Why business environment require corporate governance?

Corporate governance is essential in the business environment because it establishes a framework for accountability, transparency, and ethical behavior within organizations. It helps protect stakeholders' interests, including shareholders, employees, and customers, by ensuring that companies operate responsibly and sustainably. Moreover, effective corporate governance enhances trust and credibility in the market, which can lead to improved investor confidence and long-term financial performance. Ultimately, it fosters a stable business environment conducive to growth and innovation.