The aim of `good corporate governance' is to ensure the commitment of the board in managing the company in a transparent manner for maximizing long-term value of the company for its shareholders and all other partners. Corporate governance also displays the administration of the corporate business with full regard to the laws, rules and regulations of business and adherence to the concept of social responsibility with good business results. This article examines the Indian corporate governance scenario in the light of recent corporate frauds and offers possible solutions which can be considered to reform the governance framework in the country. It seeks to put in perspective the progress made in India regarding the adoption of best practices for the constitution and functioning of good corporate governance.

Corporate governance today is one of the most discussed topic, not only in the country, but in the world too, particularly in view of certain major corporate failures like - Enron US (inflated earnings, concealing debts in special purpose entities, dubious accounting practices), Tyco US (looting by CEO, improper share deals evidence of tampering and falsifying business records), WorldCom US (accelerated revenue recognition), Paramalt Italy (false transaction recorded) including India's biggest ever corporate fraud of Rs. 7,136 cr committed at Satyam. This fraud is not just a case of company involving in fraud but is apparently a an instance of the collective failure of corporate governance system. As such, it is now incumbent on the government, regulatory authorities and company managements to cooperate and enforce the highest standards of corporate governance, both in letter and spirit, so as to prevent such disasters. The silver lining in the Satyam episode is that it had opened a window of opportunities for corporate governance reforms in the country.

Corporate governance is a set of processes, customs, policies, laws and institutions affecting the way a corporation is directed, administered or controlled. It also includes the relationships among the many stakeholders involved and the goals for which the corporation has been set up. The principle stakeholders are the shareholders, management and board of directors and other shareholders include customers, creditors, (e.g., bank bondholders) employees, regulators and the community at large.

Global CEO Magazine, Corporate Governance, Corporate Frauds, Corporate Objectives, Corporate Objectives, Corporate Structure, Corporate Social Responsibility, CSR, Crime Investigation Department , CID, Financial Reporting Process, Financial Reporting Process, Institute of Chartered Accountants in India, ICAI.