Name of student: Akshay ShettyBatch: 2014-16Section: BRoll number: 15313Project for – Corporate Governance

Section II

Answer 1

Since Swastik is India’s first Tile Company that believes in maintaining ethical standards and also its ethical behaviour being exemplary, the Corporate Credo laid down by Swastik makes it appear like an Ethical Organisation and an Pioneer in the Tiles Industry.

We classify Swastik to be an Ethical Organisation because it states its legal responsibility towards its Customers, Employees, Community and the Stockholders.

We also classify Swastik to be a Pioneer because it is the first company in the Tiles Industry to have come up with a Corporate Credo, hence laying a benchmark for other Companies in the same industry.

Answer 2

An Executive Director can be either a Whole-time Director of the company (i.e., one who devotes his whole time of working hours to the company and has a significant personal interest in the company as his source of income), or a Managing Director (i.e., one who is employed by the company as such and has substantial powers of management over the affairs of the company subject to the superintendence, direction and control of the Board).

Hence Mr. Goyal belongs to the category of Executive Director.

The role of the executive director is to design, develop and implement strategic plans for the organization in a cost-effective and time-efficient manner. The executive director is also responsible for the day-to-day operation of the organization, which includes managing committees and staff as well as developing business plans in collaboration with the board. In essence, the board grants the executive director the authority to run the organization.[citation needed The executive director is accountable to the chairman of the board of directors and reports to the board on a regular basis – quarterly, semi-annually, or annually. The board may offer suggestions and ideas about how to improve the organization, but the executive director decides whether or not, and how, to implement these ideas.

The executive director is a leadership role for an organization and often fulfils a motivational role in addition to office-based work. Executive directors motivate and mentor members, volunteers, and staff, and may chair meetings. The executive director leads the organization and develops its organizational culture.

As the title suggests, the executive director needs to be informed of everything that goes on in the organization.[citation needed] This includes staff, membership, budget, company assets, and all other company resources, to help make the best use of them and raise the organization's profitability and profile.