Corporate governance primarily refers to what aspect of management?

Corporate governance fundamentally pertains to the framework and process through which corporations are directed and controlled. This involves a set of relationships between a company's management, its board, its shareholders, and other stakeholders. It establishes the rules and procedures for decision-making, ensuring accountability, fairness, and transparency in a company's relationships with everyone it interacts with.

This aspect is critical because it defines how power and responsibilities are allocated within the organization, influencing the company's ability to achieve its objectives. Good corporate governance is essential for maintaining investor confidence, enhancing the company's reputation, and ensuring long-term sustainability. In contrast, while financial reporting, human resource management, and operational efficiency are all important components of a business, they fall within the broader operational and strategic functions of a company, rather than the specific governing framework that corporate governance encapsulates.