8/3/2019 Corporate Governace (TY BBA 5th Practical Studies 2)

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Group no: 11

Submitted to: Ms. Neelu Nakra 

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CORPORATE GOVERNANCE

Set of processes, customs, policies, lawsand institutions affecting the way acorporation is directed, administered, orcontrolled.

To ensure the accountability of certainindividuals in an organization throughmechanisms that try to reduce oreliminate the principal-agent problem.

Since 2001, particularly due to the high-profile collapses of a number of largeU.S. firms such as Enron Corporation

and WorldCom.

DEFINITION by:

Report of SEBI committee (India) 

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PRINCIPLES

Rights and equitable treatment of shareholders

Interests of other stakeholders

Role and responsibilities of the board

Integrity and ethical behaviour

Disclosure and transparency

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SYSTEMIC PROBLEMS OF CORPORATE GOVERNANCE

Supply of accounting information

Demand for information

Monitoring costs

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CASE STUDY ON

 ITC LTD.

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Governance StructureOf 

 ITC LTD. 

Board of Directors

 Audit Committee Compensationcommittee

NominationsCommittee

Investors ServiceCommittee

Corporate Management Committee

Divisional/Strategic BusinessUnit (SBU) Managementcommittees each headed by aDivisional/SBU chief executive… 

Business include FMCG, Hotels,Paperboards, Packaging, Agri.Business and IT… 

Corporate Functions each headed by aHOD… 

Corporate functions include: Planning& Treasury, Accounting, Legal,Secretarial, HR, CorporateCommunication & Affairs, InternalAudit, R & D… 

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The role of the Board of Directors is to provide direction and exercise control to 

ensure that the Company is managed in a manner that fulfils stakeholders’ aspirations and societal expectations.

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Stakeholder Engagement Shareholders

Employees

Customers

Suppliers

Community

Government

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ENVIROMENTAL PERFORMANCE  A ‘CARBON POSITIVE’ CORPORATION 2 YEARS IN A ROW  

Conserving energy through audit,benchmarking, and use of ‘next’ 

practices to achieve the energyrequired per unit of production.

Using renewable sources of energy.

Creating a positive environmental

footprint through forestry initiativesthat enable Carbon Dioxidesequestration.

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A ‘WATER POSITIVE’ CORPORATION 5 YEARS IN A ROW

WATER RESPONSIBLE

• Water Conservation

• Zero Wastewater Discharge • Creating a Positive Footprint 

TOWARDS A ‘ZERO SOLID WASTE’ CORPORATION 

More than 93% of all solid wastes recycled.167,913 tonnes of waste paper used as raw material byPaperboards business.

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SOCIAL PERFORMANCE LABOUR PRACTICES AND DECENT WORK

Our commitment to pay employees a

competitive remuneration is reflected in a15% compounded annual growth rate in

'employee costs' in the last 3 years.

During 2006-07,

Full time direct employees

numbered over 21,000 of which

nearly 2,100 employees in the Leaf 

Tobacco business were engaged on aseasonal basis due to the very nature

of the Leaf business.

Nearly 12,000 of the full time

direct employees are members of 

various unions.

During the reporting period, fourunits signed long-term agreements

with the recognised unions across

different businesses.

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Occupational Health & Safety

Towards Zero Accident

Safety standards in each of our units

are audited by Corporate EHS experts,

at least once a year to ensure

compliance to corporate guidelines andstandards.

ITC has been able to reduce

Injury Rate in 2006-07 by16.4%.

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We achieved 12.5% reduction in Lost Time Accidents in

2006-07 by a proactive risk management approach,

adoption of benchmarked practices, state-of-the art

engineering control measures, comprehensive fire safety

protection systems and best-in-class electrical, regular

training of employees and service providers and employeeinvolvement through suggestion schemes, celebration of 

safety events and other motivational programmes.

Accident Free Units

Injury Rate and Lost Day Rate

Occupational Health

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SOCIAL PERFORMANCE

• HIV/AIDS

•Human Rights: Significant Investments

•Human Rights: Supply Chain

During 2006-07, the total number of service providers’contracts was about 2,075 of which 460 operated within

the Company’s premises offering engagement

opportunities to over 5,000 people.

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A COMMITMENT BEYOND THE MARKET: ENLARGINGSOCIETAL CONTRIBUTION

Cigarettes business

Foods business

Greeting, Gifting and Stationery business

Hotels business

Paperboards and Specialty Papers

 Agri business

Leaf Tobacco business

Lifestyle Retailing business

Customer Safety - Their Prime Concern

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PREPARED BY:

Kalpesh Agrawal – 4

Sandip Borse – 17

Preyal Dalwadi – 27

Hardi Mehta - 58