A senior official on Saturday said the government is working with SEBI to ensure there is zero tolerance towards unethical behaviour and non-compliance.
Stating that high corporate governance standards are vital for the country to reach the global position it aspires to be, a senior official on Saturday said the government is working with SEBI to ensure there is zero tolerance towards unethical behaviour and non-compliance.
"Adoption of the highest standards of corporate governance is imperative for us to reach the global position that we aspire for," corporate affairs secretary Injeti Srinivas told a CII summit on the subject here.
He said it is vital today for companies to ensure they follow sustainable and socially responsible behaviour and internalise the best governance principles rather than achieving them superficially.
Acknowledging that corporate governance cannot happen in isolation and there is no one-size-fits-all approach, he enumerated that companies do not have an option but to follow high governance standards lest they face dire consequences.
Uday Kotak, chairman of the SEBI committee on corporate governance, said corporate governance means fairness to shareholders, board commitment to long-term strategy and vision rather than short-term quarterly pressures.
It also means sharpening of roles between stakeholders, role of fiduciary agencies, ease of doing business, stewardship code for institutional investors and better governance at PSUs, he said.
He called for enforcing a trusteeship model of governance by the promoter, board or shareholders to ensure that each stakeholder gets the fair share.
Stressing on the role of fiduciary agencies, Kotak said independent directors, auditors, and rating agencies should protect the interest of stakeholders.
CII's corporate governance council chairman Keki Mistry said there is recognition today that firms committed to good governance have a distinct competitive advantage and enhanced reputation and investor trust.
