It has elements of leadership, stewardship, ethics, security, vision, direction, influence, and values. Corporate governance is about protecting stakeholder interests in the organization. Customers have needs to be met, and organizations are a means of organizing the diverse elements required to meet those needs efficiently and effectively. All forms of organizations exist to serve a purpose of creating value to meet the expressed or perceived needs of their customers. For-profit organizations have an additional complexity in the concept of ownership interests.
Ownership is a common trait of all organizations, but it is more forceful in for-profit ones.
One of the ways managers can come to grips with corporate governance concepts is through a model such as the Governance Loop. The Governance Loop is a model of the factors and forces involved in corporate governance. It begins with the basic Wealth Loop. Customers have needs, and the organization attempts to fulfill those needs by developing plans and allocating resources to provide goods and services to meet those needs. The Wealth Loop at this stage does not provide Leaders with information upon which to formulate future plans, except in the form of current receipts from sales of product.