IJFANS International Journal of Food and Nutritional Sciences

ISSN PRINT 2319 1775 Online 2320-7876

BOARD INDEPENDENCE AND ITS INFLUENCE ON CORPORATE DECISION MAKING – AN EMPIRICAL VIEW

Main Article Content

Ramachandraiah R.K

Abstract

This study explores the pivotal role of board independence in shaping corporate decision making. Board independence is a cornerstone of effective corporate governance, significantly influencing decision-making processes within organizations. Independent directors, free from conflicts of interest, bring diverse expertise and perspectives to the boardroom. They play a critical role in overseeing management decisions, ensuring alignment with shareholder interests, and upholding ethical standards. By scrutinizing proposals and challenging assumptions, independent directors contribute to objective decision-making that prioritizes the company’s strategic goals and sustainability. Governance structures enriched by independent oversight, such as audit and compensation committees, bolster transparency and mitigate risks. Independent directors oversee compliance with regulatory requirements and promote best practices in corporate governance, enhancing stakeholder trust and confidence. Strategic oversight by independent directors is instrumental in navigating competitive landscapes and industry challenges. Their involvement in evaluating strategic initiatives, mergers, and acquisitions helps mitigate risks and capitalize on opportunities, fostering long-term value creation. During crises, independent directors provide steady leadership and decision-making grounded in unbiased analysis and stakeholder interests. Their role in crisis management underscores the importance of robust governance frameworks in safeguarding corporate reputation and resilience. Challenges include defining and maintaining independence criteria, balancing diverse perspectives in board dynamics, and adapting to evolving regulatory landscapes. Future trends point towards enhancing board diversity, leveraging technology for governance efficiency, and integrating ESG considerations into decision-making processes.

Article Details