Corporate governance is increasingly being viewed as a means to maximising long-term shareholder value in a fair and ethical manner. The view has already transcended narrow definitions and covers a wide range of measures, like transparency and disclosures, integrity of accounts etc. The concept is, therefore, moving beyond mere conforming to regulatory standards.
Business houses across the world in recent years have come under the scanner for poor governance standards. Such scrutiny has cut across geographic and sectoral divides, and is clearly justified in the context of companies such as Enron, Citigroup, JP Morgan Chase, WorldCom and others that were perceived to be efficient, yet faced the ire of investors and authorities as they failed to maintain transparency, ethics and accountability. Initiation of tough measures by the US Senate like the Sarbanes-Oxley Act, enacted in 2002, seek to bring about highly stringent norms of disclosure, accountability and transparency.
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