The importance of businesses having long-lasting impact on people, planet and ability to sustain levels of holistic development is well recognized. This realization has called for businesses to be thoroughly aware and conscious of their responsibilities and functions. When businesses are supported by appropriate corporate governance policy that encourages systematic movement towards responsible thinking, decision-making and sustainability, we see a positive trajectory of overall growth and development. Recent financial crisis of 2008 has put the principles of corporate governance in a new light, generating new interest in the domain worldwide.
Corporate Governance comprises of a set of policies and principles which ensure that a company is governed in the best interest of all stakeholders, promoting corporate fairness, transparency and accountability. The SEBI Committee on Corporate Governance defines it as the \"acceptance by management of the inalienable rights of shareholders as the true owners of the corporation and of their own role as trustees on behalf of the shareholders. It is about commitment to values, about ethical business conduct and about making a distinction between personal & corporate funds in the management of a company.\"
Good corporate governance strives towards protection of shareholders’ rights and which in today’s world is fundamental for maximizing long-term value of the company and its stakeholders. Thus, a responsible firm always aims to adopt such a governance regime which provides direction and helps in constantly benchmarking the business performances against industry standards.A corporate board holds the responsibility to integrate community development, responsible governance, stakeholder inclusiveness and environmental responsibility into business practices and operations. Further, it is the duty of the board to put an effective machinery at place to resolve conflicting interest and sub serve the concerns of stakeholders.