The Strategic Stagnation: Unveiling the Silent Role of Indian Boardrooms

A survey by the Indian School of Business highlights that only 17% of boards play an active role in shaping company strategy. The findings show a compliance maturity, but a lack of strategic foresight among most directors. It calls for a need to move beyond formalities towards effective governance.

A recent survey by the Indian School of Business (ISB) has highlighted a striking finding: a mere 17 per cent of boards actively engage in shaping company strategy. This leaves a significant 83 per cent in a passive role, barely impacting management decisions.

The 'Corporate Governance Report 2025 – The Board's Looking Glass', authored by ISB scholars, surveyed over 200 directors from BSE 500 companies, revealing a notable gap between Indian boards' structural soundness and their strategic impact. Despite compliance in guidance and oversight, the lack of foresight hinders effective leadership.

While the study acknowledges that 98 per cent of boards meet compliance standards, it warns against complacency. It underscores the importance of independent thinking and risk anticipation beyond ceremonial exercises, advocating for more candor and engagement in board-management dynamics.

(With inputs from agencies.)