CORPORATE GOVERNANCE,CORPORATE SOCIALRESPONSIBILITY, BRAND EQUITY

Under the guidance of Prof. SN Ghosh

PREPARED BY Rollno. 41 40 63 44 20 Name Pradipna lodh Pradeep kumar narediya Yogendar singh tomar Rajkumar singh Dharmendar kumar pathak Section SE-1 Group No. 6 Signature

IIPM IIPM TOWER,SATBARI, CHANDANHAULA,CHATTARPUR-BHATIMINESROAD NEW DELHI

ACKNOWLEDGEMENT We thank Mr.Somun Ghosh in particular for assigning us this topic and encouraging us to write in the first place.We owe to Mr. Somun Ghosh for his valuable comments.

We are indebted to all those who have been helpful through out the process of writing this report -Mr.Rajkumar Singh,Dharmendar Kumar Pathak,Yogendra Singh Tomar,Predeep Kumar naredia But as the clich goes,we are solely responsible for any remaining errors of fact or judgement.

Signature of group members

(Mr.Pradipna lodh) (Mr.Pradeep kumar narediya) (Mr.Rajkumar Singh) (Mr.Yogendar singh )

(Mr.Dharmendar kumar pathak)

CONTENTS

Acknowledgement 1.Summary 2.Introduction 3.Corporate Governance in India (a) Corporate Governance Report of Reliance Industries Ltd 4.Corporate Social Responsibility (a)Case study on corporate social responsibility of Cocacola 5.Brand Equity 6.Conclusion and references 4 5 6 7 8 9 10 13

SUMMARY

This assignment deals with the topics of Corporate Governance,Corporate Social Responsibility and Brand Equity respectively.Today, in any business this 3 factors play a very vital role in shaping up the business properly.Thus it helps us to get a thorough Knowledge of the mentioned three topics thoroughly and briefly.

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(Mr.Pradipna lodh) (Mr.Pradeep kumar narediya) (Mr.Rajkumar Singh) (Mr.Yogendar singh )

(Mr.Dharmendar kumar pathak)

INTRODUCTION

Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled. Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. The principal stakeholders are the shareholders, the board of directors, employees, customers, creditors, suppliers, and the community at large. Corporate Social Responsibility-the name conjures up different images for different people.In a world that is becoming more and more jargonized.Businessman run and flourish primarily because of great ideas,combined with excellent execution.Through out the last century the primary focus of business has been to reward shareholders through higher profit.CSR is the continuing commitment by business to behave ethically and contribute to economic development. Brand equity refers to the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name . And, at the root of these marketing effects is consumers' knowledge. In other words, consumers' knowledge about a brand makes manufacturers/advertisers respond differently or adopt appropriately adept measures for the marketing of the brand . The study of brand equity is increasingly popular as some marketing researchers have concluded that brands are one of the most valuable assets that a company has. Brand equity is one of the factors which can increase the financial value of a brand to the brand owner, although not the only one.

Signature of group members

(Mr.Pradipna lodh) (Mr.Pradeep kumar narediya) (Mr.Rajkumar Singh) (Mr.Yogendar singh )

(Mr.Dharmendar kumar pathak)

CORPORATE GOVERNANCE IN INDIA

Although corporate governance still remains an ambiguous and misunderstood phrase,three aspects are becoming evident. First,there is no unique structure of corporate governance in the developed world;nor is one particular type unambiguously better than others.Thus one cannot design a code of corporate governance for Indian companies by mechanically importing one form or another. Second,Indian companies,banks and financial institutions can no longer afford to ignore better corporate practices.As India gets integrated in the world market,Indian as well as international investors will demand greater disclosure,more transparent explanations for major decisions and better corporate value. Third,corporate governance goes far behind company law.The quantity,quality and frequency of financial and managerial disclosure,the extent to which the board of directors exercise their fiduciary responsibilities towards shareholders,the quality of information that management share with their boards and the commitment to run transparent companies that maximize long term shareholder value cannot be legislated at any level of detail.Instead,these evolve due to the catalytic role played by the most aggressive elements within the corporate sector and thus enhance the corporate transperancy and responsibility.

