Governance and Value Creation Grading

Corporate governance is about commitment to values and ethical business conduct. Good corporate governance is reflected in fair, transparent, and responsible interactions among a company's management, board of directors, shareholders, and other stakeholders. Our Governance and Value Creation (GVC) Gradings assesses corporate governance practices at a company with respect to their impact on all stakeholders who deal with the company, such as employees, suppliers, shareholders, lenders, and society.

A CRISIL GVC grading indicates the capability of the entity with respect to creating wealth for all its stakeholders, while adopting sound corporate governance practices. The grading measures the balanced creation of value among all stakeholders using a judicious mix of qualitative and quantitative parameters.

The distinctive features of CRISIL GVC© Gradings:

• Offers a reliable and independent view of the corporate governance practices
• Looks at actual practices through an interactive process, thereby going much beyond the scope of audit of regulatory compliance
• Takes into account the perspectives of all stakeholders (shareholders, debt holders, employees, customers, suppliers, and the society at large)
• Quantifies the value created on account of good governance practice
• Recognises crucial role of stakeholders in value creation for shareholders
• Provides an appropriate balance of quantitative and qualitative factors

For link to the methodology, please click here