In January 2009, in what was perhaps corporate India’s largest frauds, Satyam Computer Founder R. Ramalinga Raju resigned after admitting that the company had cooked its books and was overstating its profits. More recently, Reebok India filed a criminal complaint against former top employees, Subhinder Singh Prem and Vishnu Bhagat, accusing them of a financial fraud of up to $233 million. Indian microlenders had faced severe criticism in 2010 for flouting corporate governance practices and adopting coercive tactics to recover money from borrowers. This allegedly led to suicides in Andhra Pradesh, prompting the state to enact a law in October 2010. All these issues, at some level or the other, talk about the lack of implementation of corporate governance.
- What is corporate governance? How is it important in the Indian corporate sector?
- How will the mandatory provision of corporate social responsibility change the perception of the private sector in the eyes of common man?
20 marks / 250 words.
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