Corporate Governance in SOEs

Corporate governance in State-Owned Enterprises (SOEs) refers to the systems, rules, and processes that ensure these government-controlled companies operate effectively, transparently, and responsibly. It involves balancing the interests of the government as owner, the company’s management, employees, and the public. Good governance helps prevent corruption, encourages efficiency, and aligns the SOE’s activities with public goals. Clear oversight by boards, accountability mechanisms, and proper risk management are key components, ensuring that the company serves its broader social and economic objectives while maintaining financial integrity.