THE GREAT INDIAN CORPORATE GOVERNANCE SAGAIMPORTANCE OF TRUST

“Try not to become a success but rather try to become a man of value.”
-Albert Einstein

BY: ( sowieee cant mention the name)

PARIDRASHYA
Overview of Corporate Governance

CORPORATE GOVERNANCE
“Study of distribution of rights and responsibilities among participants in the corporation…..”
CG advocates : • transparency • accountability in the system

TRUST + CORPORATE GOVERNANCE= CORPORATE EXCELLENCE
To trust is to believe despite uncertainty concerning another’s action
“Asymmetry of knowledge”

What are the factors that build trust? Courage Reliability competency Consistency Integrity Respect Acceptance Fairness Character Openness

The seven deadly sins according to Mahatma Gandhi are
wealth without work; pleasure without conscience; knowledge without character; business without morality(ethics); science without humanity; religion without sacrifice; politics without principle.

Advantages of being trusted
Capital resources can be raised easily To revive economic health of corporation Welfare of the society Projects good corporate image Fosters brand equity In case of crisis co. can bail out itself by the help of other parties like Govt.

PRESENT SITUATION: EROSION OF TRUST WORLDWIDE

ohh…I’m worried!!!!!

“All relationships are trust relationships….. Trust depends upon integrity. Crisis in trust really means crisis in truth”
- Shiv Khera, (You Can Win)

 The turn of the millennium witnessed mammoth bankruptcies, accounting scandals and obstruction of justice allegations e.g.:
The recent arrest of Bernard L. Madoff, accused of milking thousands of investors Enron, WorldCom, Xerox, Arthur Andersen, Kodak, AIG and Bear Stearns, Lehman

 India’s current stand: A lack of trust in regulators following scams unearthed in the Indian stock markets:
More recently, the massive accounting fraud at India’s Satyam Computers Recent tragedy with ICICI bank: Rumor of bankruptcy through cell phone Networks

The need of the hour: revival of trust
“our task now is not to fix the blame for the past, but fix the course for the future.”
-John F. Kennedy

1. SEBI, to enhance measures of corporate governance excellence in India; which are 2. Adherence to ethical behavior 3. Fulfillment of CSR 4. Honesty is the best policy 5. Respect- give & take relation 6. Follow the global village concept 7. Follow the mool mantra> “integrity must be sustained” 8. Optimism of value grid 9. Intelligence crockery 10. Social balance sheet 11. Indian management services should be initiated.

The Bhagwat Gita in verse 16-24 says:
“Tsmachastrnm pramanam te karyakarvavyasthitao, Gyatva shastravidhanoktam karm kurtumihahirsi.”

Diw ali.exe

TRUST IN INDIA THROUGH RESPECT

TRUST IN INDIA THROUGH RESPECT
“Trust is the first thing we look for when doing anything.”
Respect:- an aggregation of two broad parts of companies deliverables
-N.R.NARAYANMURTHY (Chairman of Infosys tech. the most respected co. in 2003 survey)

Quantitative (like profitability) Qualitative (like community responsibility)

who gets the respect????????

Trust Through CSR in India

Trust Through CSR in India….
CSR- effective tool for gaining mindshare of the stakeholders that flourishes:Better Financial Performance Reduction in Operating Costs Boost in Brand Image and Reputation Increased Sales and Customer Loyalty Higher Productivity and Quality Attract and Retain Employees Reduced Regulatory Oversight

Some renowned leaders are:
Tata Group: CSR programs including rural community and tribal
development, etc &committed to maintain highest standards of CG in dealing with stakeholders

Birla group: runs 15 hospitals & 78 schools all over India & provides adult
education & rehabilitates handicapped persons having reached more than 5,000 physically challenged individuals

The public relations link + trust

The public relations link + trust:
“The social face of an organization”

„Bhagavad-Gita‟ extends into the role of business in this society, breaking across the barriers of culture, religion and language drives stakeholder relationships through multiple platforms, transforming their websites, issuing reports and signing up to speak on conference panels. Well-advised multinationals operating on Indian soil like: Ford India and Mac‟D,

“For evil to flourish, good people have to do nothing and evil shall flourish”.
--Edmund Burke

Concluding reflections…

Lessons From The Vedas:
“It may be stressed that corporate governance is not merely about enacting a legislation, but establishing an ultimate bond of trust & confidence.”

Loka sangraha: public good…. greatest possible good for all.
“Sarve sukhina bhawantu”
Kaushalam (competence) & Utpadakta (productivity)

Dhanam: creation of wealth through

“You can’t build the character & courage by taking away man’s initiative and independence.” -Abraham Lincoln.

Swatantrata: autonomy & independence in business decisions

Contd…..
Vishavstata: faith….. implying that mgmt is a trustee of stakeholders. Dharmudh: fair battle..... providing a level playing field to all, thus
ensuring fair competition.
Life is like a ten speed bicycle. Most of us have gear that we never use.- Charles Schultz

Vividhta: innovation…..variety & innovation ensuring flexibility in
approach.
Everyone who’s ever taken a shower has an idea. It’s the person who gets out, dries off, & does something about it who makes a difference.

Dharma: right path…..which we’ll uphold family, org. & social fabric.
A duty which becomes a desire will ultimately become a delight. - George Gritter

To Define the importance of trust, Manu says:
“akasmay kriya kaschdrishayate neh kahinchit, yadvati kurute kinchhit tattkamasse chestitam” “dharma aev hato hanti dharmo rakshati rakshita, tasmadharmo na hantavyo ma na dharmo hatovidhit”

Diw ali.exe

HOW DO WE JUDGE OUR VALUE SYSTEM?

The “Mama Test” The “Baba Test”

“Many of the great achievements of the world were accomplished by tired and discouraged men who kept on working.”

Then is it tough to win the trust of your own people(stakeholders)…..???????

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BEST OF LUCK TO ALL OTHER PARTICIPANTS

Have a smiling day ahead…. 