Corporate governance: An introduction

Corporate governance is important as it helps to foster cooperation and accountability internally, provide reassurance to shareholders externally and promote the image of the company to its stakeholders and the public. Corporate governance can contribute to an improved business and investment framework, supporting ethical business practices and responsible business. 

HR has a role to play in supporting the chair, the CEO, the board, committee chairs and workforce directors. Responsibilities include preparing and presenting board papers, answering questions, and providing skills assessments. Some HR leaders may go on to become non-executive directors.  

This factsheet explores the purpose of corporate governance, the regulations that reinforce it, and good practice guidance. It also looks at the roles and responsibilities of the board members as well as the audit, remuneration and nomination sub-committees. Ultimately, good governance should also promote good relations with stakeholders, including shareholders and employees.