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CORPORATE GOVERNANCE
&
ITS
IMPACT ON CORPORATE ENVIORMENT
PRESENTED TO:
MR. MUKHARJEE
PRESENTED BY
: SWATI (MBA II YEAR)
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CORPORATE GOVERNANCE???
Practices, Principles andValues that guide acompany and its
business
every day, at all levels ofthe organization.
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Fundamental functions ofCorporate Governance Corporate
governance links directly to
three fundamental functions of boards and
the directors of the companies and
shareowners they serve. They are:- Protecting stakeholder
rights.
Managing risk
Creating long-term business value
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Driving Forces of CG in India
1) Unethical Business Practices Security Scams ---Harshad Mehtha
Security Scam
Equity allotments at discount rates to the controlling
groups
Disappearance of Companies (1993-94) - around 4,000
companies with 25,000 crores without starting business
Misdeed of Companies
Plantation, Sheep rearing, etc.
2) Impact of Globalization Integration with Foreign Market
Foreign Investors expectations
New Business Opportunities --- IT & ITES, BPO etc.,
New Capital formation FII, FDI
3) Impact of Privatisation New structure of ownership
Multinational Companies
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Improvement in corporate
governance.
Focusing on the purpose
of the authority.
Informed and transparent
decisions.
Developing the capacity.
Engaging with local
people and stakeholder.
Purpose of corporategovernance is to have a
demonstrable IMPACTon a corporationsFINANCIALPERFORMANCE.
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Governance andperformance Good governance leads to good
performance
It creates an open and transparent system
It improves communication and breaks downsystematic barriers to
flow of information
Good governance allows decision makingbased on data. It reduces
risk
Good governance helps in creating a brandand creates comfort for
all stakeholders andsociety
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Corporate governance & firm
performance
It represents the relationship among
stakeholders that is used to determine &
control the strategic direction & performance
of the organization.
It involves oversight in areas where owners,
managers & members of board director may
have conflicts of interest.
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THE TOP 10 SCAMS IN
INDIA!!!
1) 2G Spectrum Scam
2) Commonwealth Games Scam
3) Telgi Scam
4)
Satyam Scam5) Bofors Scam
6) The Fodder Scam
7) The Hawala Scandal
8) IPL Scam9) Harshad Mehta &
10) Ketan Parekh Stock Market Scam
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Improvements in corporate
governance in Indian companies
Improvements in corporate governance inIndian companies seem
largely to bevoluntary and driven by globalization.
Companies that wish to access markets forcapital are becoming
increasinglytransparent and are more willing to adopthigher
corporate governance standards.
These governance changes are having a
trickle-down effect on smaller Indiancompanies.
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Example: Corporate Governance and CapitalMarkets
Source: A McKinsey Survey of Global Investors
ICSI NATIONAL AWARD FOR EXCELLENCE IN
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ICSI NATIONAL AWARD FOR EXCELLENCE INCORPORATE GOVERNANCE
Best Governed Companies
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Conclusion.
Retain stakeholders,
Access foreign capital,
Become a reputable company to exportglobally,
Desire to become multinational companies,
THEN,
It is important to understand the ways toimprove the corporate
governance for aslong as we keep our economy free and
open.
