Professional Documents
Culture Documents
Business Ethics and Corporate Social Responsibility
Business Ethics and Corporate Social Responsibility
Business Ethics and Corporate Social Responsibility
CORPORATE GOVERNANCE
AGENCY THEORY & ROLE OF CEO IN COMPANY.
GROUP MEMBERS
TEJAL SHINDE
BHAGYASHREE RODE ASHWINI NANAVARE SONIKA SINGH STEFFIE STEFHEN SWAPNAJA FAWADE JYOTI MUSALE.
fundamental objective of corporate governance is the enhancement of the longterm shareholder value while at the same time
Issue of guidelines Public interest advertisements Dealing with complaints of investors Investors education Investor surveys Disclosures by companies Code regarding takeovers
SECURITY EXCHANGE BOARD OF INDIA
INSIDER TRADING
WHISTLE BLOWING
INSIDER TRADING
participants.
WHISTLE BLOWING
It is an attempt by a member
or ex-member of an organization to disclose wrong doing in or by the organization. It is an action which takes place within the organization
Dealing with misconduct internally. Employees will be assured that they will not suffer relation.
Benefit to company.
It provides channels of communication to employees for responding to wrong doing in the organization.
Poor evaluations. Demotion. Outright dismissal. Blacklist whistle blowers so they cannot obtain jobs in the same industry. Suffer career disruption. Job dislocation Family face problems.
AGENCY THEORY
Agency theory is defined as the relationship between the principals such as shareholders and agents such as the company executives and managers
Agency relationship arise whenever one party delegates decision making authority or control over resources to another
Principal Agent relationships Principal : person delegating authority. Agent :person to whom authority is
delegated.
AGENCY PROBLEMS
Agent and principal may have different goals. Agents may pursue goals that are not in the best interest of their principals. Agent may take advantage of information asymmetries to maximize their interest at the
expense of principals.
It is difficult for principals to measure performance.
Disclosure and transparency Constantly improve Essentials to human progress To provide leadership Ensure continues improvement in quality Ensure succession plan