Everonn Education Ltd., a leading provider of education service has claimed that "it would provide all cooperation to all concerned as necessary to clearly demonstrate its commitment and adherence to principled corporate governance". The company has said this after its CEO was caught red-handed bribing an Additional Commissioner of Income Tax. The non-executive Chairman of the company, J J Irani has since resigned from the Board of Directors. Mr.Irani is a former MD of Tata Steel Ltd.
Why should a company "affirm" its adherence to corporate governance after recklessly violating it? Can it not stop with confirming its readiness to cooperate in enquiries that are bound to follow? Does the company really believe that its claim of adherence to governance is credible? Crisis management requires transparency and frank admission of proven guilt. Mouthing non-existing allegiance to exemplary principles of conduct is a classic case of crisis mismanagement. Will corporates ever learn?
Farther away from home, the happenings at Sino-Forest Company, Canada are another instance of gross violation of principles of governance. The role of Ernst & Young has also come in for criticism. It is not clear how many more cases of corporate chicanery will come out in the open in the near future.
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