Governance In Corporate Governance
A Research Proposal on Inter-relationship between Corporate Governance and Operational Efficiency:
A Study on Commercial Banks in India
Submitted to Utkal University by
Basuli Dasgupta
(June 2012 batch)
Under Guidance of
Guide: Dr. Sabat Kumar Digal
Co-guide: Prof. Samson Moharana
P.G. Department of Commerce
Utkal University
Vanivihar, Bhubaneswar
Odisha, India
1. INTRODUCTION
1.1 Background of the study
During early 2000 there has been failure of big corporate like WorldCom and Enron in USA. Due to these different corporate scandals and bankruptcies, general public trust was broken. People were losing their confidence towards audit reports which are supposed to be neutral, true and fair report so that outside party of the organization
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One is ‘Governance’ and another is ‘Corporate Governance’. There is no well accepted definition of what Governance mean. As a result different people have came-up with different definitions. To ‘Govern’ means ‘to control actions or behavior of.’ Normally governance is provided by internal audit and it ensures that policies and procedures for day to day activities of the organization are implemented and …show more content…
World Bank defines ‘Corporate governance as a blend of law, regulations and appropriate voluntary private sector practices which enables the corporation to attract financial and human capital, perform efficiently and thereby perpetuate it by generating long term economic value for its shareholders while respecting the interest of stakeholders and society as a whole.’ It is the convergence of economics and relationships that determine a company’s direction and performance. Its purpose is to optimize resources to promote accountability and efficiency within the corporate structure. In most of the companies, corporate governance is set by their board of directors which establish and promote policies for the management and employees of the corporation’s outcomes. The aim is to align as nearly as possible the interests of individuals, corporations and society. A report on Corporate Governance must be included along with the company’s annual report.
As quoted by ‘The Hindu, July 9, 1997, Corporate governance is not just a corporate management, it is something much broader to include fair, efficient and transparent administration to meet certain well defined objectives. It is a system of structuring, operating and controlling a company with a view to achieve long term strategic goals to satisfy shareholders,
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