Which describes corporate governance?

Corporate governance refers to the systems, principles, and processes by which organizations are directed and controlled. It encompasses the mechanisms through which companies, particularly publicly held corporations, are operated, regulated, and held accountable to their stakeholders—including shareholders, customers, employees, and the community at large.

This structure helps ensure that the interests of all stakeholders are balanced and that the organization operates in a transparent and ethical manner. Corporate governance involves establishing clear policies and guidelines regarding decision-making, performance monitoring, risk management, and compliance with laws and regulations. By focusing on these systems and principles, organizations can foster trust and enhance their reputation, ultimately leading to long-term sustainability and success.

The other options do not encompass the broader principles and systems involved in corporate governance. Selling corporate stocks pertains specifically to financing activities, managing finances focuses more on fiscal management rather than the governance frameworks, and regulating employee conduct deals with internal HR policies rather than the overall governance structure of the organization.