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Corporate governance ppt mba


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Babasab Patil
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Published on Apr 3, 2012

Corporate governance ppt @ bec doms bagalkot mba BY BABASAB PATIL


Published in: Business, Economy & Finance
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Corporate governance ppt mba

1. 1. CORPORATE GOVERNANCECorporate Governance


2. 2. What is Corporate Governance ?Corporate Governance refers to the structures &
processesfor the efficient & proper direction & control of companies(both private and
public) in the interest of all stakeholders. stakeholders
3. 3. CORPORATE GOVERNANCE What is Corporate Governance ?- Is a concept; one
size does not fit all, HOWEVER:- Basic Principles of Corporate Governance: 
Accountability Rights of Shareholders  Transparency Interests of Stakeholders 
Fairness Good Faith Diligence  Integrity Trust Disclosure  Responsibility Controls
Commitment

4. 4. CORPORATE GOVERNANCE Corporate Governance Framework Governance


Principles Legal / Regulatory Codes of Best Practice Stakeholder Relations Self
Regulation Ethical Standards Risk Management
5. 5. CORPORATE GOVERNANCE Why Corporate Governance Matters• Enhances
performance of companies• Enhances access to capital• Enhances long term prosperity.•
Provides a barrier to corrupt dealings- limiting discretionary decision making, increasing
oversight, introducing Codes of Ethics etc• Impacts on the society as a whole: Better
companies, Better societies.
6. 6. CORPORATE GOVERNANCEGood Corporate Governance and GoodPublic
Governance are complementary“ The proper governance of companies will become as
crucialto the world economy as the proper governing of countries”. James Wolfensohn
President of WB, 1999
7. 7. CORPORATE GOVERNANCECorporate Governance-Channel of Growth &
Development Country level Sector level Individual firms
8. 8. CORPORATE GOVERNANCE Corporate Governance- Channel of Growth &
Development• Increases access to external financing leading to larger investment, high
growth & creation of more jobs• Better allocation of resources• Better management
creating wealth• Reduces the risk of financial crisis• Better relationship with all
stakeholders
9. 9. CORPORATE GOVERNANCE Corporate Governance- Principles for the Public
Sector• Generally derived from the private sector• Ensures public accountability•
Promotes responsive and accountable institutions• Good financial management of
resources• Good stewardship – – Responsibility to protect the wealth of the state and its
citizens
10. 10. CORPORATE GOVERNANCE Good Corporate Governance, Good Government &
Good Business go hand in hand• Good Governance by Host Country• Good Governance
by Private Sector• Good Governance by Investment Promotion Agencies• Good
Governance by Investors
11. 11. CORPORATE GOVERNANCE Good Governance by Host CountryTransparent,
stable and predictable investment climate:• Appropriate legislation to support investment•
Anti corruption measures• Effective , speedy and transparent resolution of disputes•
Forum for Investors• Capacity Building
12. 12. CORPORATE GOVERNANCE Good Governance by Private Sector• Institutional
Framework• Role of Board of Directors• Management• Risk factors• Transparency &
Disclosure• Reputation
13. 13. CORPORATE GOVERNANCE Good Governance by Investment Promotion
Agencies• Self Regulation• Transparency & Disclosure• Accountability• Commitment•
Sound and Clear Administrative Policies• Stakeholder engagement
14. 14. CORPORATE GOVERNANCE Good Governance by Foreign Investor• Good faith•
Business Integrity• Governance Policies• Human Capital• Corruption Practices
15. 15. CORPORATE GOVERNANCE Recommendations• Continued advocacy on the
benefits of Corporate Governance• Codes of Corporate Governance for countries•
Capacity building• Sourcing of funds to support Corporate Governance development.•
Every institution , every stakeholder should provide input into the corporate governance
agenda
16. 16. CORPORATE GOVERNANCEConclusion “ If a country does not have a reputation
for strong corporate governance practice, capital will flow elsewhere. If investors are not
confident with the level of disclosure, capital will flow elsewhere. If a country opts for
lax accounting and reporting standards, capital will flow elsewhere. All enterprises in that
country- regardless of how steadfast a particular company’s practices may be- suffer the
consequences. Markets exist by the grace of investors. And it is today’s more empowered
investors that will determine which companies and markets will stand the test of time and
endure the weight of greater competition. It serves us well to remember that no market
has a divine right to investors’ capital

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