Define corporate governance and explain why it is used to monitor and Essay

Define corporate governance and explain why it is used to monitor and control managers strategic decisions - Essay Example Therefore, since the corporate governance encompasses all the management spheres of the company, it forms the vital tool in monitoring and controlling all the strategic decisions of the company’s managers. From the above definition of the corporate governance, it is clear that it governance both internal and external factors driving the operations of a company. It is usually the responsibility of the entire management to understand and determine how to balance between the external and internal factors affecting a company (Joshi 46); hence, under the umbrella of corporate governance, the management of the company is capable of determining what affects both the external and internal player of the company. For instance, quality of a product will affect the response of the consumers. In this case, the quality of the product is manly affected by laxity of the internal factors but may also be attributed by external factors (suppliers supply poor quality of raw material). However, the whole issue lies with internal quality management that could have detected the quality of the raw material and rejected the same due to poor quality (Fernando 72). Nonetheless, the corporate governance forms a vital management aspect of a company and every aspect of corporate governance must be considered effective to ensure smooth and efficient company