About Corporate Governance

What is Corporate Governance?

Corporate governance is "the system by which companies are directed and controlled" (Cadbury Committee, 1992). Worldwide, the definition of corporate governance may include regional nuances, but corporate governance in Canada involves regulatory and market mechanisms, and reconciling the roles and relationships between numerous corporate stakeholders within an organization and the governance goals within a corporation.

Internal governance stakeholders include:

Company management

• Executives
• Board of Directors
• Shareholders and other corporate stakeholders
• Employees

External governance stakeholders include:

• Shareholders
• Debtholders
• Trade creditors
• Suppliers, customers and communities affected by a corporation's activities

Who are Governance Professionals?

They hold various titles from: Chief Governance Officer, Corporate Secretary, Corporate Counsel, Executive Director, Head of Compliance, Risk, Legal, and they are responsible for: implementing governance policies and procedures, monitoring compliance, supporting the Board and its committee meetings and processes, fostering a culture of transparency and accountability and managing the space between the Board and Management…among many other key contributions.

They play a crucial role in ensuring that an organization is operating in an efficient, ethical, and compliant manner and that the organization is following leading governance practices to protect it from potential risks. Governance professionals have undergone a remarkable evolution over the last 30 years and GPC recognizes the key role that they play in organizations across all sectors of Canada’s economy.