What is meant by 'corporate governance'?

Corporate governance refers to the structures and processes for the direction and control of companies. It encompasses the mechanisms through which companies, and their stakeholders, are held accountable, ensuring transparency, fairness, and responsibility in a company's relationship with all its stakeholders, including shareholders, management, customers, suppliers, financiers, government, and the community.

Option A accurately captures this concept as it emphasizes the system by which companies are directed and controlled. This system includes practices like board oversight, rights of shareholders, and a proper framework for the accountability and management of the organization.

The other choices do not align with the definition of corporate governance. While laws regulating corporate competition relate to anti-trust considerations and market fairness, they do not govern the specific internal mechanisms of a corporation. The framework for employee rights within a company is more pertinent to labor law than corporate governance, which is more focused on the overarching management structure. Lastly, managing corporate taxes falls under taxation policies and financial management, which, while important, are not encompassed within the framework of corporate governance itself.