This Concept Paper on National Corporate Governance Policy, 2012 prepared by ICSI is aimed at laying down an overarching policy framework for promoting good governance practices amongst corporates by instilling principles of good governance in the various statutes, regulations and policies of the Government as applicable to corporates.
Re-affirming that good corporate governance practices are sine qua non for sustainable business that aims at generating long term value to all its stakeholders and keeping in view the objective of encouraging the use of better practices through voluntary adoption, the Ministry issued a set of voluntary guidelines – the Corporate Governance Voluntary Guidelines, 2009, which not only served as benchmark for the corporate sector but also helped them in achieving the defined standards of corporate governance.
To achieve the objectives of this Policy, an institutional framework has been proposed to undertake, coordinate and oversee its implementation in cooperation with Central Ministries, sectoral regulators, enforcement agencies and other stakeholders.
Corporate governance mainly involves the establishment of structures and processes, with appropriate checks and balances that enable the Board, as collegian, to discharge their legal responsibilities in a manner which is beneficial to all stakeholders.
