Challenges Are Thrown in Corporate Governance during COVID-19

Businesses are the main drivers of any economy and impact all the economic actors explicitly or implicitly. According to Gupta (2010) accountability, transparency, fairness, and responsibility of firms on legal social, and economic grounds are crucial for the wellbeing of every entity of a nation. This is being safeguarded by corporate governance. Corporate Governance helps in achieving organizational goals, control risk, and assure compliance. It helps in establishing formal communication between the stakeholders of the firm and thereby indicates the efficiency and effectiveness of the firm’s management. However, the last 20 years of this century have witnessed several scams and collapses of business houses and COVID-19 has also escalated it. It necessitates the importance and significance of a sound and transparent corporate governance among the organizations.This article highlights the challenges thrown by COVID-19 during the last two years on corporate governance. It stressed the lacunas and gaps in the working of the Board, remuneration the committee, the effectiveness of risk management, and limitation of the risk management framework and also pointed out that corporate governance is highly skewed towards the the interest of shareholders and ignores other stakeholders such as employees, taxpayers when Government bailout companies, liquidity challenges, etc.