Corporate governance: Issues, Opportunities and Challenges
Shamshuddin M Nadaf, Dr. B S Navi
In today’s globalised world, corporations need to access global pools of capital and to attract and retain the best human capital from various parts of the world. Under such a scenario, unless a corporation embraces and demonstrates ethical conduct, it will not be able to succeed. Ever since India's biggest-ever corporate fraud and governance failure unearthed at Satyam Computer Services Limited, the concerns about good Corporate Governance have increased phenomenally. The rapidly increasing economic growth that corporate India witnessed the high profile governance failure scams since the 1990s brought to the forefront the need for Indian companies to adopt corporate governance practices and standards, which are consistent with international principles and standards. A number of studies in India and abroad have indicated that markets and investors take notice of well managed companies and respond positively to them. The Corporate Governance issue has emerged primarily because of the growing importance of corporations in the national economies and their interaction with the international agencies and institutions. This form of management is also designed to limit risk and eliminate corrosive elements within an organization with haste. Hence, it imperative for a corporation to be fair and transparent to all its stakeholders in all its transactions by adhering to the best corporate governance practices.