Preview

Corporate Governance Rating in India

Powerful Essays
Open Document
Open Document
1585 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Corporate Governance Rating in India
Sustainable growth and success of any country or society depend upon collective function of its resources, starting from the vast use of natural resources, strategic, geographic location, labour (people) and intellectual capital. In a society where private participants have prominent role in utilization of all these resources, governance or public governance plays a vital role in sustainable development of the society. Governance, as it is said relates to decisions that define expectations, grant power or verify performance. It consists either of a separate process or of a specific part of management or leadership processes. Sometimes people set up a government to administer these processes and systems.1 Public governance is more complex but important in all kinds of society. It is involved in the most of the aspects of society, in one and another way. Relevance of public governance determines culture, quality of life, and sustainable development of society. A complete public governance system with all its strengths will help to build a great and potential culture and society.
Like public governance, corporate governance is governance of affairs of a company by its stakeholders. As public governance is people’s democracy, corporate governance is stakeholders’ democracy. Corporate governance looks at the complete governance of corporations from their very beginning in entrepreneurship, through their governance structures, legal framework, privatizations, to market exit and insolvency. The integrity of corporations, financial institutions and markets is particularly central to the health of our economics and their stability. Good governance creates a strong future for an organization by continuously steering towards a vision and making sure that day-to-day management is always lined up with the organization 's goals. ***The basic objective of corporate governance (CG) in companies is to maximize shareholders’ value in the context of its corporate mission by



Bibliography: • http://www.corpgov.net/ • http://www.rediff.com/money/2009/jan/19satyam-what-india-must-do.htm • http://www.ifc.org/ifcext/CorporateGovernance.nsf • http://phx.corporateir.net/phoenix.zhtml?c=146827&p=irol-govhighlights • http://www.rediff.com/money/2009/jan/19satyam-what-india-must-do.htm • http://www.ecgi.org • www.oecd.org • Corporate Governance Wikipedia Report. • Business World.

You May Also Find These Documents Helpful

  • Powerful Essays

    main reasons. First, different stakeholders have different goals and preferences. Second, the stakeholders have imperfect information as to each others actions, knowledge, and preferences. Corporate governance (CG) is an important effort to ensure accountability andresponsibility and is a set of principles, which should be incorporated into every part ofthe organization. Though it is viewed as a recent issue, there is, in fact, nothing newabout the concept. Because it has been in existence as long as the corporation itself-aslong as there has been large – scale trade, reflecting the need for responsibility in thehandling money and the conduct of commercial activities.…

    • 2179 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Corporate governance is a commonly used phrase to describe a company’s control mechanisms to ensure management is operating according to policies and regulations. Examples of such mechanisms are a company’s internal controls systems, internal audits, external audits, and an audit committee. Corporate governance aims to prevent accounting abuse and fraud. A strong corporate governance system is built upon a strong ethical foundation that supports producing precise and transparent financial statements..…

    • 932 Words
    • 4 Pages
    Better Essays
  • Better Essays

    “Corporate governance is a term that refers broadly to the rules, processes, or laws by which businesses are operated, regulated, and controlled. The term can refer to internal factors defined by the officers, stockholders or constitution of a corporation, as well as to external forces such as consumer groups, clients, and government regulations” (2006).…

    • 841 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Cg in Insurance Sector

    • 8975 Words
    • 36 Pages

    Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled. Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. The principal stakeholders are the shareholders, the board of directors, employees, customers, creditors, suppliers, and the community at large.…

    • 8975 Words
    • 36 Pages
    Powerful Essays
  • Good Essays

    The guidelines of corporate governance aim to achieve greater transparency, fairness and hold executive management of the organization accountable to shareholders. In doing so, corporate governance plays a pivotal role in protecting shareholders and, in the meantime, duly consider the interest of the organization at large without prejudice to employees' rights. Whilst executive management should have reasonable level of power to run the business, corporate governance ensures that such powers are set to practical dimensions in order to minimize misuse of authority to serve objectives not necessarily in the best interest of the shareholders. Therefore, it provides a framework for maximizing profits , promoting investment opportunities and eventually creating more jobs.…

