The Role of Law in Strengthening Corporate Governance and Accountability

Abstract

In the past few years, there has been increased recognition of the law's critical role in creating corporate governance and guaranteeing accountability. Against increased global interconnectedness, legal frameworks reinforcing transparency and responsibility have become indispensable for fostering ethical corporate conduct and mitigating misconduct risks. The study aims to investigate the effectiveness of legal provisions in improving corporate governance systems, with a particular emphasis on how enforcement mechanisms might strengthen managerial responsibility and shareholder protection. A normative juridical approach was used; the research draws upon statutes, regulatory guidelines, and landmark cases, analyzed through qualitative content analysis. The data were collected from legislative repositories, court archives, and relevant scholarly works, allowing for a comprehensive exploration of legal norms and their real-world applications. The comparative method adopted in this study highlights variations across different jurisdictions, underscoring the influences of domestic regulations, international standards, and cultural contexts. The findings reveal that, while clear legislative frameworks provide a solid foundation for good governance, the degree of enforcement—facilitated by resourceful regulatory authorities and open corporate self-governance—determines the extent of responsibility.  Consistent oversight, prompt sanctions, and stakeholder involvement were identified as essential factors in deterring misconduct. The study recommends a more integrated approach, combining robust legislation with targeted enforcement strategies to strengthen corporate governance and foster a worldwide accountability culture.