Corporate governance is a critical pillar of modern business, shaping the interactions between governments, regulators, corporations, boards, markets, employees, and investors. Its all-encompassing nature makes it one of the most vital aspects of corporate functioning, influencing not just businesses but society at large.
Corporate Governance
ITA > Corporate Governance
Corporate Governance: Driving Transparency, Compliance, and Sustainable Growth
Across the world, innovative governance practices are emerging in response to:
The Confederation of Indian Industry (ITA), through its National Committee on Real Estate & Housing, actively collaborates with stakeholders and the Union and State Governments to introduce key reforms aimed at enhancing transparency, governance, and sectoral growth. Some of the critical initiatives where ITA has played an instrumental role include:
➤ The global financial crisis
➤ Privatization and capital market integration
➤ Rising investment levels and stakeholder awareness
➤ The need for resilience and sustainability in uncertain times
Governments and lawmakers are increasingly focused on legislating good governance, while also encouraging voluntary adoption of best practices. Regulators aim to deter non-compliance, while forward-thinking businesses design robust governance structures that emphasize risk management, transparency, and stakeholder engagement.
ITA’s Leadership in Corporate Governance
The Confederation of Indian Industry (ITA) has played a pioneering role in shaping corporate governance practices in India. Key milestones include:
➤ 1998: Released the Voluntary Code of Corporate Governance, making ITA the first industry association to take a proactive role in governance standards.
➤ 2009: Published the ITA Task Force Report, further refining governance recommendations.
➤ Clause 49: ITA’s Code of Corporate Governance served as the foundation for various governance frameworks, influencing the development of Clause 49 of SEBI’s Listing Agreement.
ITA also hosts the National Foundation for Corporate Governance (NFCG), a Public-Private Partnership initiative with the Ministry of Corporate Affairs and three professional bodies:
➤ Institute of Chartered Accountants of India (ICAI)
➤ Institute of Company Secretaries of India (ICSI)
➤ Institute of Cost Accountants of India (ICAI-CMA)
Policy Advocacy and Regulatory Engagement
ITA has actively represented industry interests in key regulatory developments, including:
➤ Companies Bill: Contributing to its evolution at every stage.
➤ SEBI Takeover Code: Engaging in policy refinements.
➤ Merger Review Process: Advocating for a balanced and growth-oriented framework.
ITA promotes voluntary adoption of best practices, reducing the need for excessive regulation. Through consistent policy advocacy, it aims to foster a harmonized regulatory environment that supports corporate growth while maintaining high governance standards.