Corporate Governance in Medium Size Organizations

Corporate Governance came in India after 1996, economic liberalization and deregulation of industry and business. Corporate Governance was needed to separate the management from the ownership. For the Success of a firm, it has to concentrate on the social and economical aspect both. Apart from the responsibilities towards customers and employees, the concept of decision making between shareholders has also been evolved over time. There are studies on how organizations are governed and how they should comply with it. However, these studies are limited only to well-established firms. This paper will discuss barriers in the governance of mid-size organization in an emerging economy, and how the pillars of corporate governance impact the company’s performance by developing and implementing policies, process, procedures, transparency, disclosure, risk management and strategic planning and recommend which mechanism will be more effective for medium size organizations. Next, it will discuss the vulnerabilities in the industry and the scams in India and how to protect the stakeholders and the sustainable growth of the organization and finally will talk about the technological advancement and future of corporate governance in India. This shall conclude that no matter what the size of the organization is, implementing the corporate governance principle, organizations will see the positive impact.