Sreedharan gets lifetime corporate service awardDecember 20th, 2008 - 8:20 pm ICT by ANI
New Delhi, Dec 20 (ANI): Vice President Hamid Ansari today presented ICSI Life Time Achievement Award for Excellence and Corporate Governance to Dr. E. Sreedharan, CMD of Delhi Metro Rail Corporation Ltd (DMRC).
The Awards for Excellent Company Secretary were received by to Usha T.N. of Mindtree Ltd and Narayan Shankar of Mahindra & Mahindra Ltd.
Speaking on the occasion, Ansari said the globalisation extends to the darker niches of our economy, polity and society.
“Two days back the nation heard of a textbook case study of corporate governance failure by the promoters and the management of a top IT company that took a decision with huge financial implications that directly benefits the promoter family with no consultation with other share holders,” he added
“While the decision has been reversed, it highlights the gap between the profession and practice of corporate governance and corporate social responsibility. Matters are made worse by the fact that the company in question was, quite recently, given a Global Award for Excellence in Corporate Governance!” he said.
He further added that every economic framework and political system brings with it its own problems and peculiar characteristics that mark the corporate governance debate.
“The debate on corporate governance in the United States and Europe is primarily focused on the disconnect between the management and the share holders. In India, and in the light of known facts, I would like to draw attention to three aspects of corporate governance,” he said.
Firstly, the central problem of corporate governance is the conflict between the dominant shareholders and minority shareholders. Some argue that this basic problem cuts across all business enterprises, whether in the private or the public sector.
Secondly, the range of corporate governance instrumentalities that guide the behaviour of business organisations is usually dependent on whether the organisation is listed on the stock markets, and if so, the location of listing. Thirdly, there appears to be a strong correlation, and possibly causation, between corporate governance failures and the grey economy. (ANI)
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