Purpose and benefits

It is often assumed that there is a direct and clear causal link between the actions of the board and the success of the organisation, measured in terms of such factors as profitability, reputation, and share price. In reality, this link to business performance is rarely strong, ranging from satisfactory to weak.
There is renewed emphasis on corporate governance—not only how well the organisation succeeds, but how well it is run and regulated, formally and informally.