Corporate Governance – Emerging Challenges

The level of state and investor interest in corporate governance

remains most intense during times of crisis or downturns. Of late, there
has been increasing pressure from institutional investors and securities
analysts for much greater disclosure of financial data and corporate
strategy, plus improvements in shareholder value (e.g. buybacks,
dividends) and the emergence of shareholder engagement and
activism which has put a greater stress on corporate governance.

Corporate governance needs to be re-defined in resonance with

emerging needs for greater engagement being sought from corporate
sector in the sustainable development of the country. It has to be
engineered towards larger involvement through effective and
purposeful engagement by the corporate sector to create an
environment, both within and outside their domain of work and ethics.
New corporate governance strategies should be designed as
partnerships for not financial profits but social and environmental
profits as well.

Flexibility, transparency and accountability are now recognised as

crucial governance features. To remain competitive, the corporations
not only need to enhance their reaching international and domestic
markets, but to also Base of Pyramid avenues to create a social value
along their businesses.

The purpose of any business that seeks to be sustainable has to be

more than generating short-term shareholder value. This includes
building trust among communities and maintaining a healthy
environment in which to do business. All of these benefits are created
in the normal course of responding to market signals.

In the Indian context, a shift in corporate attitudes towards governance

and inclusion of corporate social responsibility as a part of the
corporate governance is very noticeable. There has been an increment
in governance quality among listed companies.

The objective of this Conference will be discussing the contemporary

issues with regards to corporate governance in India. It shall be an
effort to encourage India Inc. to raise the standard of its governance in
a step towards achieving stability and growth.

Through this platform the NFCG shall be to reach out to top corporate
representatives in India. The conference shall prove to be an
appropriate stage to impress the changing the dynamics of corporate
governance to Industry Captains and to also share the work that NFCG
is doing in raising the level of corporate governance in India.

Disclosure –
Voluntary disclosures exhibit enhanced sense of accountability of
corporates and manifest their commitment to transparent function.
Disclosures have two tangible benefits – on one hand, they help in
developing strong sense of faith among investors and stakeholders at
large. On the other hand, it also helps in identifying the future
challenges and assist in formulate strategies to tackle these.