Corporate governance is about ethical conduct in business. It is nothing but the moral/ethical/value framework under which corporates take decisions. In an effort to produce the best possible financial or business results, there could be attempts to do things which can be touted illegal. There are grey areas, too.
In fact, the very definition of corporate governance stems from its organic link with the entire gamut of activities having a direct or indirect influence on the financial health of corporate entities. It is financial integrity that assumes tremendous importance. This would mean that directors and all concerned should be open and straight about issues where there is conflicts of interest.
The corporate system and diverse ownership did contribute in a substantial measure to prosperity, employment potential and living standards. Despite this, the failures too caused concerns among the regulators. Existing laws, rules and controls did not quite address the issues related to the failures of inefficient or fraudulent managements.
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