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Cultural Environment

Corporate Governance
And CSR
CULTURAL ENVIRONMENT

A cultural environment is a set of beliefs,


practices, customs and behaviors that are
found to be common to everyone that is
living within a certain population. Cultural
environments shape the way that every
person develops, influencing ideologies
and personalities.
CORPORATE GOVERNANCE

Corporate governance is the system of rules, practices and

processes by which a firm is directed and controlled.

It is the collection of mechanisms, processes and relations by

which corporations are controlled and directed.


Corporate governance essentially involves balancing the
interests of a company's many stakeholders, such as
shareholders, management, customers, suppliers, financiers,
government and the community.
Culture on Corporate Governance

• Corporate governance plays an important role in creating a sound


relationship between managers, shareholders, board of directors and
other stakeholders.
• There are various studies to explore the relationships between
national culture and corporate governance. The culture influences
the organizational policies through the values held by decision
makers.
CORPORATE GOVERNANCE PRINCIPLES

• Accountability: The Code provides for accountability of the


Company's Board of Directors to all shareholders in accordance with
applicable law and provides guidance to the Board of Directors in
making decisions and monitoring the activities of the executive
bodies.

• Fairness: The Company undertakes to protect shareholders' rights


and ensure equal treatment of shareholders. The Board of Directors
shall give all shareholders the opportunity to obtain effective redress
for violations of their rights.
• Transparency:The Company shall provide timely, accurate disclosure
of information about all material facts relating to its activities,
including its financial situation, social and environmental indicators,
performance, ownership structure and governance of the Company,
as well as free access to such information for all stakeholders.

• Responsibility: The Company recognizes the rights of all interested


parties permitted by applicable law, and seeks to cooperate with such
persons or companies for their own development and financial
stability.
CORPORATE SOCIAL RESPONSIBILITY

• Corporate social responsibility (CSR) is a business approach that


contributes to sustainable development by delivering
economic, social and environmental benefits for all stakeholders. CSR
is a concept with many definitions and practices.
TYPES OF CSR

• Environmental Sustainability Initiatives

• Direct Philanthropic Giving

• Ethical Business Practices

• Focus on Economic Responsibility


BENEFITS OF CSR

• The ability to have positive impact in the community

• It supports public value outcomes

• It supports being an employer of choice

• It encourages both professional and personal development

• It enhances relationships with clients


THE IMPACT OF CULTURE ON CORPORATE
GOVERNANCE AND CSR

• Sustainable development of all stake holders


to ensure growth of all individuals associated with or effected by
the enterprise on sustainable basis
• Effective management and distribution of wealth
to ensue that enterprise creates maximum wealth and judiciously
uses the wealth so created for providing maximum benefits to all
stake holders and enhancing its wealth creation capabilities to
maintain sustainability
• Discharge of social responsibility
to ensure that enterprise is acceptable to the society in which it is
functioning
• Application of best management practices
to ensure excellence in functioning of enterprise and optimum
creation of wealth on sustainable basis
• Compliance of law in letter & spirit
to ensure value enhancement for all stakeholders guaranteed by the
law for maintaining socio-economic balance
• Adherence to ethical standards
to ensure integrity, transparency, independence and accountability in
dealings with all stakeholders