CORPORATE GOVERNANCE - Sir Adrian Cadbury who is known as fat | UPSC Ethics Examples & Quotes

CORPORATE GOVERNANCE

- Sir Adrian Cadbury who is known as father of corporate governance defines it as 'the way company is controlled & directed'.

- Implication of this meaning is that the manner of controlling & directing should be based on set of standards i.e. companies should be run on basis of set of standards so that there are transparency, accountability & protection of all share holders & stake holders including citizen.

Need for Corporate Governance:

1. Corporate failures (PNB scam, Satyam, Sharada scams)

2. Corporate coup (Tata company)

3. Corporate corruption (Nirav Modi, Vijay Mallya)

4. Promoting competition, quality, cost effectiveness, entrepreneurship, innovation, creativity.

5. Protecting interest of citizen, society.

Quote:

“Corporate governance should go the realm of law, it should emanate from management culture.” – Narayan Murthy

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