Abstract
This paper aims to highlight the key role that corporate governance plays in increasing the efficiency and the economic growth of organizations, including the public institutions. The benefits and effects that Corporate Governance offers have led to the expansion of the practice in question, including in the public sector. Although the mission of the public sector is a social one, it differs significantly from that of the private sector – which is the economic one, however, a number of corporate governance traits are specific to both sectors, and the aim of each sector is to streamline management and improve the internal control system. The study highlights the reasons that have led to growing interest in corporate governance in the public sector, providing the possibility to identify optimal solutions to prevent negative practices of fraud and financial failure.
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