You are on page 1of 3

Name of student: Akshay Shetty

Batch: 2014-16
Section: B
Roll number: 15313
Project for Corporate Governance

Section II

Answer 1
Since Swastik is Indias first Tile Company that believes in maintaining ethical standards and
also its ethical behaviour being exemplary, the Corporate Credo laid down by Swastik makes
it appear like an Ethical Organisation and an Pioneer in the Tiles Industry.
We classify Swastik to be an Ethical Organisation because it states its legal responsibility
towards its Customers, Employees, Community and the Stockholders.
We also classify Swastik to be a Pioneer because it is the first company in the Tiles Industry
to have come up with a Corporate Credo, hence laying a benchmark for other Companies in
the same industry.
Answer 2
An Executive Director can be either a Whole-time Director of the company (i.e., one who
devotes his whole time of working hours to the company and has a significant personal
interest in the company as his source of income), or a Managing Director (i.e., one who is
employed by the company as such and has substantial powers of management over the affairs
of the company subject to the superintendence, direction and control of the Board).
Hence Mr. Goyal belongs to the category of Executive Director.
The role of the executive director is to design, develop and implement strategic plans for the
organization in a cost-effective and time-efficient manner. The executive director is also
responsible for the day-to-day operation of the organization, which includes managing
committees and staff as well as developing business plans in collaboration with the board. In
essence, the board grants the executive director the authority to run the organization.[citation
needed The executive director is accountable to the chairman of the board of directors and
reports to the board on a regular basis quarterly, semi-annually, or annually. The board may
offer suggestions and ideas about how to improve the organization, but the executive director
decides whether or not, and how, to implement these ideas.
The executive director is a leadership role for an organization and often fulfils a motivational
role in addition to office-based work. Executive directors motivate and mentor members,
volunteers, and staff, and may chair meetings. The executive director leads the organization
and develops its organizational culture.
As the title suggests, the executive director needs to be informed of everything that goes on in
the organization.[citation needed] This includes staff, membership, budget, company assets,
and all other company resources, to help make the best use of them and raise the
organization's profitability and profile.