BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY

CORPORATE GOVERNANCE
AGENCY THEORY & ROLE OF CEO IN COMPANY.

GROUP MEMBERS

TEJAL SHINDE
BHAGYASHREE RODE ASHWINI NANAVARE SONIKA SINGH STEFFIE STEFHEN SWAPNAJA FAWADE JYOTI MUSALE.

fundamental objective of corporate governance is the enhancement of the longterm shareholder value while at the same time

protecting the interests of other stakeholders.

SEBI (Kumar Mangalam Birla) Report on Corporate Governance, January 2000

What is Corporate Governance?

The Manner in which a Corporation is
Run Achieving its Objectives Transparency of its Operations Accountability & Reporting Good Corporate Citizenship The Processes & Operating Relationships that Best Achieve Organizational Goals

COMMONLY ACCEPTED PRINCIPLES OF CORPORATE GOVERNANCE INCLUDES..

Rights and Equitable Treatment of Shareholders Interest of Other Stakeholders

Role and Responsibilities of the

Board Integrity and Ethical Behavior

Disclosure and Transparency

ROLE OF SEBI IN CORPORATE GOVERNANCE

Issue of guidelines Public interest advertisements Dealing with complaints of investors Investors education Investor surveys Disclosures by companies Code regarding takeovers
SECURITY EXCHANGE BOARD OF INDIA

SOME OF THE IMPORTANT CONCEPTS IN CORPORATE GOVERNANCE..

INSIDER TRADING
WHISTLE BLOWING

INSIDER TRADING

Insider trading refers to

trading on price sensitive information by company employees or individuals closely connected with the firm this information has not been disclosed to other market

participants.

WHISTLE BLOWING

It is an attempt by a member
or ex-member of an organization to disclose wrong doing in or by the organization. It is an action which takes place within the organization

TYPES OF WHISTLE BLOWING

IWB: INTERNAL WHISTLE BLOWING

EWB: EXTERNAL WHISTLE BLOWING

BENEFITS OF WHITLE BLOWING

Dealing with misconduct internally. Employees will be assured that they will not suffer relation.

Benefit to company.
It provides channels of communication to employees for responding to wrong doing in the organization.

Consequences of whistle blowing

Poor evaluations. Demotion. Outright dismissal. Blacklist whistle blowers so they cannot obtain jobs in the same industry. Suffer career disruption. Job dislocation Family face problems.

AGENCY THEORY
Agency theory is defined as the relationship between the principals such as shareholders and agents such as the company executives and managers

Agency relationship arise whenever one party delegates decision making authority or control over resources to another

Principal Agent relationships Principal : person delegating authority. Agent :person to whom authority is

delegated.

AGENCY PROBLEMS
Agent and principal may have different goals. Agents may pursue goals that are not in the best interest of their principals. Agent may take advantage of information asymmetries to maximize their interest at the

expense of principals.
It is difficult for principals to measure performance.

ROLE OF CEO IN A COMPANY

Equitable Treatment of Shareholders.

Interests of other Stake-holders.

Role and responsibilities of board. Integrity & ethical behavior.

Fostering a corporate culture.

Maintaining a positive and ethical work.

Disclosure and transparency Constantly improve Essentials to human progress To provide leadership Ensure continues improvement in quality Ensure succession plan