Chp :13

External Influences
on a Company
Governance
 ▪ Regularity, Planning & Promotional role of

KEY TERMS Government

▪ SECP & its Divisions
▪ Media & its Types
▪ The role of Media in Corporate Governance
▪ Functions of Media
▪ Reputational Risk
▪ Shades of Reputation
Group Members ▪ Ethics of Media
Areeba Naeem
▪ Pressure Groups
Fahad Qamar
Sami Iftikhar
Awais Ahmad
Manan Shahnawaz
Muneeb Ahmad
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External Factors
Those factors outside a
business that will have an
impact on its success.
Press
Government,
Television
Stock Exchange, SECP
Radio
Chamber of Commerce
Newspapers

Trade/Investors Groups
NGOs
Consumers Group

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Government
Role
Promotional Planning
Planning Role Role Role

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Regularity Role
Government  Required Special Persmission
Carry Out a business.
Role  Providing finance & capital to
industries.
 To use public facilities or
resources.
 For Example License reuired
for doing business in
Health,Energy sector etc.
 Government control &
monitor regularity biodies like
SECP,Commission Etc
 To encourages small business.
 Imposed Acts,Law,taxes
Promotional Role Planinng Role
 Giving platform to  Government make different
people. polices for business sectors
 Giving business
 Like Public Policy
 Economy Policy
environment.
 Industrial Polices.
 Business Incentives,
 Tax & Law Polices.
 Like Tax Relief.  Govt make planning To
 Giving Facilities like generate Employment
 .For achieving Objectives.
to carry the business
 Development Plans.
more efficiently.
 Planning for its resources.
 Like Good Roads.
 Industrial Areas
 Airports & Railways
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The Government & the
Business
1. What do Companies Expect from
Government?

2. What do Government Expect from

Companies?

Fahad Qammar

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What do Companies Expect from Government What do Government Expect from Companies?

- Companies follows that laws

• Investments for profitable business.
- Companies pay the taxes
• License ,Permissions.
- Companies conducting their business fairly & ethically

• Laws for the safety of the Business - Pay attention to corporate social responsibility

- Businesses help the government in making polices by

• Security to Business
providing information.
• Tax Incentives
- Business help the government by completing their projects .

• Promote investment in Locally & Internationally

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 What do SECP do?
▪ Regulation Of Corporate Sectors.
▪ Supervision of corporate sectors.
▪ Oversight.
▪ Registration of companies.
▪ Acts of companies
▪ Companies Law Divisions
▪ Securities Division
▪ Legal Affairs

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 SECP
“
The Securities & Exchange Commission of Pakistan is the financial
regulatory agency in Pakistan whose objective is to develop a modern and
efficient corporate sector and a capital market based on sound authority
principles, in order to encourage investment and foster economic growth
and prosperity in Pakistan.

Sami Iftikhar 9
 VISION
SECP MISSION Development of modern & efficient corporate sector based on regularity principles for
& VISION high economy growth in the country
MISSION:
To develop a fair, efficient and transparent regulatory framework, based on international
legal standards and best practices, for the protection of investors and mitigation of
systemic risk aimed at fostering growth of a robust corporate sector and broad based
capital market in Pakistan.
VALUES

ACOUNTIBILIT
INTEGRITY Y
DISIPLINE

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SECP ▪ Companies Law

Divisions Companies Registration

▪ Security Market
deals with stock Exchange
▪ Specialized Companies
Deals with financial insinuations like NBFIs ,Modarbas ,Mutual Funds, Pension Funds
▪ Insurance Division
Deals with oversight & regulations of Insurance Companies
▪ Laws
▪ Various Laws like Companies Law that relates with different business.

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 Professional Associates are charted accountants,Enginners
They have a direct & indirect impact that how companies
Professional run their board.
Associates ▪ Auditors examines financial statements
for accuracy
▪ Examines financial statements for
compliance with laws and regulations
▪ Computes taxes owed, prepares tax
returns
▪ Make sure taxes are paid properly and
on time
▪ Inspects account books and accounting Black
systems for efficiency
Is the color of ebony and of outer space. It
▪ Organizes and maintains financial has been the symbolic color of elegance,
records solemnity and authority.
▪ Suggests ways to reduce costs, enhance
Muneeb Ahmed revenues, and improve profits

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MEDIA
Press
Television
Radio

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 COMMENTRY REORTING
(NEWS) (Events)
MEDIA TYPES

MEDIA

COMPAiGNS ADVERTISEMENTS

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 • Media can drive the attention of proples from politics to corporate
THE ROLE OF
laws.
MEDIA IN
• Media can drive the attention of the peoples on board of directors of
CORPORATE
companies so they can behave more carefully and fairly in the affairs
GOVERNANCE of companies.

• Media can affect the image of the company in the eye of society. It will
increase the productivity of the company.

• A company public image has direct impact on compny cost and its
capital.

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Functions of 1 Reporting's on Facts.
▪ To stop the bad corporate practices.
Media
▪ To Encourage the good corporate behavior
2. Awareness Campaigns.
Companies can help media in social welfare campaigns like
▪ Awards schemes for business
▪ Social Campaigns
3. Advertisement
Media can defuse to publish dishonest advertisement.
Advertisement about business & Jobs & employment.

Awais Ahmed

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 ▪ Media Should Be Independent.

ETHICS OF ▪ Media refuse to dishonest advertisement

MEDIA ▪ Avoid Dishonest & Unfair statement

▪ Media should have its own CSR Policy.

▪ Media should maintain its moral values

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 The greatest risk to a company comes from the media
Good Reputation takes years to build.
Media &
Reputational ▪ Shades Of Reputation
Risk Shades of reputation belongs with,
1. Company Products
▪ A company with good reputation can sell its products easily
▪ Its able to attract more employees & Traders.
▪ Easiest & more efficient access to capital
2. Company Management
Company good reputation attract more efficient employees.
3. Company Profit
▪ More investors attract with company.
▪ Good dealing with regularity bodies & pressure groups
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PRESSURE
GROUPS
Investors Consumers
NGOs Groups
Groups

Manan Shahnawaz

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 1. Consumers Group
•  a set of consumers
• a couple of common users
• shared interests

2. NGOS
▪ non-governmental organization
▪  social mission group
▪ operates independently
▪ Non profit Organization

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3. Investors Groups
▪ a number of investors working together
▪ to buy a business
▪ to start a business.
▪ They Invest for profit

4. Trade Union
▪ an organization of workers
▪ to achieve common goals
▪ protecting the integrity of their trade
▪ improving safety
▪ For better wages

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