Corporate governance, an investment to ensure sustainability: Srinivas

Indian organizations must view corporate governance as an investment to ensure long-term sustainability, Chairman of the Authority of International Financial Services Centers Injeti Srinivas said on Friday during a keynote address at ET -Amrop India’s Best Boards Awards.

“When we talk about corporate governance, unfortunately, we often think of it as a compliance burden or a compliance cost or both. Sometimes we may also think that this is unnecessary external taxation from the regulator which is detrimental to our flexibility, efficiency or ability to innovate, ”said Srinivas, an Indian administrative service officer in India. 1983 who previously served as secretary in the Union’s Ministry of Corporate Affairs.

“What we often forget to recognize is that you need gold standards, you need standardization and uniformity. So there is no alternative to a broad framework, and we must all work within this framework to ensure a high level of corporate governance, ”Srinivas said at a virtual event to congratulate the best. councils of the country.

Winners in five categories included Titan Company in large caps, Indian Hotels Company in mid caps, Minda Industries in small caps and Cholamandalam Investment and Finance Company in financial services. The “best of the best” award, selected from the juries that won in their respective categories, went to Titan Company.

ET has partnered with board consultancy specialist Amrop India and proxy consultancy firm IiAS to conduct a comprehensive study of the boards of directors of India’s largest companies. The study examined financial performance, governance practices, strategic inputs and several other parameters. The selection of the best boards was made in consultation with a distinguished jury consisting of former Sebi UK chief Sinha, former Axis Bank CEO Shikha Sharma, global governance expert Chris Pierce, legal expert Jyoti Sagar and renowned independent directors Ashok Barat and Milind Sarwate.

In his welcoming remarks, Sivakumar Sundaram, Chairman of the Executive Committee of Bennett Coleman & Company Ltd (BCCL), said: “The best-run boards of directors define what needs to be legislated and not the legislation that determines the boards of directors. best governed administration.

“The agenda for organizational performance and culture is set by the board,” said Sundaram. “Consequently, the board of directors increasingly aims to build the organizational mandate around the culture of ownership, performance, compliance, ESG (environmental, social and governance), governance, which is the foundation for long-term growth. ”

“A well-managed board ensures that the organization is productive, innovative and constantly growing without any distractions, disruption caused by conflicts and conflicts that don’t even arise in well-managed boards,” said Sundaram.

BCCL is the editor of The Economic Times.

Sharing a global perspective on board best practice, Fredy Hausammann, Member of Amrop Global Executive Board & Board Practice, said: “Reputation is a key factor for the success of any board … a question of ethics, value and conduct. Independent advice is of great importance, Hausammann said. “If you pick the right people, the big paychecks you pay them won’t change their beliefs or their ethical standards,” he said.

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