BUSINESS ETHICS & CORPORATE GOVERNANCE TOPIC: GLOBALIZATION AND CORPORATE GOVERNANCE Submitted to Submitted by Anoop R Thushara.M MBA dept. MBA dept.
Aug 18, 2015
BUSINESS ETHICS & CORPORATE GOVERNANCE
TOPIC: GLOBALIZATION AND CORPORATE GOVERNANCE
Submitted to Submitted by
Anoop R Thushara.M
MBA dept. MBA dept.
The movement towards the expansion of economic and social ties between countries through the spread of corporate institutions and the capitalist philosophy that leads to the shrinking of the world in economic terms.
GLOBALIZATION
FEATURES OF GLOBALIZATION Operation & planning to expand business
throughout the world. Erasing difference between domestic & foreign
market. Buying & selling of goods & services from
any country. Establishing manufacturing & distribution
facilities in any part of the world. Product planning& development are based upon
international considerations. Sourcing of material from any part of the world. Global orientations in strategy formulation. Considering the entire globe as a single market
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE ?
Father of Corporate Governance – Adrian Cadbury (1992)
Corporate governance refers to the set of systems, principles and processes by which a company is governed.
They provide the guidelines as to how the company can be directed or controlled such that it can fulfill its goals and objectives in a manner that adds to the value of the company and is also beneficial for all stakeholders in the long term.
o Stakeholders include everyone ranging from the board of directors, management, shareholders to customers, employees and society.
INTERNAL CONSTITUENTS EXTERNAL CONSTITUENTS
Board of Directors Regulatory bodies
Chairman Auditors
Chief Executive Officer Suppliers
Company Secretary Employees
Executive Management Creditors
Shareholders Customers
Community
STRUCTURE
FOUR PILLARS OF CORPORATE GOVERNANCE
BENEFITS OF GOOD CORPORATE GOVERNANCE
Increase in revenue. Increase in profitability. Increase in growth in market shares. Good governance provides stability and growth
to the company. Building brand image. Good governance system builds confidence
among investors. Good governance reduces perceived risks,
consequently reducing cost of capital. Well-governed companies enthuse employees
to acquire and develop company skills.
Satisfied stakeholders Shareholders Employees Suppliers Creditors Government
CORPORATE GOVERNANCE IN INDIA The issue of Corporate Governance has
come up mainly in the wake up economic reforms characterized by liberalization and deregulation.
In April 1998, Confederation of Indian Industries (CII) took issue of Corporate Governance Practices and made certain recommendations.
SEBI committee on Corporate Governance headed by Shri. Kumarmangalam Birla submitted its report in February 2000.
Clause 49 in Listing Agreement with stock exchanges was made mandatory by SEBI to include disclosures about Corporate Governance and its certification by Statutory Auditors in annual report of the company.
HARSHAD MEHTA- MAJOR CORPORATE CHEAT
REFERENCE http://www.enotes.com/homework-help/what-glob
alization-list-the-advantages-113501 http://en.wikipedia.org/wiki/Globalization http://
en.wikipedia.org/wiki/Corporate_governance Corporate Governance, Business Ethics and CSR - J.P Sharma