corporate governance

The Cadbury Committee in the UK defined corporate governance as “the system by which companies are directed and controlled.”  To a great extent, this is true. The need for corporate governance has increased, particularly due to the increasing number of scams that are being reported, such as Satyam and Nasscom. Corporate governance in India aims to establish better transparency and responsibility in governing the way corporations are  managed. Further, corporate governance in India helps a company to meet the laws that stipulate various legal and environmental requirements and also to build trust with the general public about the efficiency of the system that it follows.

Are you aware of the corporate scandals that took place in the U.K  during the 1980s? The sudden bankruptcy of the Bank of Credit led to such public fury in the UK that it finally led to the development of corporate governance. Today, we all recognize that one of the main buzzwords in the business world is corporate governance. Typically, corporate governance relates to the arrangement by which companies are run. Let’s discuss its meaning in detail to understand it better.