Corporate Governance: Key Mechanisms, Practices, and Impact on Organizational Performance

January (Doctors In Business Journal) - Corporate governance refers to the system by which companies are directed and controlled, encompassing the structures, processes, and relationships that influence the way in which business decisions are made. The core purpose of corporate governance is to ensure accountability, fairness, and transparency in the management of companies. Effective governance mechanisms are critical in mitigating risks, enhancing corporate performance, and protecting stakeholders’ interests. This paper explores the fundamental principles and mechanisms of corporate governance, including board structures, executive compensation, shareholder rights, and regulatory frameworks. Through a comprehensive review of relevant literature, the paper analyzes the role of corporate governance in fostering long-term organizational success and its impact on both financial performance and corporate ethics. It also highlights the evolving landscape of governance practices in response to global economic changes, regulatory reforms, and growing calls for corporate responsibility. The paper concludes by emphasizing the need for robust governance systems to align the interests of managers, shareholders, and other stakeholders.

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