STUDY ON STATE CORPORATE GOVERNANCE

Abstract

Corporate Governance may be defined as “A set of systems, processes and principles which ensure that a company is governed in the best interest of all stakeholders.” It ensures Commitment to values and ethical conduct of business; Transparency in business transactions; Statutory and legal compliance; adequate disclosures and Effective decision-making to achieve corporate objectives. In other words, Corporate Governance is about promoting corporate fairness, transparency and accountability. Good Corporate Governance is simply Good Business Good governance is the expectations of every stakeholder, specially, shareholder. But the implementation of ‘Corporate Governance’ is not that much simple as its meaning. Corporate Governance is recently emerged concept and has taken the attention of each and every country, investors and corporate professionals. It has, its strong base from the internal management of company, to the shareholders’ value, as well as, corporate social responsibility. Reasons for selecting corporate level units, which are functioning in India, is to find out whether corporate governance is actually being practiced by the corporate level executives, or not. Good Corporate Governance is a key to any well managed organization and has been described as ‘the system by which organisations are directed and controlled’. Corporate Governance is not simply about having the right documents, or financial controls, or solely about the management of risk and performance. It is also about the organisation’s culture and values, Board leadership, staff behaviours, attitudes and accountability and about having clearly defined roles and responsibilities within and outside the organisation.