Corporate governance, in a broad sense, is a science to study the arrangement of enterprise power. In a narrow sense, it is a science that lives in the level of enterprise ownership, studies how to empower professional managers, and exercises supervisory functions for professional managers to perform their duties.
The principles of corporate governance include several elements: honesty, trust, integrity, openness, performance orientation, sense of responsibility and reliability, mutual respect and commitment to the organization.
Basic principles of corporate governance
First of all, the corporate governance framework should protect the rights of shareholders.
Second, all shareholders, including minority shareholders and foreign shareholders, should be treated equally. If their rights are damaged, they should have the opportunity to get effective compensation.
Third, confirm the legal rights of the company's stakeholders and encourage the company to actively cooperate.