How Can Indian Corporate Boards Bridge Behavioural and Strategic Gaps for Future Preparedness?
Synopsis
As Indian corporate boards stand firm and inclusive, an urgent call for deeper behavioural and strategic reforms emerges. A recent ISB report reveals critical gaps that need addressing to ensure these boards are future-ready. Explore the findings and understand what it takes for boards to evolve into active stewards of corporate governance.
Key Takeaways
Only 17% of Indian corporate boards are actively shaping strategies.
83% of boards remain passive in their roles.
36% of directors provide limited input beyond management reviews.
Only 27% of directors seek independent information, risking groupthink.
There is a need for boards to evolve into active stewards for long-term value.
New Delhi, Jan 5 (NationPress) Although Indian corporate boards maintain a structurally robust framework, are inclusive, and demonstrate a commitment to stewardship, they need to tackle deeper behavioural and strategic gaps to genuinely prepare for the future, according to a report released on Monday.
The document from the Indian School of Business (ISB) urges Indian corporate boards to transcend basic compliance and assume a more strategic role in shaping the future of the country’s corporate landscape.
Data reveals that a mere 17 percent of boards actively engage in shaping company strategy, while the remaining 83 percent adopt a more passive stance.
Additionally, over one in three directors (36 percent) acknowledge that their boards offer limited or no input beyond assessing management’s proposals.
“Effective oversight necessitates that directors move beyond mere compliance, anticipate risks, and guide management with insight and conviction. As India’s corporate sector expands on a global scale, boards must transform from passive monitors to active stewards of long-term value creation,” stated Sanjay Kallapur, Professor of Accounting at ISB.
This report is grounded in an extensive survey of over 200 directors from BSE 500 companies, evaluating governance maturity in three key dimensions: guidance and oversight, board functioning, and leadership. It also scrutinizes the effectiveness of pivotal committees, including audit, risk management, and nomination and remuneration.
Professor Madan Pillutla, Dean of ISB, remarked in his foreword that the survey “illuminates behavioural patterns, decision-making processes, and leadership styles that dictate whether boards are merely compliant or genuinely governing.”
The findings also indicate that only 27 percent of directors seek information from independent sources, leading to an “echo chamber” effect that can suppress dissent and heighten the risk of groupthink.
“Genuine governance maturity is achieved by cultivating boardrooms that prioritize preparation, diverse perspectives, and the audacity to pose challenging questions,” asserted Nirmalya Kumar, Visiting Professor of Strategy at ISB.
Leadership and committee effectiveness also appear as significant gaps. Although audit committees excel in financial oversight, their involvement in whistleblower and behavioural matters is noted to be limited, as highlighted in the report.
Point of View
It is crucial to recognize the evolving landscape of corporate governance in India. The ISB report highlights a pivotal moment for Indian corporate boards; it's not just about compliance anymore. To stay relevant, they must embrace strategic roles that drive innovation and long-term value creation. This transformation is vital for the sustainability of our corporate sector.
NationPress
6 Jul 2026
Frequently Asked Questions
What is the primary focus of the ISB report?
The ISB report emphasizes the need for Indian corporate boards to address deeper behavioural and strategic gaps to become future-ready.
How many boards actively shape company strategy?
According to the report, only 17% of boards actively engage in shaping company strategy.
What percentage of directors seek information from independent sources?
Only 27% of directors seek information from independent sources, leading to potential echo chambers.
Why is effective oversight important for boards?
Effective oversight is crucial for boards to anticipate risks and guide management with foresight and conviction.
What gaps were identified in committee effectiveness?
While audit committees excel in financial oversight, their engagement with whistleblower and behavioural issues is limited.
