Using Dharma in Corporate Governance- Problem of Increasing Transparency in the Asian Countries

Abstract

Corporate Governance (CG) has• assumed greater limelight with the series of corporate failings, following which the markets, investors and society at large have begun to loose faith in the infallibility of these systems. Nowadays, the conduct of those who take care of 'public' money is being increasingly scrutinized and tested on 'ethical' standards. It is time for the application of 'dharma ', as stipulated in ancient Indian 'shastras, 'to improve CG India can be proud of what it has achieved · so far in CG practices but, of course, much more needs to be done: CG has been high on the agenda for the Asian regulators, with most markets having introduced comprehensive regulations. The years following the Asian financial crjsis have seen the implementation ofmore rigorous CG standards but it is questionable whether the new rules have actually permeated corporate practices. How to increase CG transparency in the Asian countries is emerging as a major problem? We have provided an overview of studies recently conducted by the ACGA and JP Morgan. No doubt, CG scenario has improved to some extent in the Asia region and some countries have made significant progress, the ethos of CG has yet to sink in. Moves are afoot globally to promote 'convergence' of good CG practices. Full convergence with international accounting and audit standards, better protection ofminority investors, stronger enforcement of existing laws & regulations, are some of the suggestions made to improve CG scenario in Asia. CG in Asia remains, at best, a work-in- progress requiring some rethinkin