ABSTRACT
According to Investopedia, corporate governance is the system of rules, practices, and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government, and the community. Since corporate governance also provides the framework for attaining a company's objectives, it encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure. The agency problem is a conflict of interest inherent in any relationship where one party is expected to act in another's best interests. The Board of Directors has the vital role of overseeing the company's management and business strategies to achieve long-term value creation. Independent members are often consider red helpful for governance, because they dilute the concentration of power and help align shareholder interest with those of the insiders. The Principles of Corporate Governance build on the foundation of people Credo.
