Corporate Governance

deals with regulations that apply to employees or to the company itself and that are intended to ensure "good", responsible and targeted management and monitoring of companies. Rules can be set by the legislature, the owners, the employees, the supervisory or administrative board, the management, the company or other interested parties; they are contained in a law, in guidelines, in a code, in the company's mission statement, in declarations of intent or may not be set out in writing at all. Corporate governance rules can be both mandatory and non-binding.
The hallmarks of good corporate governance are:
* a functional company management
* safeguarding the interests of different groups (e.g. stakeholders)
* targeted cooperation in company management and supervision
* Transparency in corporate communications
* appropriate handling of risks
* the long-term focus on value creation

Differentiation from the term management
Corporate governance is often translated as "company management", just as management is often equated with "company leadership". However, management in terms of company leadership is also possible without taking corporate governance rules into account, while corporate governance as responsible company management and control must be implemented primarily by management.
German Corporate Governance Code
In 2002, a government commission created a corporate governance code for listed companies in Germany, which is regularly updated. This "code" represents essential legal regulations for the management and supervision of company management and contains internationally and nationally recognized standards of good and responsible company management. The code is intended to make the German corporate governance system transparent and comprehensible. It aims to promote the trust of international and national investors, customers, employees and the public in the management and supervision of German listed companies.
The Code clarifies the obligation of the Management Board and the Supervisory Board to ensure the continued existence of the company and its sustainable value creation in accordance with the principles of the social market economy.

See also:
Compliance; leadership skills; strategic management; corporate governance; risk management; corporate mission statement; open innovation; employer branding; honorable businessman; leadership
Reference to QET guidelines:
E01 Business Ethics; E17 Compliance; Q01 Leadership Competencies; Q19 Risk Management; T01 Guidelines; T02 CI; T19 Rating
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