What are the issues that impact corporate governance? Explain in detail.

Issues that impact corporate governance

One of the issue that impact corporate governance is that an increased influence of shareholders and their activism has forced corporate governance to move towards shareholder-centrism, the positive or negative effects of which are still not clear (Gregory & Austin, 2014). The shareholder pressure does influence board decisions though. The actual purpose of corporation and governance roles has also been under constant debate over time. Setting up goals and whether they should focus on long or short term is also an issue that impacts the corporate governance. Corporate governance also has to deal with rebuilding the trust of the society on them as different actions by corporations to increase profits tend to create different kinds of doubts in the minds of the societies where these corporations are active.