Corporate governance is critical for an organisation, as it increases accountability. When the board of directors, management, company employees and shareholders are responsible for each other, this helps ensure everyone is accountable.

Good governance is also synonymous with business transparency. When a company meets reporting and disclosure requirements, stakeholders can be satisfied they have the required information to make decisions in the best interest of the company.

Corporate governance also controls risks and ensures company compliance with legal requirements, helping prevent fraud, scandals and potential liabilities.