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Journalism of Courage
Indian companies are increasingly adopting best global practices,but they need to have regular evaluation at all levels to sustain good corporate governance,says an expert.
“Corporate governance has evolved enormously in India and many big companies in the country are committed to embrace global best practices for their business,” Stephen Wagner,Chairman Emeritus of global consultancy Deloitte’s Global Centre for Corporate Governance,said.
In India,the issue of corporate governance came into sharper focus after the Rs 14,000 crore Satyam accounting fraud by its founder-chairman Ramalinga Raju came to light.
“Good governance at companies usually translates into good financial numbers while just having good names on the (firms’) board need not ensure the same,” he said.
Wagner pointed out that regulations,especially those related to corporate governance,should be framed after taking into consideration the view points of all market participants.
There should be an annual evaluation process in place to assess the effectiveness of a board as well as corporate governance in companies,he added.
On risk-taking by companies,he said their approach towards managing shocks has changed in the recent years.
“Entities should anticipate and be more prepared to tackle risks and shocks,mainly since the world is getting more interconnected that is also resulting in connectivity of shocks,” Wagner noted.
