Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
SlideShare a Scribd company logo

5_6293832053217561264.pptx

•Download as PPTX, PDF•
•
S
SUSMITABHATTACHARJEE15

This document outlines a presentation on corporate governance. It includes sections on the introduction to corporate governance, advantages and disadvantages of corporate governance, ethical aspects, critical analysis of stakeholder and agency theories, corporate culture, whistleblower protection, and a conclusion. The key topics covered are balancing stakeholder interests, transparency, fairness and accountability as pillars of strong corporate governance, enhanced performance and access to capital as advantages, and potential for corruption and monitoring costs as disadvantages.

1 of 15
Diya Sen Roll no: 50 Paper- 202 Sem:2nd Sem Department of Commerce Assam University, Silchar Corporate Governance
Presentation Outline  Introduction- Corporate Governance  Advantages of Corporate Governance  Disadvantages of Corporate Governance  Ethical Aspects of Corporate Governance  Critical Analysis of Stakeholders Theory  Critical Analysis of Agency Theory  Corporate Culture  Whistleblower Protection  Conclusion
INTRODUCTION Corporate governance is the system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of a company’s many stakeholders such as shareholders, management, customers ,suppliers, financiers, government and the community. Strong pillar of Corporate Governance Transparency Fairness Accountability
ADVANTAGES OF CORPORATE GOVERNANCE 1. ENHANCED PERFORMANCE 2. ACCESS TO CAPITAL
DISADVANTAGES OF CORPORATE GOVERNANCE 1. Easily Corruptible 2. Cost of Monitoring
Ethical Aspects of Corporate Governance Governing a business ethically is manifested through…. Board behaviour s Board structure s & process es The purpose, strategy & vision for the business Values & standard s Structures & procedure s for oversight & control
The figure shown above is illustrated below: 1.Board Behaviours: The board members carry out their duties in a way that reflects ethical values such as integrity, respect, fairness and honesty. 2.Board structures & processes: Which facilitate ethical behaviours,avoid unethical ones(such as unmanaged conflicts of interest) and ensure proper accountability-e.g appropriate board composition, committees, decision-making procedures.
3. The purpose, strategy & vision for the business: The board sets the purpose for the business and what the business stands for; its strategic decisions reflect the business’s core values. 4. Values & standards: The board articulates and ensures the implementation of the standards of behaviour it expects for business practice, the way business will be done and its role in society(including ethics programmes and CSR initatives) 5. Structures & procedures for oversight & control: Mechanisms of delegation and control are conducive to ethical business practice.
CRITICAL ANALYSIS OF STAKEHOLDERS THEORY Definition: Stakeholder theory suggests that shareholders, aka financial investors, are one of many groups a corporation or organization must serve. Under stakeholder theory, anyone that is affected by the organization or its workings in any way is considered a stakeholder, including employees, customers, suppliers, local communities, environmental groups, governmental groups,and more.Stakeholder theory holds that organizations and corporations should strive to do right by all these stakeholders and that in doing so, the organization will achieve true lasting success.Thus, stakeholder theory
Criticism:  Stakeholder theory focuses on all people who are or may be affected by the results or decisions of the entity. However, the view is majorly criticized, with the management focusing lower on the entity’s shareholders.  The shareholders have invested their money to maximize their returns. The administration is obliged to keep their interest in focus compared to others.
CRITICAL ANALYSIS OF AGENCY THEORY Definition: Agency theory is a concept that relates to a specific type of agency relationship that exists between the shareholders and directors/management of a company.The shareholders, true owners of the corporation, as principals, elect the executives to act and take decisions on their behalf.The aim is to represent the views of the owners and conduct operations in their interest.
Criticism: Throughout the relationship, there is a number of actions and decisions that are made by the agent on behalf of the principal.The same actions and decisions are what generates disagreements and conflict between the two parties.The main causes of agency problems: 1. When a conflict of interest arises between the principal and the agent. 2. When the agent is making decisions on behalf of the principal that is not in the best interest of each associated party.
CORPORATE CULTURE Corporate Culture refers to the beliefs and behaviors that determine how a company’s employees and management interact and handle outside business transcations. A company’s culture will be reflected in its dress code, business hours, office setup, employee benefits, turnover, hiring decisions, treatment of clients, client satisfaction and every other aspect of operations.For instance, corporate culture might be reflected in the way a corporation hires and promotes employees, or in its corporate mission statement.
WHISTLEBLOWER PROTECTION A whistleblower is a person, who could be an employee of a company,or a government agency, disclosing information to the public or some higher authority about any wrongdoing, which could be in the form of fraud, corruption, etc. Whistleblower protections are the protections provided to whistleblowers to enable them to come forward to report misconduct without fear of retribution or personal detriment.
CONCLUSION Thus, Corporate governance is the mechanism by which the agency problems of corporation stakeholders, including the shareholders, creditors, management , employees, consumers and the public at large are framed and sought to be resolved. It plays an important role for soothing governance of company.

