Governance and Ethical Issues in Sahara & Kingfisher

Abstract

This paper revolves around the fundamental theme of corporate governance in private sectors in India in light of the recent scams of Sahara Group and Kingfisher. It elucidates how such scams in private companies also impacts the shareholders of the companies concerned, apart from the scores of employees, customers and the general public. In light of the case, the paper traces how the need of the hour has called for incorporation of corporate governance in the private sector with scores of public investors' interest indirectly vested in the private sector market. In particular, the paper talks about the various governance as well as ethical issues revolving around the two major corporates of India which led to their collapse and destruction of confidence of large number of investors. The political connections of the Chairpersons of the two corporates have also been highlighted to grab the attention towards their reckless spending on the political affairs at the sake of general investors and the common people. The cases analyzed here are significant in terms of the Rupees misappropriated and in terms of the number of people involved or damaged as a result of the frauds.