Corporate Governance Practices in India

Corporate governance against the backdrop of globalization has become a delicate and onerous take for survival as well as for seizing the opportunities. Good corporate governance cascades form a set of core values that need to be instilled at all levels of the organization. The quality of governance will become one of the key tests and one of the major drivers of shareholder value. Better governance would facilitate easier access to capital from domestic market. A transparent regulatory framework and better disclosure systems are crucial for attracting foreign investors as well. In the new environmental context, corporate governance is no longer a luxury but a necessity. There is a gap between precept and practice of corporate governance. While there are enough examples of inadequate corporate governance, examples of good corporate governance are few. Feudal mindset, manifold regulations, lack of concern for society, a sense of insecurity and greed are some of the reasons for this. Though corporate governance is often thought about as a ‘soft’ issue, that in no way undermines its importance. ‘Soft’ it may be, but hardheaded investors increasingly place their money on these so-called soft issues.