Professional Documents
Culture Documents
BE Week 2
BE Week 2
RESPONSIBILTY AND
CORPORATE GOVERNANCE
Dhaarna Rathore
Learning Objectives
Responsibilities of Business
Ackermans stages of SR
Ackermans Three Stages of Social Responsibility
ORGANIZATIONAL
LEVEL
Chief Executive
Obtain knowledge
obligation
Obtain
Add staff specialists
organisational
Action:Write and
communicate policy
Outcome:Enriched
purpose, increased
awareness
Issue:Technical
Staff Specialists
commitment.
Change
performance
expectations.
Provoke response
problem
from
operating units.
Action:Design data
Apply data system to
groundwork
Issue:Management
problem
Action:Commit
resources and
Model of CSR
Rejection
Adversary
Resistance
Compliance
Accommodation
Production
* Profit maximisation
* Society has to pay the cost
* Lack of social skills
* Business has power
* Social overhead cost
* Lack of accountability
* Lack of broad support
* Experts views
Reliance Industries
Jaiprakash Associates
Infosys
Ambuja Cements
HPCL
Total
2007
36
16
14
8
7
206
2004
2005
2006
38
9
21
5
21
385
26
17
15
15
11
314
27
26
21
16
15
411
Corporate Accountability
Enforced
by Law
1912
1915
1917
1919
1920
1920
1920
1948
1948
1948
1947
1948
1952
1924
Training of Apprentices
Maternity Benefit
Profit-Sharing Bonus
Gratuity
1921
1928
1934
1937
1961
1961
1965
1972
Legal Measures
Factories Act
ESI Act
Factories Act
Industrial Disputes Act
Factories Act
Employees P.F.Act
Workmens
Compensation Act
Apprentices Act
Maternity Benefit Act
Payment of Bonus Act
Gratuity Act
Stuck to the basics and produced only high quality goods and services for
specific
market niches.
Developed a public image that emphasised their commitment to quality and
often
used non-traditional means to promote it.
Firmly practised the dual principles of self-management and decentralisation.
Brought in outside people to provide needed talent and additional
perspectives.
Encouraged all employees to become part of the shared mission through full
worker
participation in decisions.
Paid fairly and usually offered benefit packages exceeding the competition.
Emphasised a democratic people orientation and did without executive perks.
Constantly solicited feedback from customers on all subjects from product
direction to corporate donations.
Top managers possessed an extensive knowledge of current events and took
a
wide-ranging interest in affairs outside their business.
Offered donations in cash or services to people in need of help.
Took an active role in the operations of their local communities.
Deal with like-minded businesses and encourage their employees to do the
same.
Constantly look to the future but always pay attention to the past.
CORPORATE GOVERNANCE
Dhaarna Rathore
Learning Objective
Ownership structure
Structure of company boards
Financial structure
Institutional Environment
Roll of Honour
Rankings
1 Infosys Technologies
2 Tata Steels
3 Wipro
4 HDFC Bank
5 HDFC
6 Tata Motors
7 Reliance Industries
8 ITC
9 Ranbaxy Laboratories
10 Hindustan Lever
Applicability: The recommendations will apply to all the listed private and public
sector companies, in accordance with the schedule of implementation. This is a
mandatory recommendation.
Thank You