CASIRJ Volume 5 Issue 4 [Year - 2014] ISSN 2319 – 9202 International Research Journal of Commerce Arts and Science http://www.casirj.com Page 141 CORPORATE GOVERNANCE AND BUSINESS ETHICS SHAILI SONI FACULTY OF COMMERCE G.C.W. JIND Introduction Corporate governance is the set of processes , customs , policies , laws , and institutions affecting the way a corporation (or company ) is directed, administered or controlled. Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. Many of the "definitions" of corporate governance are merely descriptions of practices or preferred orientations. For example, many authors describe corporate governance in terms of a system of structuring, operating and controlling a company with a view to achieve long term strategic goals to satisfy shareholders, creditors, employees, customers and suppliers, and complying with the legal and regulatory requirements, apart from meeting environmental and local community needs. However, there is substantial interest in how external systems and institutions , including markets , influence corporate governance. Key elements of good corporate governance principles include honesty, trust and integrity, openness, performance orientation, responsibility and accountability, mutual respect, and commitment to the organization. Principles of corporate governance  Rights and equitable treatment of shareholders: Organizations should respect the rights of shareholders and help shareholders to exercise those rights. They can help shareholders exercise their rights by effectively communicating information that is understandable and accessible and encouraging shareholders to participate in general meetings.