Business Environment, 1st Edition by Pearson

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Part IV: Business and Society

(6) Good corporate governance also ensures better management

structures and systems. In many developing countries, pro-

moters are directly involved in the management of the fi rms

they help to promote. For example, throughout Latin America

and parts of Asia including India, promoter families have been

dominating business enterprises. However, in the wake of glo-

balization and the increasing integration of regional markets,

this trend is now changing. Nowadays, fi rms in these countries

increasingly adopt modern management strategies, techniques

and fi nancial accounting systems. These changes inevita-

bly lead to delegation of authority, increased attention to HR

policies and use of modern management information ...