    • 1605 Words
    • 7 Pages
    Good Essays
  • Good Essays

    Corporate governance - corporate governance involves regulatory and market mechanisms, and the roles and relationships between a company’s management, its board, its shareholders and other stakeholders, and the goals for which the corporation is governed.…

    • 1690 Words
    • 7 Pages
    Good Essays
  • Good Essays

    More research is needed to better understand the many aspects of the relationship between corporate governance and firm performance in emerging markets. Published research is limited. But, because emerging market firms are generally affiliated with multiple networks connected by formal or informal ties, the structures themselves present challenges for quantification and scientific data analysis.…

    • 314 Words
    • 2 Pages
    Good Essays
  • Better Essays

    The High Level Finance Committee Report 1999 on Corporate Governance in Malaysia defined corporate governance as the “process and structure used to direct and manage the business and affairs of the company towards enhancing business prosperity and corporate accountability with the ultimate objective of realizing long term shareholder value, whilst taking into account the interest of other stakeholders.” (Malaysian Code on Corporate Governance, 2012).…

    • 2443 Words
    • 10 Pages
    Better Essays
  • Good Essays

    FA Assignment

    • 1116 Words
    • 5 Pages

    Corporate governance is the set of principles and practices that a corporation uses to regulate the relationship between the shareholders and the professional managers hired by the board of directors. Because the financial statements are an important channel of communication between the managers and the shareholders, the financial statements are crucial to the process of corporate governance (Stice & Stice, 2006).…

    • 1116 Words
    • 5 Pages
    Good Essays
  • Better Essays

    corporate governance

    • 928 Words
    • 4 Pages

    Since governance is the process of decision-making and the process by which decisions are implemented, an analysis of governance focuses on the formal and informal actors involved…

    • 928 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Corporate governance is defined as the system by which business entities are monitored, managed and controlled. Corporate governance practices have become an essential prerequisite for the ability to acquire and retain financial resources…

    • 3966 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    Ge Ms

    • 4358 Words
    • 18 Pages

    Corporate governance is concerned with the structures and systems of control by which managers are held accountable to those who have a legitimate stake in an organization. It has become an increasingly important issue for organizations for three main reasons.…

    • 4358 Words
    • 18 Pages
    Powerful Essays
  • Good Essays

    Corporte Governance

    • 4445 Words
    • 18 Pages

    Corporate Governance is the set of processes, customs policies, laws and Institutions affecting the way the corporation (Company) is directed, administered or controlled. Corporate Governance also includes the relationships among the many stakeholders involved in the goals for which the corporation is…

    • 4445 Words
    • 18 Pages
    Good Essays
  • Good Essays

    foreign entry

    • 875 Words
    • 4 Pages

    Corporate governance refers to the system of structures, rights, duties, and obligations by which corporations are directed and controlled. The governance structure specifies the distribution of rights and responsibilities among different participants in the corporation (such as the board of directors, managers, shareholders, creditors, auditors, regulators, and other stakeholders) and specifies the rules and procedures for making decisions in corporate affairs. It, also provides the means through which firms undertake ethical behaviors, CSR, and sustainability. ‘…

    • 875 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Corporate governance is a system of structures and processes to direct and control organizations and companies. It is considered to be one of the most critical factors today in improving the overall business practices in the globalized world and in bringing in more value to shareholders and stakeholders. Most countries at present have introduced Codes and Principles of Corporate Governance into the regulatory framework by central bank and the stock exchange regulators. Corporate governance is important for companies and firms as it specifies the distribution of rights and responsibilities among company’s stakeholders (including shareowners, directors, and managers) and articulates the rules and procedures for making decisions on corporate affairs. Thus, corporate governance provides the structure for defining, implementing, and monitoring the goals and objectives of companies, and ensuring accountability to appropriate stakeholders. Special emphasis is being placed in recent years…

    • 10514 Words
    • 43 Pages
    Powerful Essays

Related Topics