The improving transnational transaction as well as the changed marketing dynamics has brought an immediate need for the research and comparison of the corporate governance mechanisms of the nation. Corporate governance refer to the rule of law, transparency, accountability as well as the protection of public interest in the management of an organization’s affairs in the prevailing global, competitive and digital environment. It is the most important global issues alongside serious challenge and implication on almost all sectors. Economies including India, are coping with problems related to poverty, child-rights, community welfare etc. and are a hot bed for an impressive Governance Scenario which is still forming up. As India is going through the economic boom and commercial success, corporate governance is being presented as as an opportunity and a crucial requirements for corporates to be involved into. This can assist the corporates to contribute towards faster and more balanced growth of our society. In case one studies this global scenario, all development has taken place in those countries where corporate governance activities are to the maximum.
The impacts a firm has on the community and the environment can’t be ignored. CEOs used to frame thoughts like these in the context of moral responsibility, but now, it’s also about growth and innovation. In the future, it will be the only way we do business. Corporate governances is an extremely poorly defined concept. It is hard to give a top definition in one sentence. Corporate governance is succeeding in attracting a great deal of interests of the public because of its obvious importance for the economic health of corporations and society in general. Corporate Governance shows, employees enjoy the enhanced systems of management so much and also enjoy the fruits of better economic growth in a responsible way. Corporate governance and economy development are connected. Efficient corporate governance systems promotes the developing of strong finance systems irrespective of whether or not they are largely bank-based or market-based that have an unmistakable positive effect on economic growth and reducing poverty. One of the crucial concepts of sustainability is defining materiality basis of the stakeholder engagement. Firm itself decides which concerns are reasonable and need to be addressed.
Corporates have a huge role to play in shaping this nation’s success, and they must be committed to making their financial, technical and intellectual resources to design and implement sustainable solutions that benefits all. Sustainability will stay till it becomes an intrinsic part of every firm’s part. It is akin to the quality revolution of the past which was debated, discussed and finally integrated into the firm’s culture in some way that now it is impossible to imagine a world without quality. As Indian firms compete globally for the accessing of capital markets, several people are finding that the ability to benchmark against world-class organizations is essential. Indian corporations are emerging on a global level as well as discovering that the previous ways of doing businesses are no longer sufficient in such a fast paced whole society.