Understanding Corporate Governance

Corporate governance refers to the system of rules and processes that direct and control a company. It has gained increased attention due to scandals and failures in the corporate world and a growing awareness of a corporation's impact on the environment and society. While historically focused on shareholder rights, good corporate governance now aims to balance the interests of all stakeholders and operates on principles of fairness, transparency, risk management, responsibility, and accountability. In the Indian real estate sector, regulatory changes and industry consolidation have led to improved governance practices, but there is still room for further improvement in terms of inclusivity, transparency, and social and environmental impact.