What governance does corporate governance include?

Corporate governance, also known as corporate governance and corporate governance, is a set of procedures, practices, policies, laws and institutions that affect how to lead, manage and control a company. The method of corporate governance also includes the relationship among the stakeholders within the company and many goals of corporate governance. The main stakeholders include shareholders, managers and directors. Other stakeholders include employees, suppliers, customers, banks and other lenders, government policy managers, the environment and the whole community.

From the emergence and development of corporate governance, corporate governance can be divided into two levels: narrow corporate governance and broad corporate governance.

In a narrow sense, corporate governance refers to a supervision and balance mechanism between owners (mainly shareholders) and operators, that is, through an institutional arrangement, the relationship between rights and responsibilities between owners and operators is reasonably defined and distributed. The goal of corporate governance is to ensure the maximization of shareholders' interests and prevent the deviation between operators and owners' interests. Its main feature is the internal governance of the corporate governance structure composed of shareholders' meeting, board of directors, board of supervisors and managers.

Corporate governance in a broad sense refers to coordinating the interests between the company and all stakeholders (shareholders, creditors, employees, potential investors, etc.). ) adopt a formal or informal, internal or external system to ensure the scientific and effective decision-making of the company and ultimately safeguard the interests of all aspects of the company.

From the perspective of the environment and operation mechanism of corporate governance, it can be divided into internal corporate governance and external corporate governance.