Corporate Governance
Corporate Governance is the prime focus of Governments,
regulators, boards, financial markets and investors due to its immense
importance to the economic growth of a corporation and society as a whole. Good
corporate governance enables companies to create an environment of trust,
transparency and accountability, which promotes long-term capital and supports
economic growth and financial stability.
Effective corporate governance guarantees openness,
accountability, and equity in an organisation’s interactions with its
shareholders, employees, and external stakeholders. Corporate governance help
mitigate risks, prevent corporate misconduct, and promote fair and equitable
decision-making, ultimately contributing to investor confidence and market
stability.
Corporate Governance is one of the important criteria for
investors, including institutional investors to decide on which company to
invest in. Companies with good corporate governance has a much higher level of
confidence amongst the stakeholders associated with them.
In India, corporate governance has evolved as a vital topic
of evaluation for stakeholders, regulators and corporations. For the Indian
capital market, corporate governance is crucial for ensuring transparency,
accountability, and fairness, ultimately fostering trust and confidence among
investors. This framework helps companies operate ethically, aligns the
interests of stakeholders, and promotes long-term financial viability, which
are vital for a healthy capital market.
The rapid adoption of AI, big data, and digital tools is
reshaping corporate governance in India. Boardrooms are now responsible not
only for traditional financial oversight but also for managing emerging areas
like data governance, cybersecurity, and digital ethics. Increase in risk of
cyber threats, make it critical for boards to implement robust security
measures and risk management strategies.
Another area that has emerged to play a crucial role in
shaping the nation’s business landscape and fostering long-term prosperity is
sustainable development. This has resulted in recognising the importance of
Environmental, Social, and Governance (ESG) factors in driving sustainability
and fostering responsible corporate behaviour.
Indian companies are increasingly recognising the importance
of ESG factors in driving long-term value creation and stakeholder trust. There
is now a greater emphasis on integrating ESG considerations into corporate
strategies, decision-making processes, and reporting frameworks to align with
global best practices and investor expectations.
ICC has taken a lead in advocating industry’s regulatory
concern. In its endeavour to advocate for good corporate governance, ICC has
been organising initiative to disseminate information on effective governing
practices. It also organises the India Corporate Governance and
Sustainability Vision Summit and Corporate Governance and
Sustainability Vision Awards. These are flagship events of the Chamber and
are very prestigious as participants include eminent listed organisations of
India.
