What metrics are typically used to assess corporate governance?

The choice highlighting board structure and corporate policies is the most relevant metric for assessing corporate governance. Effective corporate governance relies heavily on the composition and functioning of the board of directors, which is responsible for providing oversight and direction for the company's management and strategic decisions. Board structure encompasses aspects such as the diversity, independence, and expertise of board members, which can significantly influence a company's governance quality.

Additionally, corporate policies, including policies on ethics, compliance, and risk management, are crucial in determining how well a company adheres to governance standards. These policies help ensure transparency, accountability, and integrity within the organization, which are essential components of sound corporate governance. Overall, metrics related to board structure and corporate policies are integral to evaluating how effectively a company governs itself and manages stakeholder relationships.

In contrast, while market share and revenue growth reflect a company’s financial performance, they do not provide insights into governance practices. Customer satisfaction scores and employee turnover rates, although important for assessing operational efficiency and workplace culture, are not direct indicators of governance structures. Therefore, the metrics that focus specifically on governance, such as board composition and corporate policies, are key to evaluating corporate governance.