Corporate Governance And Its Role In Improving The Efficiency And Effectiveness Of Companies

Document Type : Excerpt from master's thesis

Author

Master student, business management, Payame Noor University, Tehran, Iran

Abstract

Corporate governance is the rules, regulations, structures, processes, cultures and systems that achieve the goals of accountability, transparency, justice and respect for the rights of stakeholders. Corporate governance has become one of the main and dynamic aspects of the business world. It is increasing dramatically. In recent years, the height of corporate financial scandals has given special importance to the issue of corporate governance. One of the main factors in improving economic efficiency is the corporate governance system or corporate governance, which includes a set of relationships between the company's management, board of directors, shareholders and other stakeholders. The corporate governance system provides a structure through which the goals of the control firm and the means of achieving and monitoring the goals are determined. This system creates the necessary motivation to achieve the goals of the firm and the organization in management and also provides the ground for effective supervision. Therefore, companies use resources more effectively. Thus, by controlling the company by major shareholders can be Provided control tools to protect shareholders' interests, thereby monitoring the company's performance. Corporate governance, above all, aims at the long-term life of the enterprise and seeks to protect the interests of shareholders against the management of organizations.

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