The pillars of Corporate Governance

Corporate governance refers to the way an organization is governed by it. It is the method that enables businesses to maintain a balance between their internal relations and stakeholders, i.e. shareholders, management, consumers, suppliers, financiers, government and community, etc., to provide their external parties with material and non-material information. Governance implies power, and corporate governance implies corporate control and management. After the second half of the 1990s, the idea of corporate governance originated in India due to the liberalization and deregulation of industries and businesses and was initiated as a voluntary initiative to be embraced by Indian companies by the Industry Association Confederation of Indian Industry (Cll). After that with the implementation of clause 49 of the listing agreement, it gained mandatory status in the early 2000s, as all companies listed on stock exchanges were forced to meet those requirements. As time changed, businesses also needed greater transparency for their stakeholders. Corporate governance is a multidisciplinary area of research covering a broad variety of areas, including accounting, consultancy, economics, ethics, banking, law, and management. Corporate governance's main role is to make agreements defining the rights and tasks of shareholders and the company. Corporate governance must put everybody together in the event of disputes due to conflicts of interest. It also has the role of setting norms against which it is possible to handle and administer corporate work. The four pillars of Corporate Governance

• Transparency: From time to time, a corporation must report all the details needed about its financial and non-financial activities. In particular, any significant adjustments in finance, along with the gains and losses incurred in its annual financial statements or annual reports, must be reported by the company.
• Fairness: The organization must be unbiased and must offer just justice without any favoritism and prejudice to all the members of the organization. The business must have an atmosphere of respect and fair treatment with transparent and frank contact.
• Accountability: In addition to focusing on potential revenue for shareholders, management should also be kept accountable and safeguard the interests of shareholders. The corporation should also evaluate and be responsible for the needs of its stakeholders, such as providing the company's staff with a safe working atmosphere and delivering quality goods and services to its customers.
• Integrity: This results in an efficient decision-making process in the company, taking the interests of shareholders and stakeholders into account. In addition to profit-making, it also enables the business to retain a considerable period in the market.