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