Good corporate governance is good business.

Neeraj Bhargava, co-founder and group chief executive officer of WNS (Holdings) Limited in The Wall Street Journal, August 28, 2006.

Mr Bhargava’s oped piece in today’s Journal recounts why his company decided to go public on the NYSE.  He said the decision was driven by multiple factors including the credibility conferred by the governance requirements of Sarbanes-Oxley, and the global visibility of a major stock exchange that helps build brand recognition.  Basically, he viewed SOX as a quality control mechanism for assuring better defined business processes and efficiency that can translate into long-term lower cost of capital and financial flexibility.

Since good corporate governance starts with improved legal literacy, Mr Bhargava’s analysis rates five stars in my book.

This entry was posted on Monday, August 28th, 2006 at 11:59 am and is filed under Corporate Governance, Costs, Decision Making, Leadership, Quote of the Day. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.