公司治理作为一个概念，广泛地建议流程、关系和机制，通过这些流程、关系和机制，零售部门内的组织沉迷于运营、方向和控制。治理的原则和结构确定了不同组织参与者之间的责任和权利分配(Illiev et al .， 2015)。这包括董事会、股东、监管机构、审计机构、债权人和其他利益相关者群体。治理包括在零售部门内为公司决策制定的程序和定义的规则。公司治理包括在监管、社会和市场环境背景下定义和遵循公司目标的过程(Illiev et al .， 2015)。治理的机制包括监视策略、实践、行动、组织决策、相关代理以及受影响的涉众。公司治理的实践通过协调利益相关者的利益而受到影响。现代企业内部与公司治理相关的实践中出现了对具体责任的更高兴趣(Larcker and Tayan, 2015)。由于与会计欺诈有关的许多知名机构的倒闭，以及最近的经济危机，这一比例有所上升。
有效的公司治理实践对零售业有许多好处。良好的公司治理可以带来经济增长和企业成功。它进一步增强了投资者的信心，从而使零售组织能够有效地筹集资金和提高效率。此外，适当的公司治理有助于降低资本成本，并对股票价格产生积极影响(Ntim和Soobaroyen, 2013)。这也为管理层和组织所有人提供充分的诱因，促使他们实现符合组织本身和公司股东利益的目标。有效的公司治理进一步允许零售组织减少浪费，最大限度地减少腐败以及管理不善和风险(Chhaochharia et al .， 2012)。这也有助于零售行业内企业在品牌形成与快速发展的结合。公司治理所提供的总体优势是，以满足所有关联方最大利益的方式管理组织。
Corporate governance as a concept, widely suggests processes, relations and mechanisms through which organizations within the retail sector indulge in operations, directions and controls. The principles and structure of the governance identifies the responsibility and rights distribution between varied organizational participants (Illiev et al, 2015). This involves board of directors, shareholders, regulators, auditors, creditors and other stakeholders group. The governance involves procedures and defined rules for corporate decision making within the retail sector. Corporate governance involves the processes with the help of which objectives of the company are defined and followed within the regulatory, social and market environmental context (Illiev et al, 2015). The mechanisms of the governance include monitoring of the policies, practices, actions, organizational decisions, associated agents along with the stakeholders that are affected. The practices of corporate governance are impacted through the effort of aligning the stakeholders’ interest. The higher interest was emerged within the practices related to corporate governance within the corporations of modern times in regard to accountability in specific (Larcker and Tayan, 2015). This was increased due to the collapse of numerous high profile organizations associated with fraud in accounting followed by the recent economic crisis.
Various types of organizational scandals have remained public and the maintained political interest within the corporate governance regulation. Such as MCI Inc. and Enron in the United States that can be exemplary within this context due to which the Sarbanes-Oxley Act was enacted in the year of 2002 (ArAs, 2016). This US federal law was integrated for the purpose of restoring the confidence of public within the corporate governance.
There are various benefits of effective corporate governance practices in retail sector. Economic growth and corporate success can be derived through good corporate governance. It further strengthens the confidence of the investors that can result in enabling retail organizations to rise funding effectively as well as efficiency. Moreover, appropriate corporate governance assists in reducing the cost of capital along with having a positive impact on the prices of the share (Ntim and Soobaroyen, 2013). This also delivers adequate inducement to the management and organizational owner for the achievement of objectives which are in the interest of both the organization itself and the shareholders of the company. Effective corporate governance further allows the retail organizations to reduce the wastages, minimization of corruption along with mismanagement and risks (Chhaochharia et al, 2012). This also helps the companies within the sector of retail in brand formation coupled with rapid developments. The overall advantage provided by corporate governance is management of organization in such manner that the best interests of all associated parties are catered.