BY Tricitynews Reporter
Chandigarh
13th September:- Today, Corporate Governance is an
inevitable part of discussion in corporate boardrooms, academic roundtables,
and for policy makers worldwide. With the passing of the ‘Bankruptcy and
Insolvency Code’ this year, there is a heightened interest in corporate
governance and its impact on India Inc. To understand the emerging trends
and key governance challenges faced by organizations, ACCA (the Association of
Chartered Certified Accountants) has unveiled a study on ‘India Inc.’s readiness on Corporate
Governance’ at the first edition of the ‘ACCA Leaders Forum’ at
Vishakhapatnam recently. The forum was organized by ACCA in association with
CFO India.
The survey examined the corporate
governance (CG) requirements in terms of clarity and completeness of content,
degree of enforceability and prevalence. With responses from Chief Financial
Officer (CFOs) across various sectors including healthcare, research, business
services providers, infrastructure providers etc., it threw up some interesting
insights:
Derek
Sommerville, CFO, ACCA said that good governance will
help companies develop a structure of oversight and gain corporate leadership
to navigate periods of uncertainty. The research undertaken by ACCA highlights
that the lack of awareness of the activity and the behavior lower down is
really the root of many problems. Good governance is more than just addressing
the malfeasance at the top level but it is about ensuring transparency
throughout the organization.
He further added that the
effectiveness of the board underpins good governance. There needs to be
diversity and balanced skill sets, and obviously strong ethics and values, and
independence in decision making. Remuneration must be properly controlled, and
it must be given adequate visibility to all stakeholders. Risks and mitigation
controls must be properly addressed and there should be transparent management
of stakeholder relationships. Transparency in leadership is the key.
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