Corporate Governance and Corporate Social Responsibility Post Companies Bill 2012: An Analysis

Abstract

The corporate governance system of any country has two different aspects. The positive aspect of it aims at enhancing corporate performance and accountability with the principal objective of attracting financial and human resources while the negative aspect deals with preventing corporate failure. Corporate governance in the contemporary Indian scenario assumes tremendous significance since a corporation is a conglomeration of various stakeholders namely investors, vendors, employees, government and the society in which it operates. Thus it becomes imperative that the management operates keeping in mind certain principles and rules such that their actions are not detrimental to the interests of the other stakeholders whose support is quintessential for growth and development of a corporation. The present paper aims at evaluating the existing corporate governance principles and comparing them with those of the proposed Companies Bill which is pending approval in the Rajya Sabha. The paper discusses various aspects of Corporate Governance and Corporate Social Responsibility and critically analyses them in accordance with the Indian corporate structure.