What is one primary objective of corporate governance?

One primary objective of corporate governance is to enhance the transparency and accountability of the corporation. This entails ensuring that all actions and decisions made by the company are open to scrutiny and can be understood by stakeholders, including shareholders, employees, and the public. Transparency helps build trust among stakeholders, as they can see how decisions are made and how the corporation operates. Accountability refers to the responsibility of management and the board of directors to make decisions in the best interests of the corporation and its shareholders, ensuring that they are answerable for their actions.

While maximizing short-term profits, limiting shareholders' influence, and establishing competitive advantages might be related to a corporation's operations, they do not capture the essence of corporate governance. These goals could lead to practices that may compromise ethical standards or stakeholder interests if not guided by the principles of transparency and accountability. Hence, the emphasis on these principles is crucial to creating a sustainable and ethical corporate structure.