Corporate Governance and Strategic Decisions - Essay Example

Corporate governance comprises the practices, rules, and processes that direct and control a company. Corporate governance is usually fundamental in balancing the interests of the company stakeholders including managers, suppliers, consumers, government, financiers, and the entire community (Tricker 22). Notably, corporate governance provides the framework through which the company attains its objectives; thus, it practically engulfs every management sphere including the action plan as well as the internal controls to the management measurement performance and corporate disclosure. Therefore, since corporate governance encompasses all the management spheres of the company, it forms a vital tool in monitoring and controlling all the strategic decisions of the company’s managers.

hence, under the umbrella of corporate governance, the management of the company is capable of determining what affects both the external and internal players of the company. For instance, the quality of a product will affect the response of the consumers.

Nonetheless, corporate governance forms a vital management aspect of a company and every aspect of corporate governance must be considered effective to ensure smooth and efficient company management.