Corporate Governance: Changing Business Scenario

Globalisation has not only significantly increasing and intensifying business risks, but also it has compelled Indian companies to adopt international norms of transparency and good governance. Corporate Governance policy recognises the challenge of the new business reality. Corporate Governance must provide empowerment to the executive management of the Company and create a mechanism of checks and balances. The practice of policy on Corporate Governance leads to the creation of the right corporate culture in which the company is managed, that fulfils the purpose of Corporate Governance. Corporate Governance is the application of best management practices, compliance of law in true letter and spirit and adherence to ethical standards for effective management and distribution of wealth and discharge of social responsibility for sustainable development of all stakeholders. Equally, in the resultant competitive context, freedom of executive management and its ability to respond the dynamics of a fast changing business environment will be the new success factors.