GVC Ratings Corporate governance is about commitment to values and ethical business conduct.

Good corporate governance is reflected in fair, transparent and responsible interactions between a company's management, its board of directors, shareholders and other stakeholders. Which is why it is essential to have a corporate governance rating by a ratings agency in India? A pioneering product CRISIL GVC (Governance & Value Creation) assesses corporate governance practices at companies with respect to their impact on all stakeholders who deal with the company such as employees, suppliers, shareholders, lenders and society. CRISIL's analysis of corporate failures reveals that they are largely attributable to shortcomings in corporate governance practices. The broad areas of failure are: Accounting frauds carried out in collusion with statutory auditors Lack of independence of the board with board members having significant financial linkages with the companies Insider trading Disproportionate compensation paid to executive board members and senior management Fiduciary failure by the board to exercise care and diligence in approving proposals, even though all the information was provided by the management Weak internal control mechanisms and lack of supervision Corporate governance has thus become a critical area of focus for various market participants and stakeholders. Corporate governance is about commitment to values and ethical business conduct. Good corporate governance is reflected in fair, transparent and responsible interactions between a company's management, its board of directors, shareholders and other stakeholders. Which is why it is essential to have a corporate governance rating by a ratings agency in India.