The recent governance lapse highlighted in the IndiGo incident has once again brought the spotlight back on the significance of strong corporate governance in India Inc. In response to the concerns raised by the Government, the Institute of Company Secretaries of India (ICSI) has urged companies to revisit and reinforce their governance structures, emphasising that board-level accountability is central to sustainable and responsible corporate conduct.
The Indigo episode has exposed gaps in oversight and crisis preparedness — reminders that even established and reputed companies are not immune to governance failures. According to ICSI, robust governance is not only a compliance obligation but also a strategic necessity. A well-functioning governance framework ensures:
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Preparedness to anticipate risks,
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Accountability at the highest levels, and
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Effective response mechanisms during crises.
In today’s dynamic business environment, stakeholders expect greater transparency and responsibility from corporate boards. Failures in governance can erode public trust, investor confidence, and long-term value.
The Role of Independent Boards and Strong Oversight
ICSI has reiterated the critical role of independent directors, vigilant stakeholder oversight, and effective risk management systems. Boards must adopt proactive approaches in identifying red flags, intervening early, and maintaining open and transparent communication channels.
This means companies need to move beyond a check-box approach to compliance and embrace governance as a cultural and strategic pillar.
Company Secretaries: Custodians of Ethical and Sustainable Conduct
The ICSI stressed that Company Secretaries play a pivotal role in fostering ethical, accountable and sustainable business practices. CS Dhananjay Shukla, President of ICSI, noted that the IndiGo incident serves as a strong reminder for companies and professionals to ensure that governance frameworks are not only implemented but also continuously strengthened to preserve shareholder value and public trust.
Corporate Governance: A Continuous Responsibility
ICSI has also urged corporates to review and update their internal structures and processes to better protect stakeholder interests. Secretary of ICSI, emphasised that corporate governance is not a one-time exercise but an ongoing responsibility that must evolve with emerging risks and stakeholder expectations.
The institution reaffirmed its commitment to promoting best practices, aiding the corporate sector in adopting frameworks that ensure long-term sustainability.
Conclusion
The IndiGo incident is more than a standalone event — it is a wake-up call. As Indian corporations navigate increasingly complex operational landscapes, good governance and strong board oversight have become indispensable. ICSI’s call to action highlights the urgent need for companies to strengthen their governance models, embed accountability at every level, and cultivate a culture of transparency.
In the evolving business ecosystem, sustainable success will belong to those entities that treat governance not merely as compliance but as a core element of corporate strategy.