PRESENTATION ON

CORPORATE GOVERNANCE CONSUMERISM

Presented To:Shweta Mehta

Presented By:Group No:20

S.K.PATEL INSTITUTE OF

MANAGEMENT AND COMPUTER STUDIES

Ankit Vashith……………………….……………05 Jignesh Chavda………………………………….18 Pankaj Kamaliya…………………..…………..40 Imtiyaz………………………………………………46

Group Members……

Name Roll No.

Introduction.

Objective

About the corporate governance consumerism.

An India and international position review.

Disclosure And transparency.

Review of overseas Development on Governance.

Measures to improve corporate conduct.

Some of the Indian Organization.

Governance Concept in ‘Ramayana’

To provide “the maximum happiness for the maximum

number of people for the maximum period, based on the

principles of Dharma – righteousness and moral values.”

- Ayodhya Kand

Introduction …

“This is a system by which companies are run, and the means by which are responsive to their Shareholders employees, and society”.

Boards of directors are responsible for governance of companies.

Corporate governance is also concerned with ethics, values. And morals of a company and its directors.

Objectives…

The objective of corporate governance is• Socially responsible,• Accountable and,• Transparent management .

Having better access to external finance. Lower costs of capital. Improved company performance. Higher firm valuation and share performance. Reduced risk of corporate crises and scandals

About The Corporate Governance Consumerism…

The economic system and financial crisis which began in 1998 in certain Asian countries and spread to other regions of the world that’s reason need for a reliable and transpararent management system.

Ethical and socially responsible company generally conforms to the standards of good corporate governance.

E.g.: Mckinsey quarterly found that they will pay a large premium for companies would be willing to pay as much as 30% more for share in companies with good governance.

Corporate Governance In India....

India is vast. Vibrant economy.Vibrant economy structure including independent firms and those owned by business groupe.families and MNC’s.

Since 1991. hostile takeover insider trading. Issue of duplicate shares(reliance).Harshad maheta scam(regging of prices).KP scam.

Have emaciated the credibility of the stock market in India .

Every disaster was a good learning experience followed by new regulations.

Reasons For The Growing Demand of…..

•The concept of corporate governance is to some extent similar to the quality practices adopted under the ISO standard.

•The key Question is to ensure how effectively organisation are managed.

•Its concerned with the…… Value,vision,visibility,Ethical norms for its performance,

Reasons For The Growing Demand Of..Cont’d

Sir Adrian Cadbury committee ……..London Stock Exchange.

Financial reporting council ……........Britain .

Greenbury committee ……………........London Stock Exchange.

The blue ribbon committee……….......US.

Confederation of Indian industries…..India.

King committee ………………………………..South Africa.

Narayana murthy committee……………India.

Corporate Mis-Governance

The ownership structureThe structure of company boardsThe financial structure The institutional environment

We lay structures over the corporate business, and fail to organize the business

Corporate Performance Management reports against overlaid structures

We govern the corporation by rules and regulations, because we cannot manage the actual business

Factor influence the corporate governance

Out Comes…..

External Environment

Societal benefits

Gov’t regulations, policies,guidelines,etc.

Influences on sector.

SEBI External stakeholders

Int.Environment

BOD,Int,stakeholders,Co.vision,mission Etc

Corporate governance

TransparencyProper governance Shareholders values

Investors protection Concern for customer

Healthy corporation sector development

Actions…..

There are regulatory and voluntary actions

Fairness:- protecting shareholder rights and ensuring the enforceability of contracts with resource providers.

Transparency:- requiring timely disclosure of adequate information on corporate financial

performance. Accountability:- roles and responsibility.

Responsibility:- law and regulations that reflect society’s values and objective.

Key To Good Corporate Governance…

Board constitution Board should be good working knowledge of corporate finance.Each member should be able to devote sufficient time to his duties and responsibilityBoard committee on compensation ,audit and nomination should consist only of independent directors.

Board responsibilityApprove a core philosophy and mission.Evaluate corporate performance Evaluate corporate strategy. Evaluate board performance.Communicate with shareholders.

Disclosure And Transparency…

Disclosure and transparency are the partners of good governance.

The quality and reliability of information -financial and non financial provided bi management to leaders, shareholders. And public .

Disclosure and transparency enable at the investor to take informed decision .

That all the relevant information is made available to the shareholders.

Why Disclosure And Transparency Matter… Material impact on the cost of capital

Increase the confidence among the decision makers and directly affect the growth and profitability.

Also help full to outside the decision maker regarding investment decision in the organization.

Helps public understanding of a companies activities' policies and performances with regard to environmental and ethical standard and its relationship with communities.

Know about thestoke market liquidity.

Corporate Governance And Indian Organization…

Infosys…..

&

About the organization…

Infosys, based in Bangalore, is a publicly held, ISO 9001 certified company offering information technology consulting & software services

Respected across the country, with very strong systems, high ethical values & a nurturing working atmosphere.

Net income of US 1,155 million and revenue of US 4,176 million.

At present having US 20.4 billion market capitalization

Global Delivery Model

Producing where it is most cost effective to produce & selling where it is most profitable to sell.

Moving up the Value Chain

Getting involved in a software development project at the earliest stage of its life cycle.

PSPD Model

Predictability of Revenues, Sustainability of Revenues, Profitability, Decision-making and risk taking

Narayana Murthy’s Global Strategy….

Voted as the Best Managed Company in Asia.

Biggest exporters of Software.

First to follow the US Generally Accepted Accounting Principles before going for Nasdaq listing in 1991.

Championed Corporate Governance in India

Achievements…

Thank You