the.com/corporate governance

the rulebook that decides whether a company is run for shareholders or by whoever's closest to the printer.

means the system of rules, checks, and reporting lines that decides who controls a company, who watches them, and who they answer to.

from the phrase rose in the 1970s-80s after a string of boardroom scandals showed shareholders often had zero real say over the executives spending their money; committees like the UK's Cadbury Report (1992) formalized what good oversight should look like.

for instance

enron2001 collapse from fake accounting despite a full board and auditors

volkswagen dieselgate2015 emissions fraud missed by supposedly independent oversight

theranos boardpacked with generals and statesmen, none who understood the science

wework's adam neumannmultiple votes per share let him control the company he nearly sank

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