s acts such as The Companies Act , 1956 and the Income Tax Act have been formulated by our government for effective governance.A new technique which has emerged as a result of growing business empires is based upon a very important paradox in the struggle between integration and devolution. Larger units are expected to be more economic and more homogeneous. Much of the reality of larger units is that they become more bureaucratic and internecine. The United Nations is an excellent example of this phenomenon; the World Bank has degraded in a similar fashion. To an increasing degree the worlds largest companies have restructured themselves to achieve internal devolution. The bottom line of organisations being : We are not a global business. We are a collection of local businesses with intense global coordination. As Jack Welch, CEO of GE very aptly quotes: What we are trying relentlessly to do is to get that small company soul - and small company speed inside a big company body.Issues of corporate governance have been addressed largely from a standpoint of improving controls and board processes rather than from a conviction that continuous improvement in governance can be a powerful competitive weapon.There lie a number of opportunities for better corporate governance which may include:A convergence of governance criteria with the public sector to reflect a more integrated modern world;The change to reach beyond the shareholder/board of directors relationship to include customers, employees, suppliers and other who deliver results for the company;The chance to use good governance to build competitive advantage in the long-term;The chance to widen stewardship to build a platform for a long-term sustainable growth of profits.The responsibilities of executive and non-executive directors for reviewing and reporting on performance to shareholders and other financially interested parties; and the frequency, clarity and form in which informa...
