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Corporate governance is the system of rules, relationships, and practices that determine the direction and control of an organization. It is vital in improving economic efficiency, growth, and investor confidence. Governance ensures accountability and controls how an organization operates. It involves the relationships between directors, management, shareholders, and stakeholders. The board is responsible for ensuring that the organization fulfills its duties to stakeholders. Governance stems from the Latin word for helmsman, emphasizing its role in steering and controlling the organization.
