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To gain the trust of clients and staff and comply with industry regulators, financial services firms must practice within the highest ethical standards. Corporate Governance is the process and structure used to guide and direct the business affairs of corporations. This module reviews why a corporate governance system is important and how it is implemented within an organization. Corporate governance practices in Canada are explored, including relevant legislation in Canada and the U.S. The module includes a discussion of how corporate governance might affect a firm's performance and how policy development in Canada reflects the perceived importance of corporate governance practices in the financial services industry.