1. Corporate governance is a set of rules and policies which governs a company.
2. It provides a frame work for managing a company and achieving its objectives.
3. It gives guidelines for internal control, performance measurement and corporate disclosure.

The development in the IT and tele communications has created a global market. Technology is widely used in conducting market research for understanding the special needs of the customer. Data-mining and data analytics are used to know the customer better. Technology is used in managing inventory, storing goods in warehouses, in distributing goods and in receiving payment. This dynamic environnment includes the following;
(i) The level of technology available within the country
(ii) The rate of change in technology
(iii) Technology adopted by competitors
(iv) Technological obsolescence

The Indian Corporate Governance framework requires listed companies,
(i) To have independent directors on the board; Atleast one-third of the directors have to be independent directors.
(ii) To have atleast one independent woman director.
(iii) To disclose all deals and payments to related parties.
(iv) To disclose details of managerial compensation
(v) CEO and CFO to sign stating that the governance norms have been complied with in the financial statements.

(i) A business in order to remain successful and competitive has to adapt to the constantly changing environment.
(ii) The formulation of strategic decisions, policies and programs requires an understanding of the environmental factors impacting the business.
(iii) Therefore scanning of the environment for identifying threats and opportunities is essential for any business.

The significance of understanding business environment is as follows
(i) Helps in formulating strategy and future planning
(ii) Enables to identity the opportunities available
(iii) Environment scanning
(iv) Business aids
(v) Public image
Internal factors affecting business:
(a) Values system:
The values of the founder/owner of the business, percolates down to the entire organization and has a profound effect on the organisation.
(b) Vision and objectives:
The vision and objectives of a business guides its operations and strategic decisions.
(c) Management structure and nature:
The structure of management/board and their style of functioning, the level of professionalism of management and the composition of the board are the various factors which affects the decision making.
(d) Internal power relations:
This refers to the internal power relations that exist in an organisation.
(e) Human resources : 
The success of an enterprise is solely dependent on its manpower. Therefore the quality, skill competency, right attitude and commitment of its human resources is essential for the success of an organisation.
(f) Company image:
The image of an organisation plays an important role in introducing new products, selecting agents and dealers for distribution, forging alliances with suppliers, expanding and entering new markets both domestic and international, raising finance etc.

.The macro environment factors are as follows:
(1) Economic environment: The business is an integral part of the econonnic systenn prevalent in a nation. The nmultiple variables in the macro environnnent system include:
(a) he nature of economy baned on the stage of development.
(b) lhe nature ofcconomie system.
(c) he economic pollckes of he natlon.
(d) he cconomtic indlces.
(e) Developmentof financial market.
(f) he economicstructure.
(ii) Socio-Cultural environment: Social environment refers to the sunm total of factors of the society inwhich the business is located. It is dynamic and includes the behaviour of individuals, the role and inmportance of family, customs, traditions, beliefs and values, religion and languages, thc ethical values.
(iii) Political and Legal environment : The framework for running a business is given by the political and legal environment. The success of a business lies in its ability to adapt and sustain to political and legal changes.
(iv) Geo-physical environment : Thenatural, geographical and ecological factors have a bearing onthe business. These are as follows :
(a) the availability of natural resources
(b) the weather and climatic conditions
(c) topographical factors
(d) ecological factors
(e) location of certain industries
(f) availability of natural harbours.
(v) Technological environment:  The development in the IT and telecommunications has created a global market. Technology is widely used in conducting market research for understanding the special needs ofthe customer..