Editorial

The worldwide discussions on corporate governance have some basic takeaways which would govern the thrust of corporate governance in the coming years. The centralisation of ownership is the first and the foremost issue. Should corporate organisations have centralised or decentralised ownership? In so far as the family-owned corporations are concerned, decentralised ownership is preferred in view of the check on monopoly power. However, in the case of the state-owned enterprises, various models of ownership are in currency. The centralised model is in vogue in Russia and China. In India and other South Asian Association for Regional Cooperation countries, some other variants of the centralised model have been adopted. Each enterprise has to clearly enunciate its ownership policy to ensure how its ownership rights are exercised and by what institutions. The professionalisation of corporate personnel has been suggested as a panacea to root out corporate ills. There is no denying the fact that there is a need to reorient the corporate personnel frequently to adjust with the socio-economic and politico requirements. The members of a board must sensitise themselves well with the financial benchmarks, legal compliances and technical aspects of the company. Proficiency in strategic management leading to the formulation of vision, mission, objectives and values is an all-time necessity. An understanding of the complex regulatory regime is considered to be a high priority to fulfil the requirements of corporate governance. There have been frequent instances of corruption, marring the state of corporate governance. This could be taken care of by establishing and strengthening mechanisms to fight corruption and ensured integrity. It is witnessed that some countries have enacted the laws on whistleblowing. It should be ensured that such laws are implemented effectively, and the cases are disposed of well in time. The weak internal mechanisms have caused a great deal of concern. The Related Party Transactions continue to remain a grey area. These relate to inadequate internal audit systems, poor budgetary controls, unsuitable pricing system and weak corporate communication.

This issue presents papers based on empirical and conceptual research-related corporate governance. The papers deal with the role of the Boards in creating a cultural of innovation and performance, sustainability of National Railways, impact of gender diversity and audit characteristics on firm performance, resource productivity and corporate social responsibility, banking governance and leading sustainable corporate social responsibility efforts—a case study of Sneha Opportunity School by NLC India Limited.

These research-based articles clearly point out that we have to delve deeper to find out as to what ails corporate governance in different settings and what have been the factors aside corporate governance that have impacted the performance of enterprises.