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Corporate governance (CG) in India is still in its early stages, yet it has shown consistent progress over the years. This process involves aligning the expectations of shareholders with the management of companies to enhance organizational value. Effective CG requires the active participation of all stakeholders, including shareholders and management, fostering communication, idea exchange, and thorough discussions. Over the past two decades, the landscape of CG in India has experienced significant transformations, with numerous commendable initiatives and regulatory measures introduced by the Government of India and various statutory bodies. These reforms have gradually but positively influenced CG practices across Indian corporations, including public sector enterprises (PSEs), which are government-owned entities. However, despite these advancements, it is important to recognize that CG in India still has considerable ground to cover in order to align with global best practices. This paper critically examines the CG practices of central public sector enterprises (CPSEs) in India, evaluates their performance through the corporate governance index (CG Index), analyzes the characteristics of their CG practices, and proposes strategies for the more effective implementation of robust CG practices within CPSEs in India.
Corporate governance is about controlling and directing the company. The starting point is the objective of the company. In the shareholder model, the ultimate control is with shareholders, who usually aim to maximise company profits and thus put financial value as the company objective. In contrast, the stakeholder model includes other stakeholders, notably employees and customers, alongside shareholders. The integrated model expands the company objective to integrated value, which combines financial, social, and environmental value. This includes not just current stakeholders and shareholders, but also future stakeholders, by representing the environment and people not yet born
Keywords:
Corporate Governance (CG), Central Public Sector Enterprises (CPSEs), CG Index
Cite Article:
"An Investigation into the Corporate Governance Framework of Central Public Sector Enterprises in India", International Journal for Research Trends and Innovation (www.ijrti.org), ISSN:2456-3315, Vol.10, Issue 10, page no.a540-a551, October-2025, Available :http://www.ijrti.org/papers/IJRTI2510053.pdf
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2456-3315 | IMPACT FACTOR: 8.14 Calculated By Google Scholar| ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.14 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator