And for a Friday after the Bombay Chamber Conclave on Corporate Governance, some thoughts….. some musings…..
Need for the highest standards of Corporate Governance is now paramount and Centre stage. With Satyam debacle, the Company’s act 1956 was amended to bring in sweeping changes – Role of Independent Directors, constitution of the Board, Related party transactions etc. etc., a whole host of legislative amendments. But the ILFS debacle followed by the Punjab and Maharashtra Cooperative Bank (PMC) and now Rana Kapoor’s alleged misdeeds in YES bank, all point to one major issue – overbearing greed, avaricious appetite for ill gotten wealth and the fallen standards of Personal Ethics – the environment which leads to sinister characters who feed and live off Corruption.
Compliance means following all laws and statutory Rules. That is given and non-negotiable. In Companies, the KMPs and Board Members are duty bound to follow – no options. Governance is much higher. It involves not only the letter but the Spirit of the Law. That is largely dependent on the Leadership. Even greater and the most challenging is the Personal Ethics and Moral compass of the Leader/Owner/CMD/CEO. If he or she chooses Corruption and Nepotism as a competitive tool, the Organisation will not be sustainable. They will be caught someday. Social media, technology and Global institutions will ensure that Honest Professionals who care for their Families and individual reputation must immediately resign. Choose the ability to sleep well, over the perks of such a job and a corrupt boss.
India is changing. Notwithstanding the current hiccups, India is at a cusp of huge growth and opportunities. Let us all be truthful and listen to our honest inner voice. Let us help build our country, the Gandhian way, the Ethical way, the SEEGOS way.