The answer is true. Corporate governance is the framework for managing and directing businesses. The management of their companies is under the control of their boards of directors. The shareholders' role in governance consists of selecting the directors and auditors as well as ensuring that a suitable governance structure is in place.
In order to ensure that the interests of all of a company's stakeholders are aligned, corporate governance establishes a set of rules and practices that must be followed. Financial viability is a result of ethical business practices, which are a result of good corporate governance. Calculating the company's carbon footprint and upholding human rights within the organization are a couple of examples of good corporate governance practices.
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