Corporate Governance: Ethics in Business

Corporate Governance is the system by which companies are Directed and Controlled to ensure accountability to all stakeholders.

Definition of Corporate Governance	- System by which business corporations are directed, controlled, and held accountable to all stakeholders
Core Principles	- **Transparency:** mandatory disclosure of financial metrics and material operations - **Board Independence:** independent directors checking promoter whims and protecting minority shareholder interests - **ESG Framework:** aligning corporate profits with Environmental, Social, and Governance responsibilities
Major Corporate Governance Issues	- Cronyism: interlocking directorates, related-party transactions, and insider trading - Short-termism: prioritizing quarterly share price gains over long-term sustainability and employee welfare
High-Yield Ethics Data & Exemplars	- Companies Act 2013 (Section 135 mandatory 2% CSR spending & Section 188 related-party disclosures) - Uday Kotak Committee (2017) & Cadbury Committee Report (1992) recommendations - UN Global Compact on Corporate Governance 10 Principles
Conclusion	- Success lies in moving from profit-only focus to **"Trust-Saturated and Impact-Verified Corporate Stewardship"**