What does good governance, according to the UK Corporate Governance Code, aim to facilitate?

Good governance, as outlined in the UK Corporate Governance Code, primarily aims to ensure effective management practices that lead to long-term sustainable value for shareholders. The focus is on balancing the interests of various stakeholders, including shareholders, employees, customers, and the community, while ensuring that the company is managed in a transparent and accountable manner. This encompasses aspects like strategic direction, risk management, and maintaining high ethical standards, all of which contribute to enhancing shareholder value without resorting to strategies that may undermine the company's stability or reputation over the long term.

The other options do not align with the core principles of good governance as prescribed by the UK Corporate Governance Code. For example, strict regulatory compliance is important, but governance emphasizes a broader approach that includes strategic decisions rather than merely adhering to regulations. Similarly, while employee satisfaction can contribute to overall performance, the UK Corporate Governance Code places a stronger emphasis on achieving sustainable shareholder value rather than focusing solely on employee metrics or short-term profit maximization, which can often lead to unethical practices or choices that compromise long-term success.