Term
| Corporate governance effectiveness |
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Definition
| The extent to which the company’s corporate governance is achieving its objectives. |
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Term
| Corporate governance rating |
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Definition
| Ratings metrics or systems that gather, analyze, rank, and compare corporate governance practices of public companies. |
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Term
| External governance mechanisms |
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Definition
| External operations that are designed to monitor the company’s activities, affairs, and performance to ensure that the interests of management, directors, and officers are aligned with the interests of shareholders and other stakeholders. |
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Term
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Definition
| Focuses on both shareholder value creation and enhancement and stakeholder value protection. |
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Term
| Internal governance mechanisms |
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Definition
| Internal operations that are designed to manage, direct, and monitor corporate activities. |
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Term
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Definition
| Supervision of management by the board of directors to maintain the best interests of the company and its shareholders. |
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Term
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Definition
| Another term for compensation. |
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Term
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Definition
| Concept that the corporation exists for the benefit of shareholders, and therefore, emphasizes shareholder value creation and enhancement as the primary objective of corporations. |
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Term
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Definition
| Individual or group that has an interest in the decisions, operations, and performance of a company, and who has input in those decisions. Stakeholders include: investors, creditors, suppliers, customers, employees, governments, regulators, standard-setters, competitors, and any other interest groups or users of the organization’s financial reports. |
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Term
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Definition
| Premise that a company’s success depends on the contributions of investors and other key groups and how well it manages the relationships with those groups which consist of shareholders, creditors, employees, supplies, customers, and communities. |
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Term
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Definition
| Openness and understandability of the company’s disclosures to both internal and external audiences. |
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Term
| Three Components of Corporate Governance |
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Definition
| Principles, Functions, Mechanisms |
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Term
| Principles of Corporate Governance |
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Definition
| Honesty, resiliency, responsibility, transparency |
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