Page 47 - Banking Finance April 2023

ARTICLE

impact the reputation of the corporate sector. Moreover technology to monitor and analyze the performance of
the increasing competition in the global market can lead to companies, as well as using data analytics to identify
companies prioritizing short-term gains over long-term potential risks and opportunities.
sustainability and ethical practices.
There is also a growing focus on diversity and inclusion in
Emerging Trends in Corporate Gover- corporate governance in India. This includes a focus on
increasing the representation of women and other under
nance in India
represented groups on the boards of companies and in
In recent years, there has been a growing focus on
senior management positions. Companies are also beginning
sustainability and environmental, social, and governance
to focus on the inclusion of diverse perspectives in decision-
(ESG) issues in the corporate governance in India and
making and to ensure that their policies and practices
several emerging trends have begun to shape the
promote diversity and inclusion.
way companies are governed in the country. One of the
key emerging trends in corporate governance in India is
Non-financial performance metrics are also increasingly
the increasing focus on sustainability and social
being used to evaluate corporate performance. This includes
responsibility.
metrics such as environmental and social impact, customer
satisfaction, and employee engagement. This shift in focus
More and more companies in India are recognizing the
is an indication that companies are being held accountable
importance of sustainable business practices and are taking
for their overall impact on society, not just their financial
steps to reduce their environmental footprint and minimize
performance.
their social impact. This trend is being driven by a growing
awareness of the importance of protecting the environment
Conclusion
and addressing social issues, as well as by the increasing
pressure from investors and consumers for companies to be In conclusion, corporate governance in India is a dynamic
more socially responsible. and rapidly evolving field, shaped by a complex interplay of
laws, regulations, and best practices. The governing
Another emerging trend in corporate governance in India principles of corporate governance in India are fairness,
is the increasing use of technology and data analytics. transparency and accountability.
Companies are beginning to use technology and data
analytics to improve the efficiency and effectiveness of their The current state of corporate governance in India is marked
corporate governance processes. This includes using by strengths such as a well-developed legal framework, a
strong tradition of shareholder democracy, and a growing
number of independent directors on the boards of
companies, but also by weaknesses such as a lack of
consistency in the application of corporate governance
principles, lack of transparency and accountability and a lack
of diversity.

As the country continue to grow and globalize, the
opportunities for Indian companies to adopt international
standards of corporate governance and to focus on
sustainability and social responsibility will be key. It is
important for companies to stay informed of the latest
trends and developments in corporate governance in India,
in order to stay competitive and protect the interests of all
stakeholders.

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