­Impact of Globalization on Corporate Failures & Corporate Governance

Authors: Dr. Christabell Joseph, Associate Professor at Christ University, Bangalore & Steffi Desousa, Student at ICFAI University, Hyderabad

Best Citation – Dr. Christabell Joseph & & Steffi Desousa, Impact of Globalization on Corporate Failures & Corporate Governance, Indian Journal of Legal Review (IJLR), 3 (1) of 2023, Pg. 519-523, ISSN – 2583-2344.

Abstract

“Where globalization means, as it so often does, the rich and powerful now have new means to further enrich and empower themselves at the cost of the poorer and weaker, we have a responsibility to protest in the name of the universal freedom”- Nelson Mandela

Globalization has been the quintessential element of business since liberalization of trade and privatization of commerce in 1991. It holds great weightage over the community, competition, technology, environment, lifestyle, commerce, trade and economy of the world. Any component which has such eminent power also has the responsibility to be sustainable to all of its stakeholders. It is necessary to note that Corporations are an indispensible part of the globalized community. Industrialization was the seed which blossomed into corporatization which fructified into globalization. Hence, there is the necessity to regulate the corporate way of trade and commerce with the communal life, this gives rise to Corporate Governance. This form of regulation ensures the humanitarian facet of the prosperity oriented corporate society and holds them accountable for any communal wrongs which affect population. Corporate governance is that which acts as a conscience and that which encourages corporations to care about the greater good. This paper focuses on how globalization has impacted corporate governance and the challenges it faces, in the form of corporate failures. The author aims at suggesting ways to better the relationship between Corporate governance  and Globalization, as both are inseparable sides to the same coin.

KeyWords:  Globalization, Corporate governance, Corporate failures, Corporate accountability, MNC