Corporate governance codes and compliances in India
Dr. Syed Husain Ashraf
Corporate governance plays an important role in protecting investors for the smooth functioning of companies and financial institutions, and the stability of the financial sector. The standards of good governance have been a major component of global financial standards and many regulators view effective corporate governance as ‘the first line of defense’ in various supervisory activities. Since the Asian crisis of 1997 significant attention has been placed on improving the ability of boards, managers, and owners to steer their companies to fast changing and volatile market conditions. A decade later, the global financial crisis did send a glaring reminder that better corporate governance is not only a matter for developing countries, but also for advanced economies, where the shockwaves started. At the same time the world has never been as ambitious about developments as it is today. After adopting the Sustainable Development Goals and signing the Paris climate deal at the end of 2015, the world is now looking to implement and finance these recommendations. The private sector will have to play a key role, by creating the jobs and mobilizing the resources in developing countries to end poverty in sustainable ways.