Does corporate governance affect the financial performance and quality of financial reporting of companies? A study on selected Indian companies

Abstract

Suppose I have come by a fair amount of wealth, either by way of legacy or by means of trade and industry. I must know that all that wealth does not belong to me; what belongs to me is the right to an honourable livelihood, no better than that enjoyed by millions of others. The rest of my wealth belongs to the community and must be used for the welfare of the community. “M.K. Gandhi ” The philosophy of trusteeship states that wealth creators are trustees of society and they have responsibility to look after all components of social, economic and natural environments. The concept of trusteeship promulgated by Mahatma Gandhi implies stewardship without ownership and the stewardship is not for private profit but for the welfare of all. The Gandhian philosophy of trusteeship is a moral foundation of corporate governance. Those firms that have a broader aim than profit maximization focus on ethical practices in business, accountability towards stakeholders and the environment in which these operate.