Corporate Governance: Major Issue (original) (raw)

Corporate governance is a term that refers broadly to the rules, processes, or laws by which businesses are operated, regulated, and controlled. The term can refer to internal factors defined by the officers, stockholders or constitution of a corporation, as well as to external forces such as consumer groups, clients, and government regulations. The corporate governance system resembled the bank-based German model where these institutions could have played a big role in keeping their clients on the right track.