After the Satyam debacle everyone is talking about corporate governance and the trust factor of a particular company. Until now corporate governance is fancy word which is a subject for the management students. That will be dusted off and will be a hot course. At least in ISB.
Everyone is looking for the most trusted Indian company. There are multitude of opinions. India needs better corporate governance regulations or family run businesses in India do not have any transparency. Given those opinions voiced by the foreign media the companies will undergo a lot of scrutiny before a dollar is invested.
This survey though done by Mint sheds some important light. It is funny this survey should come up today as I was discussing this with my colleague just yesterday night. Among the IT companies we felt that Infosys has a better management, not family runÂ and might have less skeletons in its closet. Out came the Mint survey confirming just that.
Though I do not completely agree with their process of arriving at the conclusion. Mint mentionedÂ a strong board with some big names. The problem is along with Raju and PwC it is the board members which screwed up Satyam. Sure it has a ISB dean a Harvard professor but seriously – board or independent directors means nothing.
TCS which comes from Tata stable should be a better governed company. Reason is simply this : If Satyam screws up it is the only one company which will suffer. Though it hasÂ 6 subsidiaries and 2 Maytas infrastructure companies. The Satyam brand is not stamped on those 10 other companies. It is not the same case with the Tata group. Every company has a Tata brand on it. Either on the top or as a foot note.
The ripple affects could also be very severe for Tata group companies. So everybody will be on their heels. I hope they do. But Infy still rules.
8 most trustedÂ companies as per the survey :
- Tata Communications Ltd
- Tata Consultancy Services
- Tata Motors Ltd
- Tata Power Company Ltd
- Tata Steel Ltd
- HDFC Ltd
- HDFC Bank
Tata dominated the trust worthy companies. Infosys topped it. No surprises so far. But in spite of being the billionaires and stuff Reliance did not figure in the list. Why is that?
Or should I ask : Is Tata groupÂ a most valued enterprise than Reliance group?
I remember someone commented on this blog that only good news comes out of Infosys and bad news never makes its way to media. Not sure if that is true or not but I would like to ask yet another question : Is Infosys the most valuable company?
*Image credit : thorniside via flickr