In last 20 years after initiation of economic reforms, India particularly corporate India has moved far ahead to start a new flight towards untouched horizons. We are surviving in a time of dynamic transformations through technological advancement, regulatory rationalisation, progressive professionalism, democratic transformation and sustainable development in our society. In recent developments, transformation of leadership of democratic institutions toward participatory solidarity of all societal stakeholders is evident. There are evidences of many streams of thought and developments in society but there are many new developments, whose time is just knocking the door. Our corporate environment is not left out but is part and parcel of this silent revolution. These transformations in our society are bound to affect all vistas of our life and corporate sector as well. We are very fortunate to be a part of this transformation and we have tremendous opportunity to be a carrier of this transformation. We should understand this revolutionary time and keep pace.
Technological changes are also taking place at a rapid pace. Global village is not an economic illusion anymore but this is a reality of our time. We have investors and other stakeholders across the globe due to economic reforms with an active help of technological advancement. Speed of information generation, communication, processing, analysis added up more fuel into decision making speed. Information is being called new weapon of war as well as of trade. Information is all about decision and basis of well informed professional decision making. Even, regulators are rapidly increasing uses of information technology. With the introduction of tablet computers, iPhone along with 24X7 connectivity information warfront is at our own palm and this is also a great supporting tool of decision making process. Now, it is not only a question of uses of sophisticated information technology hardware but also software advancements. There are new quick information sharing and processing tools. Regulators are demanding reports on computer readable formats for quick and real – time processing.
These days, we are looking forward to evidence change in board rooms and in that way whole decision making process. This decision making process shall not be just a decision making but professionally backed informed decision making through participatory democratic means. This is where, we as professional come; we should be part of this professionally informed decision making. Our role shall not only be a post facto ticking exercise but also futuristic innovative approach for informed decision making.
In last decade, economic meltdown put all stakeholders to caution towards any possible unethical behaviour and opaque reporting. Globally, many big corporate became insolvent and others were reconstructed. Indian case of Satyam Scandal is one of the turning points of corporate governance in India. The Corporate India was strictly criticized on many forums. At the time of Satyam Episode, D. Parthsarathy remarked on Social structure of Board compositions:
“There is also a moralistic middle class which blames it on greed pure and simple. The fact that the Indian private sector is largely dominated by family owned and controlled businesses of sundry sizes, that caste, community, gender, and social networks play a significant role in who gets nominated to top positions within the companies, and how businesses are run, that these have significant implications for corporate governance as well as corporate loot – these are issues that are too dangerous and embarrassing at the same time, and so are conveniently ignored.
- 1. Not just top executive positions but directorships – including so-called independent ones, are also based on kinship, caste, and community.” [i]
In globalised world, there is global effect of corporate failure like Enron, Lehman Brothers. Stakeholders are not restricted to single geographic location or legal jurisdiction. Educated stakeholders are asking more professional corporate governance policy from Corporate India as well as from Indian regulators. There are many law exist in books, but question is of compliance and enforcement of law. Arun Maira asks:
“When a citizen does wrong, you know whose ass to kick. When a corporation causes harm, who exactly should take the rap? [ii]
To read full Article Please Click here and search for “SOCIAL ENVIRONMENT FOR INNOVATIVE PROFESSIONISM DRIVEN BY TECHNOLOGY AND REGULATORY DEVELOPMENT”. Original Article was published in Souvenir of 39th National Convention of Institute of Company Secretaries of India held in 2011.