Report on corporate governance with details of pakistans efforts towards developing its Corporate Governance Profile, aswell as brief discussion of cases related to corporate governance
corporate governanceFull description
Corporate Governance Regime
etika bisnis pertemuan 9Full description
Business Ethic
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Corporate Governance of BMW GroupFull description
Taxation law in india is a wide example og governance system in india.Full description
corporate governance
Prinsip OECD
This compact and concise text, now in its third edition, continues to give a clear analysis of the principles and practices of corporate governance—the corporate governance practices prevalent in I...
Corporate governance has ensured greater assurance in the light of increased globalisation, tougher regulations and heightened shareholder activism, etc.More or less every country has its ow…Full description
ACCA
tata kelola perusahaan
Corporate Governance Corporate governance is the way in which a company is governed and led. JSW suggest suggest that a governance governance framework framework determines: determines: • •
Whom the organization is there to serve, and How the purposes and priorities of the organization should be decided.
The need for corporate Governance •
•
The gap between between owners and and management can can be large and and agents might might not know what the beneciaries want. Self interest can cause agents to work for their own benets at the epense of their principal !remuneration package" share options" short termism to make current look good at the epense of long term prot#
Contents of Corporate $overnanc $ overnance e • • • •
%ccountability towards shareholders Compliance with all laws and regulations Transpar Transparency ency in nancial information information &ntegrity by taking ethical actions and decisions
Corporate $overnance is ensured by: • • •
'egulators through relevant laws" e.g. Company (aw" Ta (aw etc. )ternal auditors and independent reviews. &%Ss" Codes of corporate $overnance $overnance e.g. Code of conduct" %udit" committees" role of *+," Chairman- C)+s" ),s#
&mportance of Corporate $overnance $overnance • •
• • •
*uild investors and shareholders/ condence ,emonstrate organisation/s organisation/s commitment to being ethical" e0ective and e1cient 2rovides a system of check and balance. $reater pressure on *oard to formulate strategies. 2rotection of all stakeholders/ interest.
Chapter 3
4
)thics The ethical standards of a business are a key factor in how that business is dened. % business5s reputation impacts its customers" employees" potential for growth and overall success. % business organi6ation that eemplies integrity in its products" services and actions holds itself up to high ethical standards. *usiness )thics is the application of ethics at three levels.
Macro Level At a macro level, sometimes ethics are defined an d influenced by the wider operating environment in which the company exists. actors such as political pressures, economic conditions, societal attitudes to certain businesses, and even business regulation can influence a company!s operating standards and policies. "usiness owners and managers must be aware of how these pressures affect operations and relationships, and how they may impact on mar#ets locally, nationally and internationally. $orporate %evel %t a company or corporate level" ethical standards are embedded in the policies and procedures of the organi6ation" and form an important foundation on which business strategy is built. These policies derive from the in7uences felt at macro level and therefore help a business to respond to changing pressures in the most e0ective way. There can be a gap between the company policy on ethical standards and the conduct of those in charge of running the business" especially if they are not the direct owners" which can present an ethical challenge for some employees. &ndividual (evel
&ince businesses are run by people, the ethical standards of individuals in the business are an important consideration. 'ndividuals may well have a very different set of ethical standards from their employer and this can lead to tensions. actors such as peer pressure, personal financial position, and socio(economic status all may influence individual ethical standards. )anagers and business owners should be aware of this to manage potential conflicts. &ntegrated %pproach
*thical standards flow through the entire structure of a business organization, shaping how it plans its strategy, deals with customers, and manages its wor#force. The standards have a reach far beyond day(to(day operations, and should be considered in all aspects of a business, from the boardroom to the shop floor and across all functional areas. &upporting this effort, businesses that genuinely understand the value and importance of ethics have appropriate metrics in place to measure achievement and identify problems before they become ma+or issues. Chapter 3
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*thical &tance An organisations ethical stance is the extent to which it will exceed its minimum obligations to shareholders. There are four typical ethical stances&hort term shareholder interest %ong term shareholder interest )ultiple sta#eholder obligations &haper of society "enefits of an organization being ethical Apart from an ethical organization being morally correct, there are other uantifiable business benefits•
Attractive to customers
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Attractive to potential employees
•
Attractive to investors and partners
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%ess time and cost spend dealing with investigations by regulators
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%ess spent on paying damages and fees
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$an be a way to achieve competitive advantage.
$orporate &ocial /esponsibility $ommon areas for $&/ issuesollowing are common areas where business get involved in $&/ issues• • • • • •
Wor# creating and training programs &ponsorship of the arts and sports *mployee welfare programs $ommunity welfare programs &upport for educational institutes and lin#s with business $ontributions to overseas aid
Chapter 3
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*nvironmental programs
$ulture $ulture is a set of values, guiding beliefs, und erstandings and ways of thin#ing that are shared by the members of an organization and is taught to new members as correct. $ulture is a way we do things around here 0$harles Handy1 $ultural web 2eveloped by Gerry 3ohnson to explain why firm fail to ad+ust to environmental change as uic#ly as they need to. This is due to 4aradigm0shared mindset1 developed around six inter( related elements-