Corporate Management : Corporate Governance Essay

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Chapter-1 Introduction to Corporate Governance 1.1 Introduction Corporate Governance is a buzz word in the business world. It is envisioned to enhance the accountability of a concern and to evade huge disasters before they occur. The concept of corporate governance dived to global attention after the sudden crashes of Enron, World Com, Xerox, Lehman Brothers, Parmalat, Satyam etc. The failure of these colossal business houses horrified the corporate world with their unethical and unlawful operations which affected the employment, finances of national and local government worldwide and international economy. The history of these scandals have forced all the corporates to have substantial and clear record of wealth creation and transparency over a period of time. Integration and globalization of financial markets and a gush of corporate scams have led to the fast developments within the field. With the continuous growth in the foreign investments in India, the international investors would assert that the corporations in which they have interest should follow a “Code of Corporate Governance”. In such a scenario, Indian corporates cannot afford to disregard the best corporate governance practices since India is a developing country. Corporate Governance has, of course been a highly debated field of enquiry with in the finance discipline for decades. Several studies emanating from academic and non-academic circles over the years demonstrate that better corporate
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