corporate governance

Governments in many countries are encouraging improved standards of corporate governance, focusing mainly on public companies whose securities are listed on recognised capital markets.

Why are best practices in corporate governance of special importance to these companies?

1. All other types of business organisations are already subject to and fully implement high standards of corporate governance
2. Public companies are subject to less stringent regulation than other types of commercial organisation
3. Public companies are subject to a greater degree of separation between those who manage the company and those who own it
4. Public companies have institutional investors and have greater ethical responsibilities to these investors than to personal investors