NAGINDAS

KHANDWALA
COLLEGE
 PRESENTED BY
SYBCOM
(FINANCIALMARKET
S)
 CREDITS

ANAM LAKHANI 320

 HIRAL RAVAL 333
 RICHA PATEL 325
 PRIYANKA KAPADIA 317
 VIKAS PATEL 331
 JAI PAREKH 328
GOOD
CORPORATE
GOVERNANCE
AND ETHICAL
BUSINESS
PRACTICES
 INTRODUCTION
Corporate governance is the set of processes,
customs, policies, laws, and institutions affecting
the way a corporation (or company) is directed,
administered or controlled.
 Definition
“Fundamental objective is the
enhancement of the long term
shareholder value while at the
same time protecting the
interests of all other
stakeholder” - SEBI
What is Good Corporate Governance ???

Good corporate governance is the glue that holds together

responsible business practices
Ensures positive workplace management,
and sustained financial performance
IT restores confidence and promote economic growth
Factors behind the Origin of Corporate
Governance
 In the era of globalization, foreign investors have
become very careful about investing their money.

 Kumar Mangalam Birla Committee Report appointed

by SEBI has formulated some guidelines.

 Increasing active rate of investigative reporting in

business journalism.

 Mergers and acquisitions taking place at a fast pace.

Need for corporate governance in India

 Financial scams

 Legal and administrative framework in

India provides for excellent scope for
current practices.
Corporate Governance

Transparency Accountability

Equanimity
 Factors in Corporate governance
 Transparency in decision making

 Accountability which follows from transparency

because responsibility could be fixed easily for
actions taken or not

 Equanimity is for safeguarding the interests of

the stakeholders and the investors in the
organization
 INTRODUCTION TO BUSINESS
ETHICS
 Is a form of Applied Ethics which
examines ethical principles & morals
in the light of Business Environment

 Increase in Conscience Focused

market places
 Ethical Business PracticES
 Ethical business practices can be adopted
by all businesses in order to improve
corporate citizenship, increase consumer
confidence and protect brand value

 Ethical business practices are an important

arm of corporate social responsibility

 Ethical business practices can help to

increase consumer confidence
 Production Methods and Ethical
Business Practices
 Ensure that the production
of a good or service is
environmentally
sustainable.
 Human beings involved in
the production, either as
workers or as members of
the community in which
production takes place are
not unduly harmed.
 Human Resources and Ethical
Business Practices
 Considering the impact
the work of the
business has on
employees and their
families.
 Reviewing pay scales
to ensure fairness and
providing access to
mechanisms that
enable family support
Ethical Business Practices and
Society
Business and society exist
in a mutually beneficial
relationship with business
providing goods and
services required by
society and the
environment and people in
the community providing
resources for business, in
terms of production
resources and financial
resources through
spending.
 Accounting Firm and ethical
business practices
 Transparency in
disclosure of accounts

 No frauds in accounts

 Role of accountants
 Ethical business and
INTERNATIONAL BUSINESS
No political exploitation
No false marketing of goods and services
No exploitation of employees
Environmental responsibilities