Get Rid Of Corporate Governance In The Indian Context For Good! Photo Credit: AAP Image 1 of / 18 Caption Close Reforming companies 1 / 18 Back to Gallery New Delhi: Corporate governance reform has been in the works for more than two decades but many people and stakeholders are in favour of her response India’s most powerful corporation. Meetings about corporate governance reform in India and the US had almost nothing in common. Corporate governance is an important pillar of economic growth, prosperity and connectivity, but the country has few big public institutions and few powerful decision-makers, according to Harvard Business School economist John Shuster. A recent report by Shuster at the Washington and Lee thinktank found that three of India’s most populous Indian provinces have about a million CEOs, with large numbers involved in a huge portion of business and in the pharmaceutical, accounting, power manufacturing and IT sectors. These figures are usually taken to indicate that firms in these states have to promote and increase governance reform to ensure participation, while in the US they are taken as evidence pointing that governance reform is far too slow and unaccountable.
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The report, by Shuster and Lee is the first to call attention to the need for private firms to coordinate across sectors and find ways in which governance reform can be best organized so that their growth can be sustained by strong growth opportunities. When its authors examined across 19 states in 2008, the study found that Indian companies with 15 or more boards that participate in governance reform accounted for 50 per cent of corporate debt, according to a report in Bloomberg Businessweek. Even by 2010 India had the highest rate of board Governance Development among the developed industrialised countries. The report adds: “Without ensuring and expanding governance reform, there is little point in any major reform effort as it ignores and marginalises Indian public organisations that provide the most financial, operating and revenue potential in their respective provinces.” Instead, the researchers say, reforms are needed across different sectors, by focusing on the building up of broad governance tools and by enabling state-organised governments to grow by adopting more effective and accountable bureaucracies, such as corporately owned entities.
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A key point was that states need greater autonomy and political control over governance planning. In Western countries where the majority of corporations dominate political power, the best way to reduce governance reform is through more effective governance structures and of particular intensity and accountability frameworks. India is no exception. Only five states – Uttar Pradesh, Gujarat, Ettore Dattatreya,
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