More Related Content

5_6293832053217561264.pptx

  • 1. Diya Sen Roll no: 50 Paper- 202 Sem:2nd Sem Department of Commerce Assam University, Silchar Corporate Governance
  • 2. Presentation Outline  Introduction- Corporate Governance  Advantages of Corporate Governance  Disadvantages of Corporate Governance  Ethical Aspects of Corporate Governance  Critical Analysis of Stakeholders Theory  Critical Analysis of Agency Theory  Corporate Culture  Whistleblower Protection  Conclusion
  • 3. INTRODUCTION Corporate governance is the system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of a company’s many stakeholders such as shareholders, management, customers ,suppliers, financiers, government and the community. Strong pillar of Corporate Governance Transparency Fairness Accountability
  • 4. ADVANTAGES OF CORPORATE GOVERNANCE 1. ENHANCED PERFORMANCE 2. ACCESS TO CAPITAL
  • 5. DISADVANTAGES OF CORPORATE GOVERNANCE 1. Easily Corruptible 2. Cost of Monitoring
  • 6. Ethical Aspects of Corporate Governance Governing a business ethically is manifested through…. Board behaviour s Board structure s & process es The purpose, strategy & vision for the business Values & standard s Structures & procedure s for oversight & control
  • 7. The figure shown above is illustrated below: 1.Board Behaviours: The board members carry out their duties in a way that reflects ethical values such as integrity, respect, fairness and honesty. 2.Board structures & processes: Which facilitate ethical behaviours,avoid unethical ones(such as unmanaged conflicts of interest) and ensure proper accountability-e.g appropriate board composition, committees, decision-making procedures.
  • 8. 3. The purpose, strategy & vision for the business: The board sets the purpose for the business and what the business stands for; its strategic decisions reflect the business’s core values. 4. Values & standards: The board articulates and ensures the implementation of the standards of behaviour it expects for business practice, the way business will be done and its role in society(including ethics programmes and CSR initatives) 5. Structures & procedures for oversight & control: Mechanisms of delegation and control are conducive to ethical business practice.
  • 9. CRITICAL ANALYSIS OF STAKEHOLDERS THEORY Definition: Stakeholder theory suggests that shareholders, aka financial investors, are one of many groups a corporation or organization must serve. Under stakeholder theory, anyone that is affected by the organization or its workings in any way is considered a stakeholder, including employees, customers, suppliers, local communities, environmental groups, governmental groups,and more.Stakeholder theory holds that organizations and corporations should strive to do right by all these stakeholders and that in doing so, the organization will achieve true lasting success.Thus, stakeholder theory
  • 10. Criticism:  Stakeholder theory focuses on all people who are or may be affected by the results or decisions of the entity. However, the view is majorly criticized, with the management focusing lower on the entity’s shareholders.  The shareholders have invested their money to maximize their returns. The administration is obliged to keep their interest in focus compared to others.
  • 11. CRITICAL ANALYSIS OF AGENCY THEORY Definition: Agency theory is a concept that relates to a specific type of agency relationship that exists between the shareholders and directors/management of a company.The shareholders, true owners of the corporation, as principals, elect the executives to act and take decisions on their behalf.The aim is to represent the views of the owners and conduct operations in their interest.
  • 12. Criticism: Throughout the relationship, there is a number of actions and decisions that are made by the agent on behalf of the principal.The same actions and decisions are what generates disagreements and conflict between the two parties.The main causes of agency problems: 1. When a conflict of interest arises between the principal and the agent. 2. When the agent is making decisions on behalf of the principal that is not in the best interest of each associated party.
  • 13. CORPORATE CULTURE Corporate Culture refers to the beliefs and behaviors that determine how a company’s employees and management interact and handle outside business transcations. A company’s culture will be reflected in its dress code, business hours, office setup, employee benefits, turnover, hiring decisions, treatment of clients, client satisfaction and every other aspect of operations.For instance, corporate culture might be reflected in the way a corporation hires and promotes employees, or in its corporate mission statement.
  • 14. WHISTLEBLOWER PROTECTION A whistleblower is a person, who could be an employee of a company,or a government agency, disclosing information to the public or some higher authority about any wrongdoing, which could be in the form of fraud, corruption, etc. Whistleblower protections are the protections provided to whistleblowers to enable them to come forward to report misconduct without fear of retribution or personal detriment.
  • 15. CONCLUSION Thus, Corporate governance is the mechanism by which the agency problems of corporation stakeholders, including the shareholders, creditors, management , employees, consumers and the public at large are framed and sought to be resolved. It plays an important role for soothing governance of company.