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On the other hand corporate governance has became a topic of vide and deep discussions around the globe recently. Although it did not receive much attention until the down of the 1990s, but it has become very popular within a short period and has very significant relevance to strategic management.
The word "Corporate Governance" has become a buzzword these days because of two factors; the first is that after the collapse of the Soviet Union and the end of the cold war in 1990. It has become the conventional wisdom all over the world that market dynamics must prevail in economic matters. The concept of government controlling the commanding height of the economy has been given up. This, in turn, has made the market the most decisive factor in settling economic issues.
When investment takes place in emerging markets, the investors want to be sure that not only are the capital markets or enterprise with which they are investing, run competently but they also have good corporate governance. Corporate governance represents the value framework, the ethical framework and the moral frameworks under which business decision are taken.
According to the Kumar Mangalam Birla Committee, the fundamental objective of corporate governance is the enhancement of long-term shareholder value, while at the same time practicing the interests of other stakeholders.2
Corporate governance system very across countries and these differences directly affect both the process far developing strategies and the kinds of strategies that can be adapted.
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2 Cherunilam Francis, Business Policy and Strategic Management, Himalaya Publishing House, Mumbai, India, P-67.
* Contributed by: -
Dr. R. P. Verma,
Ex. H.O.D. & Dean, Commerce and Business Management Dept.,
Arabinda Bhandari,
Strategic Management Researcher,
Ranchi University, Ranchi.
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