The aim is that companies can use the scorecard to identify areas of corporate governance that require improvement and can track progress over time. The IFC and BSE also believe that it will be an analytical tool to make board processes more efficient, improve strategy, aid decision making, and manage risks. Companies, they believe will then better understand governance and how it affects their operations.
The IFC believes that an improved governance framework can also help to develop more efficient capital markets. Part of the IFC’s work is to strengthen capital markets across emerging economies. The BSE also hopes that the scorecard will improve investor confidence in Indian companies.
Darrin Hartzler, IFC’s Global Manager for Corporate Governance said, “IFC is involved in strengthening corporate governance worldwide and developing an India-specific scorecard is a step in the right direction. It will result in greater transparency among companies, enhancing investor confidence, access to capital, economic development, and growth.” IFC’s corporate governance initiatives have resulted in 95 laws, regulations, and codes being adopted worldwide.