What connection exists between corporate governance and a business simulation?

The connection between corporate governance and a business simulation is fundamentally rooted in the principles of trust, accountability, and transparency that underpin good governance practices. When corporate governance is effectively implemented, it enhances stakeholder trust, including that of investors, employees, customers, and the broader community. This trust is critical in a business simulation, where realistic decision-making and ethical considerations model real-world scenarios.

In the context of a business simulation, strong corporate governance can lead to improved overall company performance. Participants in the simulation are likely to experience better decision-making outcomes as governance structures guide them in considering the implications of their choices on various stakeholders, setting the stage for sustainable business practices. As these participants adhere to good governance practices, they may lead their simulated companies toward greater success, evidenced by metrics such as profitability, market share, and reputation—all key indicators often tracked in business simulations.

Other options might explore different facets of business operations, but they do not establish the same significant connection as the enhancement of trust and performance driven by effective corporate governance.