Beyond governance has been saved
Why promoter-led businesses need to address fraud, misconduct, and noncompliance
Promoter driven or family-owned companies (“PDC”) have been the key contributors of growth for India in the last decade. At a time when multinationals across the world have suffered losses and business closures, a large proportion of PDCs in India have thrived.
We believe that there is a wider need for transformation in the mindset of PDCs on the issue of combating fraud and adhering to compliance. Stringent regulatory regimes and rising opportunities for global investors in Indian market are driving the demand for effective governance across PDCs. The board of directors/senior management needs to prioritise their efforts towards evaluating the existing anti-fraud and compliance structure and enhance its effectiveness to bring in line with global best practices. While certain companies or promoters may see this as an additional cost, investing in these initiatives can play an instrumental role towards upholding reputation, ensuring long-term survival, significant cost savings, avoid regulatory sanctions, and achieve growth aspirations.
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