Corporate governance

Submitted to: Submitted By:

Dr.Jaya Shrivastava 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
Thank You