Corporations have become a powerful and dominant institution. They have reached to every corner of the globe in various sizes, capabilities and influences. Their governance has influenced economies and various aspects of social landscape. Shareholders are seen to be losing trust; and their market value has been tremendously affected. Moreover, with the emergence of globalization, there is greater de-territorialization in corporate governance and less of governmental control, which results is a greater need for accountability (Crane and Matten, 2007). Hence, corporate governance has become an important factor in managing Organizations in the current global and complex environment. There is evidently emerging condition of corporate colonialism. OBJECTIVE OF THE STUDY
It is in view of the influence of the multi-national corporations (MNCs) through their strategy of corporate colonialism, using economic power, that the researchers have chosen this subject to view the current status of Corporate Governance in India while also presenting the subject as dissertation with definition, theories and practices followed. Definition
In order to understand corporate governance, it is important to highlight its definition. Even though there is no single generally accepted definition of corporate governance, it is necessary to define it: it can be defined as a set of processes and structures for controlling and directing an organization. It constitutes a set of rules, which governs the relationships among management, shareholders and stakeholders (Ching et al, 2006). The term “corporate governance” has a clear origin from a Greek word, “kyberman” meaning to steer, guide or govern. From a Greek word, it moved over to Latin, where it was known as “gubernare” and the French version of “governor”. It could also mean the process of decision-making and the process by which decisions may be implemented. Henceforth, corporate governance has much a different meaning to different organizations (Abu-Tapanjeh, 2008). In recent years, with much corporate failures, the countenance of corporate has been scared. Corporate governance extends to all types of firms and its definitions could profitably include covering all of the economic and non-economic activities. Literature in corporate governance provides some form of meaning on governance, but falls short in its precise meaning of governance. Such ambiguity emerges in words like control, regulate, manage, govern and governance. Owing to such ambiguity, there are many interpretations. It may be important to consider the influences a firm has or by which it is affected, to grasp a better understanding of governance. Due to the vastness of influential factors, the proposed models of corporate governance can be flawed as each social scientist is forming its scope and concern in his own way. ETHICS
There is no gain-saying the fact that corporate governance is all about ethical conduct in business. Ethics is concerned with the values and principles that enable a person to choose between right and wrong, and therefore, to select from alternative courses of action, one approach, as the best possible alternative. Further, ethical dilemmas arise from conflicting interests of the parties involved. In this regard, managers take decisions based on a set of principles influenced by the values, context and culture of the organization. Ethical leadership is good for business akin to the ‘General will’ concept as the organization is seen to conduct its business in line with the expectations of all stakeholders. What constitutes good Corporate Governance will evolve with the changing circumstances of a company and must be tailored to meet these circumstances. There can, therefore, be no one single model of Corporate Governance. So, the Corporate Governance is nothing but the moral or ethical or value framework under which corporate decisions are taken. It is quite possible...