Leaders to look at governance beyond compliance
Companies need to understand that competition is bound to happen in any business environment; it is inevitable. Therefore, companies need to look beyond boundaries. It is not enough to keep track of what the competitor is doing. Companies need to focus not only on the competitor intelligence but also on competitive intelligence. Changes in technology can change the business landscape, market dynamics and consumer wants. But companies need to be ready with a pipeline of products and services to serve the markets today and tomorrow. Competition is fine, but companies will have to be more aware of market dynamics. Corporate governance too will play a very crucial role in this new journey. There are only a few companies in India who follow corporate governance really out of passion; many companies in India follow corporate governance only in letter and not in spirit. It is imperative the organizations not only have policies but also ensure their effective implementation. The challenge here lies in the enforcement of corporate governance policies. As Indian companies have set global footprints now, the need to be conscious about the board composition has risen all the more. Global benchmark standards should now be followed in India as well in terms of board composition, their pay structure, et al, going forward. Adequate attention will also be laid on the effectiveness of the board committees viz. Audit Committee, Remuneration Committee, Nomination Committee, et al. There will be robust evaluation of the performance of the board and which will not only be held to fulfill statutory compliance.