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7/28/2019 CorporateGovernance Presentation
1/19
Transparency 10-1
Corporate Governance
Prepared BySachin Mishra72
Shrikant Gosavi-Gaurish Chaulkar-51
Haaris Baraskar-49
Ratnesh Waghmare-80
Submitted to
Prof-Shweta Rode
7/28/2019 CorporateGovernance Presentation
2/19
Transparency 10-2
Governance Concept in
Ramayana
To provide the maximum happiness for the
maximum number of people for the maximumperiod, based on the principles of Dharma
righteousness and moral values.
- Ayodhya Kand
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Transparency 10-3
Corporate Governance is the application ofbest management practices, Compliance of lawin true letter and spirit and adherence toethical standards for effective management
and distribution of wealth and discharge ofsocial responsibility for sustainabledevelopment of all stakeholders.
-The Institute of Company Secretaries of India
7/28/2019 CorporateGovernance Presentation
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Transparency 10-4
Corporate governance is a set of
system and process to ensure that a company is
managed to suit the best interest of all stakeholders
The stakeholders may be
promoters,
members,
workmen,executives,
shareholders,
customers,
lenders,
vendors,bankers, community government and regulator
It is a system of
making management accountable to the stakeholders
7/28/2019 CorporateGovernance Presentation
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Transparency 10-5
Driving Forces of CG in India
1) Unethical Business Practices Security Scams
Unfair trade practics
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
7/28/2019 CorporateGovernance Presentation
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Transparency 10-6
The principle objective of good corporate governance is to enhance
the value of shareholder. Corporate governance focuses on:
1. Building a structure and rules to govern a
company board of director.
2. Creating independent audit committees made
up of enterprise's board members
3. Ensuring disclosures of all relevant information to shareholdersand creditors, including business risk analyses and
4. Controlling management
7/28/2019 CorporateGovernance Presentation
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It is important to serve the interests of multiple
stakeholder groups
Corporate Governance and Ethical Behavior
Business ethics are moral principles
Ethics refer to the code of conduct that guides the individual
while dealing in the situation.
It relates to the social rules thatinfluence people to be honest in dealing with other people.
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Objectives of corporate governance
High standards of business ethics
Right balance, knowledge and competence
Information
Decision making process
Reputation of the corporation
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Principles of good corporate governance
Equitable treatment of stakeholders
Transparency
Rewards
Vision
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Cont
Rights of company owners
Responsibility
Accountability
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Business Ethics
The value of what should be done and
what should not be done from the
business point of view.
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Ethical issues for business
Product safety standards
Advertising contents
Working environment Unauthorized payments
Employees privacy
Environmental issues
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Corporate Governance with Business ethics
Corporate governance is the function of a companys compliance
with regulatory requirements and, to the extent that it is not
required by law, its adherence to standards that
define relationships between a companys management, its
board, shareholders and other stakeholders
provide a structure through which the companys
objectives are set, and how they are achieved and monitored
recognize the value of business ethics and corporate
awareness of society interests to reputation and long-term
success
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Relationship
Business ethics and corporate governance are twosignificant factors that impact a company and how itoperates. Business ethics represent the values,principles or characteristics that a company followswhen conducting business in the economy.
Corporate governance is the internal framework that acompany designs and implements to govern andprotect those invested into the company. Therelationship between ethics and governance comesfrom an organizations owner or executive managers,who create the governance and decide which ethicalprinciples employees will follow
http://www.wisegeek.com/what-are-business-ethics.htmhttp://www.wisegeek.com/what-is-corporate-governance.htmhttp://www.wisegeek.com/what-is-corporate-governance.htmhttp://www.wisegeek.com/what-are-business-ethics.htm7/28/2019 CorporateGovernance Presentation
15/19Transparency 10-15
The relationship between Law and
Ethics
The law is an expression of the ethical
beliefs of our society
The law cannot codify requirements.
therefore an action might be unethical yet
not necessarily illegal
Similarly, just because an act is illegal
does not necessarily mean it is immoral
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How ethics can make corporate
Goverance more meaningful
Corporate governance is meant to run companies
ethically in a manner such that all stakeholders
Good corporate governance should look at allstakeholders and not just shareholders along
Corporate governance is not something which regulators
have to impose on a management, it should come from
within. There is no point in making statutory provisions
for enforcing ethical conduct
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The elements of corporate governance, inter-relationship between
business ethics and corporate governance with reference to some of the
Indian companies
Dr. Reddy's Lab
The Mastek
HDFC
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CONCLUSIONS
We need to do is to apply the principles ofgood governance to the whole corporation.This could be described as: "looking atManagement through Corporate
Governance-tinted glasses" i.e. taking a freshlook at management structure taking intoaccount all interested parties and ensuring allthe necessary monitoring and controls are in
place to ensure that shareholder value isalways at the forefront.
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CONCLUSIONS
"Effective corporate governance ensures that
long-term strategic objectives and plans are
established, and that the proper management
and management structure are in place toachieve those objectives, while at the same time
making sure that the structure functions to
maintain the corporations integrity, reputation,
and accountability to its relevantconstituencies."