The winds of change in board governance

CORPORATE governance is about the set of systems, rules and processes that ensure the interests of stakeholders are aligned in a transparent way. Within the corporate ecosystem, the board of directors is primarily responsible for the governance of the company. Board governance can, however, change under three potential circumstances.

Responses to scandals

First, external events, such as major corporate scandals or market upheavals, can lead to strengthening of governance rules to avert future occurences.