BANGALORE: The Central Vigilance Commission has emphasised upon "value-based system" to promote good governance and check corruption in corporates.
"Companies based on transparent and efficient systems which provide fair treatment and quality output to all its stake holders are as important to democracy as political institutions. Companies founded on ethics and good governance are the foundation of sound market economies....
"Improved corporate governance, however, does not solely rest on control through increased regulations. After all, good behaviour cannot be legislated. Enforcing corporate governance through a value-based system of self regulation is more sustainable and meaningful," Central Vigilance Commissioner Pradeep Kumar said today.
He said that good corporate governance creates safeguards against mismanagement and acts as an antidote to corruption.
Kumar also hailed India Inc for incorporating some of the best international corporate governance and disclosure practices close on the heels of international developments.
"India compares favourably with most other developing economies as far as the adequacy of corporate governance regulations are concerned," he said.
The CVC cited Clause 49 of the Listing Agreement of the Securities and Exchange Board of India (SEBI) and the proposed new Companies Bill, 2011 which covers the fundamentals of effective governance in private companies through improved corporate social responsibility, appointment of independent directors, serious fraud investigations, and investor protection especially of minority shareholders.