Interview Of The Day: ‘Good Corporate Governance Ensures Success Of Business And Its People, In The Long Run’

Interview Of The Day: ‘Good Corporate Governance Ensures Success Of Business And Its People, In The Long Run’

Seema Bangia, head-HR, Mahindra Defence Systems Ltd

Why is a culture of corporate governance important?

It is extremely important; as any culture binds people or employees to a common vision and expectations of any organisation. Corporate governance not only guides employees to drive towards that common goal, but also affects all its stakeholders including customers, vendors and society, as a whole. It gives a direction and creates an image about an organisation. A well-crafted framework of roles and responsibilities goes a long way in ensuring growth of the organisation and its people. Clarity about the vision and mission of the company provides unambiguous and clear-cut directions to employees and leaders alike, resulting in a flawless work process system. The system of corporate governance should be such that there are no malpractices and it is obligatory for everyone to abide by the organisational code of conduct. 

What are the key challenges associated with instilling an effective corporate governance plan? 

The single and foremost challenge is it’s “execution”.  It is very simple to craft a policy or a guideline.  However, one needs to spend more effort in ensuring that all stakeholders understand that.  It needs to be hard-wired into the DNA of organisation’s culture. An organisation needs to create awareness on a day-to-day basis and refresher sessions should be conducted with staff to keep them updated on any change in the company policies. Also, it is primary for the manager and leaders to ‘practice what they preach’. Until and unless this will happen, any sort of governance policy will not have any relevance. 

What are the probable solutions to the challenges mentioned above? 

A regular awareness, walk the talk by the leadership team, creating a culture by imbibing the true essence of this policy, could be some of the probable solutions. The people in the organisation need to know and understand that there are no shortcuts and one has to follow proper procedures and go through relevant and stipulated channels to get the work done. 

Who are the key stakeholders in this? What is the role of business leaders in ensuring transparency in the organisation, across board? 

Stakeholders are all the people/organisations who are directly or indirectly associated with it; including employees, shareholders, vendors, customer, society and community. As I mentioned above that “walk the talk” by leadership team can go a long way in ensuring its true sense is achieved. 

What is the role of technology in ensuring transparency? 

If all the processes are online and visible to everyone concerned, technology can really support this endeavour.  ERP modules play a very significant role here.  However, technology is only a tool to ensure process execution is transparent.  More than that, it’s the attitude and intent that can drive this transparency. 

Hi guys If u like this post please leave a comment in comment box... comment box will top right of every post and bottom of every post. its useful for me give a better information.. check top of the blog there is menu bar in that go to comments i replied for u r comments because there is no direct option for reply for u r comments. if u want to give any suggestion in bottom of blog there is contact information option please leave a msgs with u r mail id sure i will get u.