CISI Professional Practice Exam 2026 – Complete Prep Guide

A key aspect of corporate governance in finance is ensuring accountability and ethical practices. Corporate governance involves the systems, principles, and processes by which a company is directed and controlled, with a strong emphasis on accountability to stakeholders, including shareholders, employees, customers, and the wider community.

This focus on accountability helps to foster trust and integrity within an organization, ensuring that decision-makers act in the best interests of the company and its stakeholders. Ethical practices are crucial as they establish standards of conduct and behavior for all members of the organization, promoting transparency and fair treatment.

While maximizing company profits and reducing the costs of operations might be goals associated with a successful business, they do not encompass the broader responsibilities and framework that corporate governance entails. Similarly, restricting shareholders' rights runs counter to the principles of governance, which advocate for the protection and involvement of all stakeholders in the decision-making process. Thus, accountability and ethical practices stand out as fundamental to effective corporate governance.