• Dr.G.K. NAGARAJU

In the post LPG development scene corporate governance is gaining prominence as one of the effective mechanism for sustainable economic development of all economies world over. Today Analysts and Investors view that companies with poor governance often perform less, trade lower, contribute less to economy and lead to unethical corporate practices, bribes & corruption, scams and financial irregularities in all countries. Ineffective corporate governance leads to unsustainable consumption of natural resources. to avoid these scams and financial irregularities, many companies have started corporate governance. Corporate governance mechanism promotes the development of strong financial system in the economy. Strong financial system has positive effect on economic growth and poverty reduction. However corporate governance mechanism in India and other countries is facing some challenges like domination of family members in the boards, Financial Illiteracy of investors, erosion of Ethical & Moral values, Increasing Corruption, Bribes & Financial scams, Inter-Agency disputes in the name of reform efforts. These challenges can be met through measures like stricter observance of code of ethical & moral values, effective implementation of pillars of good governance -accountability, Transparency, Disclosure, Fair, Impartiality, Participation and Efficiency in their corporate governance mechanism and appointing audit committees, ethical committees, Remuneration committees & Nomination committees. SEBI should be given more authority and rigorous punishment being given to corporate entities which do not comply with the law.

Governance, corporate governance, sustainable Economic Development

"ROLE OF CORPORATE GOVERNANCE IN SUSTAINABLE ECONOMIC DEVELOPMENT OF INDIA- SOME CHALLENGES DEVELOPMENT IN INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.9, Issue 7, page no.f808-f813, July-2022, Available :http://www.jetir.org/papers/JETIR2207597.pdf

"ROLE OF CORPORATE GOVERNANCE IN SUSTAINABLE ECONOMIC DEVELOPMENT OF INDIA- SOME CHALLENGES DEVELOPMENT IN INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.9, Issue 7, page no. ppf808-f813, July-2022, Available at : http://www.jetir.org/papers/JETIR2207597.pdf