Which entity controls management and staff and is accountable to shareholders?

The Board of Directors is the entity that plays a crucial role in managing and overseeing the activities of a company, acting as the link between the shareholders and the company's operations. This board is composed of individuals elected by the shareholders, and they are responsible for making key decisions that affect the management of the company, including setting policies, approving budgets, and ensuring that the organization adheres to its strategic objectives.

Furthermore, the Board of Directors has a fiduciary duty to act in the best interests of the shareholders, making them accountable for the management and overall performance of the organization. Their ability to hire, evaluate, and even fire top management empowers them to guide the company effectively.

In contrast, internal auditors primarily focus on assessing and improving an organization's internal controls and risk management processes. They report findings directly to the board but do not have direct control over management decisions. Government agencies oversee compliance with laws and regulations but do not directly control management or staff. Non-governmental organizations (NGOs) generally serve social or community purposes and are not structured to manage or control the activities of for-profit companies.