Corporate governance refers to a set of processes, customs, policies and laws by which a company is run, managed or controlled. It is a generic term that describes the ways in which rights and responsibilities are shared among the different business participants, especially management and shareholders.

It is based on the principles of responsibility, transparency and accountability. An important objective of corporate governance is to ensure the accountability of certain individuals within an organization through mechanisms that seek to reduce or eliminate principal-agent problems. It is a tool for socio-economic development. It is also known as corporate governance.