‘Accountability is must for corporate governance’

Corporate governance is nothing but ensuring that a firm runs on sound lines through adoption of fair and ethical practices, besides assuring investors of good returns, said Krishna University Vice-Chancellor V Venkaiah on Tuesday.

Speaking at the inaugural session of a national seminar on ‘Good Corporate Governance in India and Challenges’ organised by commerce students of Sri Durga Malleswara Siddhartha Mahila Kalasla, in collaboration with the Andhra Chambers of Commerce and Industry Federation (ACCI), he said that good corporate governance could be achieved only when all the corporate heads follow ethical values to safeguard the interests of stakeholders, including investors, employees, dealers and consumers.

“Accountability is a must for good corporate governance which is lacking in majority of cases in the country. Some industrialists, instead of acting as custodians of shareholders’ investment, are leading a luxurious life indulging in lavish spending. This is ultimately leading to major corporate frauds, affecting the investors, particularly those who invested their hard earned money in shares anticipating good returns,” he said.

Strategy consultant and Administrative Staff College of India former dean B Kinnera Murthy said, “Corporate governance is all about discipline and it is related to maintenance of a fine balance between economic and social goals and between individual and company goals.

Many financial scams occurred in India due to lack of effective corporate governance. Concentrated ownership of companies, pyramiding and tunneling of funds among group companies had hit the Indian corporate sector.

Industrial domination and monopoly of family firms should go for effective functioning of the corporate governance in India.”ACCI executive director Potluri Bhaskara Rao, Siddhartha Academy of general and technical education president Nalluri Venkateswarlu, principal T Vijaya Lakshmi, seminar coordinator and commerce department head T Rama Devi and other faculty members were present.