Corporate Governance from Compliance to Competitive Advantage

Corporate governance is a priority for firms because it presents opportunities to manage risks and add value. Focus of corporate governance is shifting from mere obligation and compliance with laws and listing standards, to a business imperative for many firms. Corporate governance significantly influences the firm’s performance. Good corporate governance is a key driver of sustainable corporate growth and long-term competitive advantage. This article highlights the meaning and scope of corporate governance. It focuses on OECD principles of corporate governance. It also explains objectives of corporate governance system.