such a system will contribute to both the prosperity and the accountability of the business.