India’s rise in global dominance rests on corporate governance: Meera Singh, Amway India

India’s rise in global dominance rests on corporate governance: Meera Singh, Amway India

Emphasis on accountability is instrumental in rapidly reshaping the country’s regulatory framework.

“In the current scenario of rapid interlinked economic activity, corporate governance and compliance are not just matters of regulatory framework; they guide on how corporations can strengthen their reputation, shield against risks, and generate sustainable value.

The strategic necessity of compliance is more relevant because of various sectoral legislations, including the Consumer Protection (Direct Selling) Rules, 2021. The norms manage stringent distributor oversight, ethical business considerations and lucid consumer communication by direct selling companies.

However, building an enduring business brand goes beyond compliance. It fosters ethical behavior, ensures transparency, encourages accountability and strengthens business sustainability. Navigating evolving regulations will require proactive organizational agility as a core capability for managing risks while maintaining stakeholder trust.

Evolving regulatory landscape

Therefore, globalisation, digital transformation, increased stakeholder expectations and an emphasis on accountability have been instrumental in rapidly reshaping the changing India’s regulatory framework.

Starting with the Companies Act, 2013, the first law in India to be infused with corporate social responsibility (CSR), it reflects the global shift towards accountability and transparency. Gradually, more stringent regulations were introduced. And the rationale behind this was to protect the investor’s interest and ensure fair business practices through regulations such as the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements Regulations, 2015.

India’s governance model is also influenced by global environmental, social, and governance (ESG) standards and transnational activities that demand transparency. Thus, new-found regulations, whether in banking, technology, financial services, or data privacy, are aimed at risk mitigation in artificial intelligence (Al) and cybersecurity.

Another highlight of the recent reforms like Business Responsibility and Sustainability Report (BRSR), ESG integration, and enhanced CSR provisions, is to uphold a sustainable, stakeholder-driven form of governance. This emphasizes long-term ethical values along with compliance with the law.

New-age challenges

While many advances have happened and companies are ready to meet the expectations, businesses face major hindrances. These include:

Regulatory complexity

The rules, including the Companies Act, SEBI Rules, Insolvency and Bankruptcy Code, ESG Frameworks, and Direct Selling Rules, demand an integrated compliance perspective. Silos are no longer relevant.

Culture over compliance

Governance cannot just be on paper; it is a thought-process, which must be inculcated into culture for adhering to the rules. Thus, it would inculcate a proactive leadership, balanced by integrity and long-term planning.

Digital disruption

With laws such as the Digital Personal Data Protection Act, compliance is no longer optional, while technology is a tool of compliance innovation, which can create threats. From real-time disclosures to electronic filings and digital audits, everything has become the new normal. It necessitates companies to have a strong IT infrastructure and cyber resilience.

Global alignment

As Indian businesses expand globally, they must align with laws such as the Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act for harmonized, cross-border governance strategies.

Governance as a business lever

• Forward-looking companies are viewing governance as a strategic differentiator, not a compliance burden. What does this look like in action?
• Strengthening board dynamics through diverse, independent directors, rigorous evaluations, and active committees.
• Integrating compliance with enterprise risk management (ERM) to anticipate regulatory risks and bolster resilience.
• Technology adoption from AI-driven monitoring tools to automated reporting systems for enhancing accuracy and efficiency.
• Building a culture of compliance with leadership commitment, internal controls, employee training, whistleblower systems, and transparent communication.
• Proactive regulatory engagement to anticipate changes, share insights, and foster trust with regulators.

The road ahead

As the country moves forward to a principle-based governance ecosystem, companies are evaluated not only on what they disclose but on how they act and how they effectively address sustainability, diversity, digital ethics, and responsible innovation. Due to the explosive growth of AI, ESG, and cyber security risks, legal and compliance teams must ensure compliance and be active in grooming governance narratives.

All this means protecting consumers' rights as well as embed the direct selling governance framework. This will translate into action at the front line, ethical and compliant with the company's standards. The Direct Selling Rules have operationalized consumer-centric governance from floors to the boardroom, reinforcing the linkage between operational behaviour and strategic governance principles.

Governance model at the fore

India's rise to global dominance rests on its corporate governance journey. It should be strengthened by reforms and challenged by complexities. The efficacy depends not merely on having a framework but how it gets animated. Thus, it must gain a strategic advantage through leadership, culture, and technology. Presently, governance transcends compliance and serves as a cornerstone of corporate resilience and stakeholder confidence.

Now it’s the time for direct selling companies and businesses across sectors to build transparent, tech-enabled and principle-led governance models. That’s because in today's world, good governance is not simply good business; it is ‘the’ business.”