Corporate governance: Need for changing scenario

Pages: 375-377
Alka Rani (Department of Commerce, Sri Guru Hari Singh College, Sri Jiwan Nagar, Sirsa, Haryana)
Veena Gautam (Department of Commerce, Chaudhary Devi Lal University, Sirsa, Haryana)

Corporate governance is about ethical conduct of business. Corporate governance is mechanism to maximize the wealth of owners by optima utilization of resources and managing the organization in more transparent way. Corporate governance is about promoting corporate fairness, transparency and accountability. Since the commencement of liberalization process, economic scenario began to change. Globalization has not only significantly heightened business risk but also compelled Indian economy to adopt good governance. Foreign investment is means for economic growth of developing countries like India. When investors make investment, they consider two variables, capital and risk transparency. Strong corporate governance help to ensure long term success, weak system leads to serious problems. The situations grew from bad to worse in following decades and corruption; inefficiency became the hallmarks of Indian corporate sector. Satyam episode, Harshad Mehta securities scam, UTI scam, Ketan Parikh scam came into light in earlier years. So in current competitive environment, there is need to induct global standards. So that at least while the scope for scams still present, it can be at least reduce to minimum and CG can play a vital role in reducing corruption and decreased corruption enhance country development process because good corporate governance is to ensure commitment in managing the company in transparent ,manner.