Western models of corporate governance based on maximization of shareholder values are inapplicable to the new world.

"Western models of corporate governance based on maximization of shareholder values are inapplicable to the new world. 

Employees whose knowledge contributes 70% of all corporate assets have to become part of any governance process”.

This was stated by Dr. Madhav Mehra, President, World Council of Corporate Governance while addressing company directors in Calcutta at a Seminar on the “Power of Collaborative Governance” organized by the Centre for Corporate Governance headed by Justice Venkatachaliah, Chairman, Constitution Review Committee. Dr. Mehra added, “with a fifth of the world population below the poverty line, poverty and deprivation are going to be the greatest threat to the security of enterprises. Business will have increasingly to involve the stakeholders in developing the strategies for collaborative governance.”

The Seminar was inaugurated by Lord Swraj Paul, Chairman, World Council for Corporate Governance, Lord Paul said “the issue of Corporate Governance is of worldwide importance, but it is particularly relevant to India. The efficiency and accountability of the corporation is now a matter of both private and public interest. World Council for Corporate Governance is creating an international movement to turn the rhetoric of Corporate Governance into reality.”

The Seminar was addressed by Mr. Ashok Kapur, Principal Secretary, Sports and Youth Services – Govt. of West Bengal, Mr. S. R. Mathur, Chairman, IBP Co. Ltd.,     Mr. R. B. Saldana, Managing Director, Haldia Petrochemicals Ltd., and Mr. Raghu Modi, Chairman, Rasoi Group.

World Council for Corporate Governance is assisting developing and transition economies to use Corporate Governance as an instrument of economic and social transformation. It has established a Centre for Corporate Governance in India which has brought guidelines on Corporate Governance. The Guidelines are unique in the sense that they recommend social and environmental reporting as a part of disclosure requirements.