Corporate Standards in India Essay Example | Topics and Well Written Essays - 1250 words

Corporate Standards in India - Essay Example Alternatively, it has an aesthetic sense of restoring the damaged integrity of the nation of India. On that note, the paper has expounded on several practical mechanisms such as the search for universal standards, instill corporate standards and implementing convergence of standards in the Indian companies among others. For the last five years, several corporate scandals have rocked India hence leading to the damage of its integrity. From Barclays issuing false numbers in the financial market of London to bribes-for-loans scandal, India has been wading in corporate graft (Bilal 2008, p.56). On that note, there are several ways to improve the corporate standards to save the image of India. This is to avoid financial losses and loss of jobs and resources. Therefore, the first method of upholding the corporate standard is to search for universal standards. It is imperative to observe that the mechanisms of corporate governance fluctuate from country to country. On that aspect, it is fun damental to note that political, economical and social perspectives define corporate governance (Buthwar 2011, p.78). This means the corporate practice of Indian companies should echo its set national ethos and value systems. For instance, in the Barclays scandal, its leadership should step down and investigated to reveal the motive of their virtues. Additionally, the form of corporate governance should be inculcated among managers and customers in order to understand the limits of conducting business transactions. This has a positive implication of reducing cases of corporate graft as observed in the recent years in India. Another crucial matter involves assimilation corporate philosophy among various organizations to avoid scandals such Forex derivates scam and Andhra Pradesh land that saw the companies lose $5.79 billion and $18.1 billion respectively. Alternatively, it is critical for major shareholders in such organizations to call for higher stakes in the contribution of the c ompany. This suggests that despite the management of the company having a special status, shareholders should work in cooperation with the managers to avert cases of corporate scandals. Furthermore, it should be upon the corporate heads to increase globalization of encouraging competitive business that does not condone corruption. This is why the Organization for Economic Co-operation and Development (OECD) was established to work as a benchmark for monitoring Indian corporations. Another better method to instill corporate standards is to implement convergence of standards in the Indian companies. This entails shaping their corporate according the global market orientation such as in the US and UK in order to limit cases of fraud. For example, the telecoms scandal that made India lose up to $ 462 billion could have been avoided if better convergence standards were in place. In other words, the companies that acquired illegal licenses without proper qualification could not have resul ted to such financial damage. Alternatively, the concerned corporations could have properly mitigated other scandals such as the Barclays and Mumbai Sales Tax fraud. Again, this method of standardization has the benefit of integrating financial markets and foreign investor requirements. This is known to encourage higher standards and practices of