Good Practice

Culture and Corporate Governance Principles in India: Reconcilable Clashes?

October 9, 2011

Private Sector Opinion 23: The structures, institutions, and legal framework of corporate governance are developed and administered by individuals whose behaviors are shaped by cultural and personal concepts of hope, ambition, greed, fear, uncertainty, and hubris, as well as by the social ethos. A problem arises when these influences do not conform with the regulatory prescriptions of corporate governance. This Private Sector Opinion explores the dynamics of culture and corporate governance in India by calling attention to three areas where the clashes are strongest: related-party transactions, the promoter's or large shareholder's actions, and the board's nominations, deliberations, and effectiveness. Foreword by Naheeda Rashid and Paul Lee of Hermes Equity Ownership Services Ltd.



Related links: 
Related Party Transactions and Effective Governance - How it Works in Practice in India, by Pratip Car. The background document for the Asia Roundtable on Corporate Governance - Fighting Abusive Related Party Transactions in Asia.

Key Corporate Governance Considerations for India's Economic Development. Keynote Address by Forum's Head Phil Armstrong at the 10th National Award for Excellence in Corporate Governance, Institute of Company Secretaries of India.