The Role of Transparency in Corporate Governance

Corporate governance refers to the structures’ rules, regulations and procedures that are
implemented and used to govern and manage a company. Corporate governance deals with
balancing the interests of several stakeholders in a business, such as investors, senior
managers, customers, suppliers, financiers, government, etc. On the other hand,
transparency is an important factor in operating a well-functioning system of corporate
governance. Companies’ disclosure is the primary means to achieve this transparency. A
company’s system of internal control and audit function also plays an important part in this
transparency.