The report is based on a survey of over 200 directors from BSE 500 companies
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Only 17 per cent of board directors of Indian companies actively shape strategy, according to findings of a study by the Indian School of Business (ISB).
In its `Corporate Governance Report 2025 – The Board’s Looking Glass’, the business school has called for Indian corporate boards to move beyond compliance and play a more strategic role in shaping the country’s corporate future.
While Indian boards demonstrate structural soundness and compliance maturity, many lack the strategic foresight and behavioural readiness needed for future leadership, according to the report.
The report, authored by Sanjay Kallapur, Professor, ISB; Nirmalya Kumar, Visiting Professor, ISB; and Harish Raichandani, adjunct faculty, ISB, is based on a comprehensive survey of over 200 directors from BSE 500 companies.
The findings show that only 17 per cent of boards play an active role in shaping company strategy, while the other 83 per cent play a more passive role. More than one in three (36 per cent) admit their boards provide limited or no input beyond reviewing management’s plans.
The report assesses governance maturity across three dimensions — guidance and oversight, board functioning, and leadership — and examines the effectiveness of key committees including audit, risk management, and nomination and remuneration.
According to Madan Pillutla, Dean, ISB, the survey “shines a light on patterns of behaviour, decision-making, and leadership that determine whether boards merely comply or truly govern.”
Published on January 6, 2026
