IPL, a vision to enhance the brand value of cricket, is today on the front pages of newspapers/tabloids for all wrong reasons. As the dust surrounding the infamous Satyam debacle was settling, the IPL story has raised eyebrows of investors and hoi-polloi over the functioning of businesses in India. Both IPL saga and the Satyam scandal have raised questions on the corporate governance framework, values and ethics of India Inc. Some of the similar points of concern evoked in the both the stories are presented here in the article:
1. Satyam scandal was the result of failure of Independent Directors in discharging their duties effectively. Similarly, the role of governing council of IPL needs to be questioned in the IPL controversy.
2. Vesting of unchecked autonomy in the reigns of business leaders especially aggressive leaders like Lalit Modi & Raju is to be debated. An uncontrolled leash in the hands of these two leaders is doubted by many as the major reason behind these two stories.
3. Indian corporate governance requires independent directors to be completely unrelated to the assets of the company and business of the company in order to bring unbiased opinions to the table. A similar concept needs to be applied to the members of governing council of IPL, ensuring that the members do not own any stake in any of the IPL teams in order to ensure transparency and non-biasness in the working of the IPL.
Surely both the cases have blemished the corporate governance followed by India Inc. The need of the hour today is a well directed effort to make the principle “Walk the Talk” implemented as the above points have been debated and mulled over by the think-tanks numerous times and now is the time to enforce and implement them.
Popularity: 1% [?]
Recent Comments