Corporate Governance

Corporate governance

Submitted to: Dr.Jaya Shrivastava

Submitted By: Yashika (6055) MBA IV Sem

Corporate Governance A system of structuring, controlling a company with a view to achieve goal to satisfy stakeholders, and complying with legal & regulatory requirements apart from meeting environmental & local needs.

Principles of Corporate Governance Rights and equitable treatment of shareholders Interests of other stakeholders Role and responsibilities of the board Integrity and ethical behavior Disclosure and transparency

Mechanisms & controls of Corporate governance Internal corporate governance controls Monitoring by the board of directors Balance of power Remuneration

Mechanisms & controls of Corporate governance External corporate governance controls Competition Government regulations Media pressure

Problems of Corporate governance Demand for information Supply of accounting information

Does performance depend on governance Most companies which have grown in the last 25 years have outstanding performance and have good governance structure. A good governance structure treats all stakeholders fairly.

Investing in Corporate Governance Companies need to invest in good governance Corporate governance has a direct bearing on business performance and thereby ROI On average, businesses with superior governance practices generate 20 percent greater profits than other companies A study based on 256 companies conducted at the MIT Sloan School of Management

HRD Implications Sharing of vision with the co-workers at all level enhances transparency & participative behavior. It ensures greater accountability ,appreciation of productivity, efficiency & competitiveness of the firm. Recruitment policy should be competence based. Continuous in- service training, incentives showcasing of role models, are all useful components.

Corporate Governance in Organizations The Motorola Code of Business Conduct sets the standards for Motorola's commitment to uncompromising integrity. Since its original establishment in the 1970s, the Code has provided Motorola employees guidance for their business activities, placing a priority on establishing trust with its stakeholders- MOTOROLA

Cont’d Your company believes that for a company to be successful it must maintain global standards of corporate conduct towards its stakeholders. The company believes that it is rewarding to be better managed and governed and to identify its activities with national interest- ONGC

Reference www.Wikipedia.org Kesho prasad- Corporate Governance

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