Directors' Institute - Rebuilding Trust in Indian Corporates Through Strong Governance

Scams in India are not new, but major industries and organisations are lagging in learning from their mistakes. Be it the Satyam Scam in 2009, the Harshad Mehta Scam, or the Kingfisher Airlines Scam, all were the result of major Corporate Governance failures.

While these frauds were happening with the stakeholders, the economy was badly affected. During those years, a few institutes came forward to create awareness on how important it is for the right people to lead companies. They further tried to focus on meeting the increasing demand for non-executive directors (NED) and independent direc- tors.

However, due to the lack of skill development and professionals on board in the institutes, nothing could work well, leading to people not trusting in the companies anymore to invest further.

Gradually, it has become a habit for many stakeholders and investors not to look into the company’s background and directors' capability to overcome risk in a crisis while investing. 

To break this cycle, the Directors' Institute—World Council Of Directors, an initiative by WDC Leadership School (a part of World Development Corporation), came forward in 2019. The institute aims to rebuild people’s trust in the financial system, leading to the healthy development of the economy.

Adhering to its innovation and incubation centre approach, WDC turns out to be the first in the country to create awareness in sustainability and ESG (Environment, Social and Governance). Not only to the corporate world, but the organisation also helps many underprivileged students through its various activities.

As the demand for NED and independent directors increases globally with each passing day, the Directors’ Institute was approached recently by many companies, such as Spencer Stuart, Korn Ferry, and Egon Zehnder, to build strong corporate governance. Having a proper portfolio available on the company website increases trust in the stakeholders’ vision, leading to a better society as the economy develops with the ongoing circulation of invest- ments.

“We identified a concerning knowledge gap,” explains Zeeshaan Pathan, Group Managing Director and CEO of World Development Corporation. “Many individuals invest in the stock market with minimal understanding of the composition and qualifications of the board of directors. These are the very individuals who are scammed with zero returns at last.”

The questions such as, Who are the directors? Do they possess the requisite expertise, experience, and inde- pendence to fulfil their fiduciary duties effectively? remains unanswered.

To ensure that all investors are well informed beforehand, the Directors' Institute is developing more seamless programs, one of which is a Doctorate Degree in International Corporate Governance. WDC is the only institute in the world that provides a doctorate in the ICG, which is more prestigious than the other world-recognised programme, the International Corporate Directorship Program. Directors’ Institute databank is the most refined pool of CXOs, Board Directors, VPs, and Presidents. It is the most sought-after talent bank for Executive and board-level hiring globally. 

Building credibility and approaching sustainability is where WDC’s DI pioneers a better future with a healthy economy.

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