Sustainable governance is how organizations mitigate risk around issues of board of directors, employee pay, and shareholder rights.
What is sustainable governance?
An organization’s governance begins with its board of directors, a group of individuals who protect shareholder interests and keep company executives accountable. Companies with strong governance principles also keep in mind issues around pay (remuneration) and shareholder rights.
Business ethics are crucial to effective corporate governance. Organizations that do this well focus on ethics with every decision to protect shareholders and their interests.