Protection of stakeholders’ interests in the Indian corporate landscape: examining the “ifs and buts”

In the last decade, the Indian corporate landscape has undergone a significant transformation, particularly in terms of establishing rights that benefit stakeholders. These reforms are said to prioritize the interests of stakeholders. New corporate legislations and governance codes are heralded as the harbingers of change. This article argues that despite the legislative reforms, the effectiveness of these changes is limited, and the interests of stakeholders remain largely unprotected. The article also traces the history of the idea of "stakeholderism" in India through legislative changes and judicial interpretations to illustrate the non-linear evolution of the concept guided solely by political-economic factors. The article argues that the laws governing corporations vis-à-vis the rights of stakeholders are nothing more than lip service, ultimately leading to a severe mismatch in the policy vision and implementation. After all, a well-intended law fails to achieve its desired objective if it is inadequately enforced.