Corporate Governance in India - Inputs on Root Causes
Below are the key issues as outlined by you in regards to Corporate Governance in India.
Kindly review and help identify Root Causes for these issues by responding to this post.
Corporate Governance in India - Key Issues
1. Many companies don’t follow the set accounting norms
2. Companies ignore systematic processes and take shortcuts to production
3. Business ethics are overlooked
4. The boards generally consist of family members and extended family
5. Some large company boards have retired IAS officers who won’t oppose wrong doing because of their retainer check
6. Most corporates don’t have an ethics and compliance department
7. Value and ethics training for employees is non-existent in most companies
8. Sales people are made to sell at any cost even if bribes have to be given
9. Operations people are made to process shipments/sale even if it involves bribery
10. Working of many corporates is not transparent
11. Corporates inflate costs while launching new products
12. Personal expenses of promoters are made business/company expenses
13. The annual reports are manipulated
14. Many corporates have female directors just for the name sake
15. Many times accountants and auditors are related parties
16. Auditors are bribed to help save on taxes
17. Companies are created abroad to evade taxes and to bring black money back as white
18. People open companies with insufficient/inaccurate details and then use them for fraudulent/corrupt transactions. more