Slackening corporate governance

Incidents like BluSmart collapse mar a sector's growth prospects and add to a growing list of companies ignoring governance standards

- MANISH SINGHAL

THE COLLAPSE OF BluSmart, the electric vehicle taxi service, has not only dampened business sentiments, but also had a debilitating impact on a section of the population which had seen a reliable and clean mode of transport emerge like a breath of fresh air. What BluSmart managed to achieve in a short span of time was commendable—a great brand, creating value for the customer, and earning their hard-earned trust.

In a competitive market like India, it is extremely tough for new offerings to endear themselves to consumers, especially in case of consumer-facing service. Pricing, market coverage capabilities, and the ability to consistently deliver services are factors which help a company stand out, and BluSmart seemed to tick all the boxes.

Unfortunately, it has also unravelled like Kingfisher Airlines and Jet Airways—both brands which were able to carve a distinctive identity due to their exemplary services during the peak of their operations.

Obviously, these companies are not the only ones who have fallen from grace due to lack or complete ignorance of strong governance standards. The list is long and the way things have panned out in India Inc in the past decade in this metric, it is a matter of grave concern that some companies seem to be ignoring the basic conception on which robust and thriving business corporations are built.