What is a key purpose of corporate governance?

A key purpose of corporate governance is to define expectations and protection measures for assets. This encompasses the frameworks, rules, and processes that dictate how a company is directed and controlled. Effective corporate governance ensures that the interests of stakeholders—including shareholders, management, customers, and the community—are balanced and protected. It lays out guidelines for proper oversight of the organization's resources, ensuring accountability, transparency, and ethical behavior.

By establishing these protective measures, corporate governance helps mitigate risks associated with mismanagement or misallocation of assets, enhances organizational performance, and instills trust in the company's operations. It also provides clarity on roles and responsibilities within the organization, which further contributes to the safeguarding of assets and attainment of strategic objectives.

The other options address different aspects of business management but do not align directly with the core objective of corporate governance, which is fundamentally focused on oversight and protection of the organization's assets and stakeholder interests.