Considering
the importance of corporate governance in the context
of sustainable development, this paper intends to judge
the responsibility of the Indian corporate sector towards
its various stakeholders. The prime objective of this
exploratory study is to know the composition of boards
of the corporate units working in India. The corporate
governance of Indian companies has been analyzed for
the year ending as on March 31, 2004 for the study.
One hudered companies in India are taken as a random
sample for the study. The main source of data is the
annual reports of the sample companies.
In
long run, a corporate tree needs to be strong, healthy
and spreading. Its fruit must be shared among all parties
in its progress, i.e., among shareholders, lenders,
employees, the government and last but not the least,
society. One mantra which emerges undisputed
above all is that corporate institutions have to focus
more on their corporate governance in order to maintain
their growth rate, whether it may be a corporate unit
or society. Good governance can improve the public's
faith and confidence in the organization. It can enhance
wealth creation, ensuring the efficient management of
wealth and equitable sharing of wealth among all shareholders.
The
Indian society has all that true corporate governance
warrants from the period of lord Krishna and Ram, which makes us clear about transparency
and accountability, the foundation of the concept of
corporate governance.
The
main objective behind corporate governance is to protect
long-term shareholder value along with the other stakeholders.
It is the foundation to build market confidence and
encouraging stable and long-term foreign investment
flows. Corporate institutions should have a sound framework
for their operation to achieve their objectives and
creating wealth for the welfare of the society as a
whole. Corporate governance is a very wide term, which
covers a wide range of activities that relate to the
way business organization is directed and governed.
It deals with the policies and practices that directly
impact on the organization's performance, stewardship
and its capacity to be accountable to its various stakeholders. |
