Corporate governance refers to a company’s mechanisms and control structures that may influence senior management decision-making. The issue of corporate governance has two dimensions. It commonly focuses on the pattern of corporate ownership and the extent to which the shareholders, as the owners of the company, exercise power over management decision-making. However, in the context of decision-making in the area of employment and industrial relations, the debate also reflects a concern with the representation of employees’ interests, who, as stakeholders, have a vested interest in the company’s activity, and specifically with the role of employee representatives, including trade unions.
See also: consultation in the enterprise; corporate social responsibility; corporate structures; European company; European works councils; management and labour; restructuring; transnational enterprise.