The most basic function of corporate governance is to see that a business strategy is made effective by the company’s executives and workers, as Deloitte explains in a report. Corporate governance essentially involves balancing the interests of … Good management is, of course, critical for the operation of a company. Corporate governance is intended to increase the accountability of your company and to avoid massive disasters before they occur. Corporate governance is about making your business work better while abiding by the rules. Corporate governance is the structure of rules, practices, and processes used to direct and manage a company. Corporate governance is the system of rules, practices and processes by which a company is directed and controlled. A company's board of directors is the primary force influencing corporate governance. Failed energy giant Enron, and its bankrupt employees and shareholders, is a prime argument for the importance of solid corporate governance.