Do we need another Anna for Corporate Governance?
A look at the present scenario of corporate India; indicates that people like Anna are already present but with a muted voice. Mr.Anil Singhvi – is one such activist who continuously strives to raise awareness among investors about the company events. For example, in 2012 he expressed concern about Bharti Airtel’s rationale regarding increasing CEO Sunil Mittal s compensation to Rs.70cr, up 76%. Similarly, he also raised a voice regarding Hindalco’s corporate governance practices such as having the same independent directors and auditors for more than a few decades. However, in both the cases the AGMs took place with little or no heed given to these points.
Here begins the lapse of the corporate governance practices with the investors not actively questioning the companies about their decisions and activities. Traditionally people like to play the blame game after an event (like a fraud) has occurred; begins the chain reaction- the company should be alert and adopt a whistleblower policy, etc. But do we look at ourselves and start taking a proactive step towards becoming the change factor. The answer is a blank NO!
Then how will corporate governance practices change? The change will not occur overnight, the change will not be one-sided (on the company front). It has to be multi-dimensional with each and every stakeholder becoming a part of it. The onus lies on the shoulders of an Investor, an employee, a supplier, a company director, etc. We have to leave behind the reactive approach and adopt a more proactive one towards corporate governance.
After a scam is revealed investors typically feel jittery about their investment; to placate the investors the ministry of company affairs and other legal organizations suggest a number of laws and policies. But eventually, these laws are implemented by rote compared to in totality. The vicious circle continues with frauds (2G scam, Satyam fraud, etc) coming to the forefront. Hence till the Anna within us is awakened, the future of corporate governance looks bleak!!
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