Workshop Report
The second panelist, Mr. P.K. Verma began his talk by analyzing six different definitions of corporate governance. He categorized the concepts of corporate governance into two. Firstly, it is a process by which companies are directed and controlled and secondly it is an economic phenomenon that arises due to separation of ownership and control. According to Mr. Verma, the governance principle is a commitment to manage all resources conscientiously and effectively, recognizing the fiduciary duty of corporate boards and managers to focus on the interests of all stakeholders. This duty is of primary importance and is superior to the interests of management. The company's mission must be clearly articulated, widely understood, and must recognize the interests of multiple stakeholders. Additionally, in order to compete it is imperative for companies to reinvest in infrastructure, manpower, research and development as well as technology. He concluded his session by posing two questions to the audience:
- What kind of systems and structures need to be developed for effective corporate governance?
- What about code of ethics?