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CORPORATE

GOVERNANCE,
CORPORATE SOCIAL
RESPONSIBILITY AND
STAKEHOLDER
ANALYSIS

MICROSOFT
CORPORATION
Team Members
• Aksh Gill 1224108104
• Gaurav Saraogi 1224109126
• Hardik Shah 1224108129
• Mayukh Choudhary 1224108136
• Nikhil Gupta 1224108139
• Ravi Agarwal 1224108147
Message from
Microsoft’s Chairman
At Microsoft, success comes from our
passion for creating value—value for
customers, shareholders, and partners;
value for our employees and the
communities around the world where we
do business. Underlying our success is
an approach to corporate governance
that extends beyond simple compliance
with legal requirements. I believe that
corporate governance must provide a
framework for establishing a culture of
business integrity, accountability, and
Corporate governance at
Microsoft
• Purpose
– To establish and preserve management
accountability by appropriately distributing rights
and responsibilities
– To provide a structure to set and attain objectives
and monitor performance.
– To strengthen and safeguard their culture of
business integrity and responsible business
practices.
– To encourage the efficient use of resources, and to
require accountability for their stewardship of those
resources.
Corporate Governance
Guidelines
• Role of the Board
• Board Composition and Selection; Independent
Directors
• Board Meetings; Involvement of Senior
Management and Independent Advisors
• Communications with Shareholders
• Performance Evaluation; Succession Planning
• Compensation
• Committees
ROLE OF THE BOARD OF
DIRECTORS
• Through oversight, review, and counsel establishes
and promotes business and organizational objectives.
• Oversees the company's business affairs and
integrity.
• Works with management to determine the company's
mission and long-term strategy.
• Performs the annual CEO evaluation.
• Oversees CEO succession planning.
• Establishes internal controls over financial reporting.
• Assesses company risks and strategies for risk
mitigation.
Board Committees
• Five committees
• Audit Committee
– Oversees the work of the Company's financial reporting and
internal audit processes
• Compensation Committee
– Recommends to the Board the compensation of the CEO and other
executive officers.
• Governance and Nominating Committee
– Recommending to the Board individuals to be nominated as
directors & evaluates new candidates and current directors
• Finance Committee
– Monitors the present and future capital requirements and
opportunities
• Antitrust Compliance Committee
– Oversees the Company's compliance with the Final Judgment
entered by the Law Court.
CORPORATE GOVERNANCE
Corporate Social
Responsibility
Key Issues in CSR
• Less than 25% of IT companies have a clear strategy for CSR.
• Operational environment changed since the advent of the
Internet, but few have changed their attitude to CSR
• Only 1 in 6 IT companies support Internet access initiatives for
the disadvantaged.
• Most IT companies are scathing about the low level of
charitable contributions made by industry as a whole and the
IT sector in particular.
• Co’s consider charitable contributions to be a prime target for
spending cuts if there is a downturn in turnover and profits.
‘We recognise the need for a certain responsibility, all corporations have a
social responsibility.’
Marketing Manager, Integrated solutions supplier

‘Corporate social responsibility is above all a matter of the values, culture


and leadership of business.’
Patricia Hewitt, Secretary of State for Trade and Industry

‘It is awful to say but the time taken on charitable events is time that could
be taken in promoting the company.’
Corporate Manager, software manufacturer

‘Right across the world companies are recognising the clear business
benefits of adopting a socially responsible approach.’
Douglas Alexander, Minister of State for e-Commerce and Competitiveness

‘I have such a strong brief not to contribute to charitable donations.’


PR Manager, IT solutions provider

‘Microsoft recognises the importance of corporate social responsibility to


business competitiveness.’
Oliver Roll, Director of Marketing, Microsoft
What Microsoft has done
for the society
• Health Care : Created a Health Solutions Group to focus on the
development of products and solutions specifically to improve the
health delivery system. Community technology Centers

• Education
– Provided more than US$350 million in cash and software grants to more
than 1,000 community partners
– Supported over 40,000 technology centres in more than 100
countries/region
– Operate CTCs which are found in various locations, from remote villages to
major metropolitan areas.
– Free or low-cost access to resources that enable them to learn about
computers, use the Internet, explore new careers, further their education,
participate in community activities, and develop job-related technology
skills.

• Energy and Environment


– Launched a free online application called MicrosoftHohm™ that helps
consumers analyze where energy is being consumed in the household
– Made a Software that helps scientists to search for a perfect cleaner energy
sources.
Partnership and Various
work for the society
• Partnership with Boys & Girls Club
• Partnership with Aide et Action,CAP foundation
and Mahila Sewa Trust in India
• In 2005, when Hurricane Katrina hit the Gulf
Coast of the United States, Microsoft worked
with the American Red Cross to create the Web
site, Katrinasafe.org, now known as Safe and
Well.
• Partnership with United Nations High
Commissioner for Refugees
STAKEHOLDER ANALYSIS
What Is Stakeholder
Analysis?
• Stakeholder analysis is a process of
systematically gathering and analyzing
qualitative information to determine
whose interests should be taken into
account when developing and/or
implementing a policy or program.

• STAKEHOLDERS
What Are the Steps in
Stakeholder Analysis?
• There are 3 major steps in the
process:
– Identifying Your Stakeholders
– Prioritize Your Stakeholders
– Understanding your key
stakeholders
Microsoft’s Stakeholders
Prioritizing the
stakeholders
BOD,
Executives
Government and
Employees

Customers,
Suppliers,
Civil Society Partners and
Competitors
Understanding Key
Stakeholders
• Employees – provide variety of resources to
help them balance work and home life,
– Referral services,
– Generous maternity and parental leave
allowances, and
– Flexible work arrangements, such as part-time
and telecommuting,
– For eg. The Microsoft Employee Giving
Campaign, The annual United Way Loaned
Executive Program
• Vendors - The Microsoft Vendor
Program, The Microsoft Master
Vendor Agreement (MMVA),
–  The objective is to make working with
Microsoft beneficial to all.

• Customers and Partners - Ensuring


a high level of satisfaction among our
customers and partners is a core
component of Microsoft through
Customer Partner Experience.
• Government
–  Microsoft partners with governments, to
nurture an environment where
opportunity and growth can flourish
through
• Innovation & Research
• Technology for development
• IP Incentives
• Technology infrastructure
• Global IT Market
• Attracting Global Talent
• Civil Society
• Microsoft is committed to helping NGOs
unleash technology to advance social
and economic development.
• Their strategy is built around
– Ensuring NGO access to stable and more
secure technology,
– Optimizing the delivery of IT solutions, and
– Helping them transform their operations
through the innovative and appropriate use
of technology.

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