Corporate Governance

This might be the hottest topic in the corporate arena, Board members of Public companies and public enterprises are thinking, whether they are using the right practices to conduct their business. Stock Exchanges, Governments and shareholders are demanding, transparency, fairness in business transactions.

This trend has been developing in the world for past ten years. However an effort is been made to speed up the reform process after the Enron collapsed.

But today we have to think beyond the corporate board, we have to think of ways how good practices and governance can be established in every layer of the management. We have to think about training, and building a culture where by Directors and Managers can be hold Accountable.

Accountants can play a huge role in making this happen. Specially after the corporate accounting scandals around the world, the importance of good accounting practices has been mounting. Today Accountants have to be loyal to the company and not just for the shareholders and directors. Today we have to realise that business is a separate entity from its members.

I think IFC and Global Corporate Governance Forum with Commonwealth are doing a great job in promoting this concept and helping countries to formulate codes.

to be continued.................