Lesson 95 - Advanced Accounting Course

Lesson 95: The Evolution of Corporate Governance in Major Corporations

🧭 What is Corporate Governance?

Corporate Governance refers to the system of rules, practices, and processes by which a company is directed and controlled. It ensures:

• 📊 Transparency to investors and stakeholders
  
  

• ⚖️ Accountability of management
  
  

• 📌 Compliance with laws and regulations
  
  

• 🔒 Protection of shareholder rights
  
  

At its core, corporate governance determines who makes decisions, how they're made, and who holds power.

📜 A Brief Timeline of Corporate Governance Evolution

🧑‍⚖️ Key Principles of Modern Corporate Governance 

🏢 Structure of Corporate Governance Today

🧨 Corporate Scandals That Shaped Governance

📈 Recent Trends in Corporate Governance

1. Diversity and Inclusion 🌍
   More boards now aim for gender and ethnic diversity.
   
   

2. ESG (Environmental, Social, Governance) 🌿
   Investors are increasingly evaluating companies based on sustainability and ethical impact.
   
   

3. Stakeholder Capitalism 🤝
   Focus is shifting from just shareholders to all stakeholders — employees, customers, communities.
   
   

4. Cybersecurity and Data Governance 🔐
   Boards must now manage risks related to technology, AI, and privacy breaches.
   
   

5. Activist Investors 💼
   Shareholders are taking a more active role in influencing board decisions and strategies.
   
   

📊 Table: Then vs. Now in Corporate Governance

✨ Key Takeaways for Accounting Students

• Corporate governance is a cornerstone of financial health — poor governance often leads to fraud or collapse.
  
  

• Accountants play a key role in enforcing transparency and supporting ethical leadership.
  
  

• Understanding board structures, internal controls, and stakeholder rights is essential for modern financial professionals.
  
  

• Good governance promotes trust, attracts investors, and protects company value in the long term.