Banks, as funding organizations and advisors with the requisite expertise, have a comparative advantage to promote socially and environmentally sustainable business that will decide the development and direction of the economy.

Corporate governance is a system for evolving the corporate culture of consciousness, transparency and openness. It aims at enabling an organization to maximize the shareholders' long-term value by referring to combination of laws, rules and regulations, procedures and voluntary practices. In short, its ultimate objective is to increase customer satisfaction, shareholder value and wealth which are integral to the very existence of an organization.

Further, corporate governance can be defined as managing everything better to improve relationships between corporates and their shareholders, to encourage people to think long-term, to ensure that the information needs of all the stakeholders are met, and to ensure that the executive management is monitored properly in the best interest of the shareholders.

Since corporates are owned by a large number of shareholders, it is practically impossible for the latter to take part in their management or even supervise them directly. The board of directors are appointed as shareholders representatives who in turn appoint the top management, other managers and employees. But in actual management of the company, the board only takes an overview and does not involve itself to the nitty gritty of the operations rather expected to set right any wrong practices of the management.

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