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Corporate Governance Mechanisms

Corporate governance mechanisms

Corporate governance refers to the mechanisms, practices, regulations, and processes by which a company is controlled and directed to ensure that decisions made by firms, CEOs, or managers balance the interests of different stakeholders.

Recall a bit about sustainability. In this course, sustainability means that firms should care about the interests of others, not just shareholders. But how can we ensure that decisions made by CEOs and managers benefit stakeholders’ interests, not just the CEO’s personal interests? In other words, corporate governance is crucial and necessary for sustainable development.

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Mastering Sustainable Finance: ESG, Investments, & Corporate Strategy

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