This paper develops a model of the causes
and consequences of corporate governance
and corporate performance in India. Corporate
Governance as practiced in India has as its
primary goal i.e., optimization of the
performance of corporate entities within the
limitations placed on the corporate work
environment by the intensity of investor
aspirations on one hand and the compulsions
of public interest and situational constraints on
the other. Corporate Governance tries to
enunciate the responsibility of Board of
Directors and Managers, whether defined by
the law or not, to ensure good performance.
The business world is moving in a more
analytical direction with regard to corporate
performance management, still many
companies allow poor communication and
weal collaboration capabilities to hamper their
strategy, decision making and execution
process. It is clear that good corporate
governance has moved from safeguarding the
interest only of the shareholders or owners to
promoting the interest of all its stakeholders,
which include local government, societies,
creditors, bankers, employees as well as direct
consumers. The paper has been brought out
with valid conclusion.

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