Govt considering Godrej panel suggestions on corporate governance

NEW DELHI: The government is looking into a report on corporate governance prepared by the Adi Godrej panel, which looked into various aspects including the necessity of a formal policy on the issue.

The committee, headed by industrialist Adi Godrej, was set up by the Corporate Affairs Ministry in March 2012, against the backdrop of increasing importance of businesses to economics.

In a written reply to the Lok Sabha, Corporate Affairs Minister Sachin Pilot said the report is under the consideration of the Ministry.

The panel had the mandate to elicit opinions about the "necessity of having a formal policy document on corporate governance" besides examining the prospects for making sustainability reporting an integral part of the corporate governance policy framework.

Also, the committee looked into steps needed for a "comprehensive policy framework to enable corporate governance of highest quality in all classes of companies without impinging on their internal autonomy to order their affairs in their best judgement".

Meanwhile, the National Foundation for Corporate Governance (NFCG) is working on a study on corporate social responsibility initiatives of certain companies. NFCG has the mandate to promote better corporate governance practices in the country.