Processes and institutions should produce results that meet the needs of stakeholders while making the best use of resources. This includes promoting efficient allocation of resources and maintaining a framework that supports effective supervision and enforcement. 8. Accountability
The board must protect the rights of all shareholders, not just the controlling majority. This principle demands that minority and foreign shareholders receive the same consideration as large, influential stakeholders.
to ensure they remain accountable, transparent, and resilient. World Bank The 9 Principles of Good Corporate Governance Accountability 9 principles of corporate governance
The board must identify, assess, and mitigate material risks—financial, operational, cyber, geopolitical, and reputational. "Risk appetite" is the amount of risk the company is willing to accept to achieve its strategy.
Integrity goes beyond legal compliance. A company may legally avoid taxes or fire a sick worker, but integrity asks, "Is it right ?" This principle demands a corporate culture that actively prohibits bribery, corruption, and conflicts of interest. Processes and institutions should produce results that meet
Governance is most effective when it includes the voices of those affected by decisions. This involves ensuring that all stakeholders—from shareholders and employees to local communities—have a platform to participate in the company's direction. Active participation fosters diverse thinking and reduces the risk of narrow-minded leadership. 2. Rule of Law
Institutional investors act as intermediaries for millions of individual savers. This principle argues that they have a duty to be active owners rather than passive spectators. It also mandates that stock markets should provide high standards of transparency and integrity. Accountability The board must protect the rights of
Governance is not micromanagement. The board’s job is not to run the company, but to ensure the company is running toward the right horizon.
As artificial intelligence, climate change, and geopolitical fragmentation reshape business, these 9 principles become more critical, not less. AI governance (algorithmic accountability) falls under and Ethics (1) . Climate transition plans fall under Stakeholder Engagement (9) and Disclosure (4) .
The board of directors is accountable to the company and its shareholders, not just to the CEO who hired them. Accountability means that management must answer to the board, and the board must answer to the owners.