Tuesday, 13 September 2016

Heightened Interest in Corporate Governance But Challenges Still Remain:Indian CFOs

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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