Is Corporate governance and internal controls getting you all tangled?
Indians have a behavioral trend of scrutinizing and analyzing the ripple effects of sectoral developments in the Indian economy and politicians’ activities a lot.
However, we as corporates or even professionals, fail to analyze our own Internal Controls and weaknesses in the organizations system and processes thus, failing to foster a culture of good governance. These relate not only to compliance within the legal framework but also moral and ethical values, which extend beyond the letter of law and spirit.
Why only listed, regulated and visible corporates need to comply with applicable laws and regulations and not we as citizens of the country and social bodies, which I feel is a prime and collective duty of all to make the nation a better place to live and work both and be comparable to international standards, of which we not only aim about but boost also a lot.
The basic tenets of Corporate Governance require Promoters interest to be protected by the Board. That’s why across the globe, the tenets of Corporate Governance requires strong influence of outsiders, particularly the legislations, propping the need for disclosures. That’s how business will develop standards and add strong values.
However, this can happen only if Companies vigilantly monitor their internal controls, weaknesses and strengths rather than just making it a plethora of Corporate Governance initiatives to be kept in a “nice treasured box”.