ABSTRACT
Corporate scandals (e.g., Enron, WorldCom) and the magnitude of the 2008 financial crisis has raised consciousness that Corporate Governance is an important issue for all institutions but particularly for corporate business. Weak internal controls, insufficient board oversight and lack of supervisory impact on corporate governance were detrimental to the trustworthiness of business and financial markets. Since the financial crisis, all countries are more aware of the importance of strong governance structures and good governance systems. Corporate governance can be considered as creating an organisational environment of trust, ethics, moral values and confidence among the organisation’s stakeholders, including government and the general public. This is complicated by the fact that a corporation as a legal being has legal and ethical responsibilities, but without there being anyone explicitly charged with ensuring those responsibilities are fulfilled (Greenfield 2006). Many countries are now evaluating their legislation and regulatory policies pertaining to governance structures and taking steps to safeguard the sector and reduce the risk of severe financial distress in the future. Getting the right governance principles, standards and tools in place to support and promote responsible business practices is important for securing a sustainable business environment. However, businesses themselves need to be proactive and implement good governance principles and practices.
