Corporate Governance in India: Understanding the History and Peeking into the Future

Abstract

Family-controlled enterprises are undergoing several changes. First, socio-cultural change has changed the concept of a family firm from a firm governed by extended families to a firm controlled by individualistic families (Roy, 2018, p 233). However, the concept of family-controlled business remains intact. Second, due to a strengthening of professional management education in India, scions of business families are well educated, exposed to the outside world, and conversant with managerial practices and business environment in developed societies (Tripathi and Jumani, 2013, p 212). Consequently, those who are currently at the helm of family-controlled companies are well-qualified professionals. As a result, their attitude towards their children has changed. They appreciate that their children have the right to pursue their passion and choose a career of their own. A recent statement by Kumar Mangalam Birla, who is at the helm of the 162-year old conglomerate, signals the change in attitude. He said that growing up, he did not have a choice to pick his career path, unlike children 3 a₹tha (June 2021) Indian Institute of Management Calcutta today who have options to pursue their interests. He and his wife feel that children should have a chance to pursue their passion (Tandon, 2020).