Corporate governance involves relationships between a company's management, board of directors, shareholders, and other stakeholders. It provides the structure to set objectives and monitor performance. It also determines how the company is directed and controlled. The principal stakeholders are shareholders, management, and the board of directors, while other stakeholders include employees, customers, creditors, suppliers, regulators, and the community. Senior executives manage the company's day-to-day operations and are responsible for strategic planning under the authority of the board of directors.

1. Corporate Governance