Corporate Governace (TY BBA 5th Practical Studies 2)
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Transcript of Corporate Governace (TY BBA 5th Practical Studies 2)
8/3/2019 Corporate Governace (TY BBA 5th Practical Studies 2)
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Group no: 11
Submitted to: Ms. Neelu Nakra
8/3/2019 Corporate Governace (TY BBA 5th Practical Studies 2)
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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