Culture and Corporate Governance Principles in India: Reconcilable Clashes?
Private Sector Opinion 23: The structures, institutions, and legal framework of corporate governance are developed and administered by individuals whose behaviors are shaped by cultural and personal concepts of hope, ambition, greed, fear, uncertainty, and hubris, as well as by the social ethos. A problem arises when these influences do not conform with the regulatory prescriptions of corporate governance. This Private Sector Opinion explores the dynamics of culture and corporate governance in India by calling attention to three areas where the clashes are strongest: related-party transactions, the promoter's or large shareholder's actions, and the board's nominations, deliberations, and effectiveness. Foreword by Naheeda Rashid and Paul Lee of Hermes Equity Ownership Services Ltd.