Good business practice is no longer just about ensuring the absence of any red ink in the annual report. It isn’t just about keeping the ultimate owners of the enterprise, the shareholders, happy.
Today, if an organization has to survive and thrive in a commercial environment that is becoming increasingly global in its outlook, it has got to factor in the interests and concerns of every stakeholder in the business. And that includes not just the shareholder, but also the domestic and global customer, the vendor, the creditor, the lawmaker, the community in which the enterprise operates, and environmental groups.
It is in this context that corporate governance has assumed greater significance, particularly with companies that are seeking to establish a global footprint.
In this series that we have compiled in association with Nirvana Advisory Group Pvt. Ltd, a New Delhi-based consulting organization, we have tried to address some of the more relevant and contemporary issues on the subject. Clause 49 of the listing agreement, which Sebi introduced as a benchmark of corporate governance standards, forms the core of the series. Two key issues — whistleblower protection and independent directors — which have been addressed in the clause, have been treated as separate subjects in their own right.
You will also find a section on corporate social responsibility, which falls outside the ambit of Sebi’s landmark guidelines, but merits discussion nevertheless, given that it embraces practically all the other stakeholders that Clause 49 doesn’t. Do go through the multimedia presentation to get a fair idea of what this series is really all about.