Signature of group members

(Mr.Pradipna lodh) (Mr.Pradeep kumar narediya) (Mr.Rajkumar Singh) (Mr.Yogendar singh )

(Mr.Dharmendar kumar pathak)

CORPORATE GOVERNANCE REPORT OF RELIANCE INDUSTRIES LTD Reliances framework is designed to: a. Enable the board to provide strategic guidance for the company and overseeing of the management. b. Define the respective roles and responsibilities of senior executives and officers to ensure accountability. c. Ensure a balance of authority such that no single individual has unlettered powers. Attendance of each director at the Board meetings,last Annual General Meeting and Number of other Directorship and Chairmanship/Membership of committee of each Director in various companies Name of Board Last AGM Other Directors Meetings Directors M.D.Ambani 5 Present 6 A.D.Ambani 5 Present 4 N.R.Meswani 5 Present 1 H.R.Meswani 5 Present 1 H.S.Kohli 4 Present 1 R.H.Ambani 4 Present 4 M.L.Bhakta 5 Present 6 Y.P.Trivedi 4 Present 13 T.R.U.Pai 4 Present 5 U.Mahesh Rao 2 Present Dr.D.V.Kapur 5 Present 10 M.P.Modi 4 Present 3 S.Venkitaramanan 5 Present 8 Scheduling and selection of agenda items for board meetings Committee Memberships 1 1 1 1 3 3 2 4 2 4 Committee Chairmanship 1 3 2 3 2 -

(1)Company holds minimum of four board meetings each year,which are pre-sheduled at the end of each financial quarter .Apart from the four pre-scheduled board meetings additional board meetings are convened by giving appropriate notice at any time to address the specific needs of the company. (2) The meetings are held at the companys Office at third floor,Reliance centre,Walchand Hirachand Marg,Ballard Estate,Mumbai 400038.

(Mr.Pradipna Lodh) (Mr.Pradeep kumar narediya) (Mr.Rajkumar Singh) (Mr.Yoginder Singh)

(Mr.Dharmendar Pathak)
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CORPORATE SOCIAL RESPONSIBILITY

SCOPE AND RELEVANCE OF CORPORATE SOCIAL RESPONSIBILITY

There exists many definations of CSR.One of the most popular of them was given by the World Business Council for Sustainable DevelopmentCSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life to the workforce and their families.Today leading CSR practitioners believe it to be an integral part of wealth creation process.The stakeholder theory of CSR says that a amanagers duty is to balance the shareholders financial interest against the interest of other stakeholders such as employees,customers, and the local community.On a broader context,communist USSR always ranked social responsibility over business.The results are ther for the world to see.

CORPORATE SOCIAL RESPONSIBILITY REPORTING The social audit report of a company is the only looking glass through which we understand its operating philosophy.The history of social reporting dates back to seventies.The first report was published by Abt Associates in 1972 which decided to add an environmental report to its annual financial statements.Social responsibility was a new concept those days with no standards or accreditation.The 1991 Shell Canada report is another landmark in the history of social reporting. Development in technology and communications have also played a vital role in spreading the message of CSR.Earlier it was relatively easy to maintain double standards depending on convience of operations.Today,the internet is making a companys global operations more and more transparent. Signature of group members

(Mr.Pradipna lodh) (Mr.Pradeep kumar narediya) (Mr.Rajkumar Singh) (Mr.Yogendar singh )

(Dharmendar Kumar Pathak)

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CASE STUDY OF CORPORATE SOCIAL RESPONSIBILITY OF COCACOLA

With the accelerating pace of globalization and increasing competition,it becomes inevitable for companies to have clearly defined business practices with a sound focus on public interest.In india the worlds largest beverage maker Cocacola was engaged in a number of community focused CSR initiatiatives.These initiatives were further accelerated since 2003 folowing the various allegations and issues such as presence of pesticide recidues in its beverages and water resource contamination issues that the soft drink giant faced in India.To address this issues and to rebuild its tarnished brand image in India,Coke engaged itself in a number of environment focused CSR initiatives like executing the eko management system in 2003,under which it preserved local water resources.It also adapted measures to reduce water consumption in its production process.This case facilitates discussions on wheather Coke used CSR as a tool for its sustainability in India or only as a green washing effort to counter its allegations.

Pedagogical Objectives: To discuss the challenges faced by Coke in India To analyse measures taken by Coke to address these challenges

To examine the rationale behind Coke's corporate social measures in India To scrutinize whether MNCs in developing countries use CSR initiatives as a tool for its sustainability or only as a green washing effort? To bring out a business model that integrates CSR initiatives in the value charter of a company. Signature of group members

(Mr.Pradipna Lodh)

(Mr.Pradeep Kumar narediya) (Mr.Rajkumar Singh) (Mr. Yoginder

Singh tomar) (Mr.Dharmendar kumar Pathak)

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BRAND EQUITY

Brand equity is the added value endowed on products and services.It may be reflected in the way consumers think,feel and act with respect to the brand as well as in the prices,market share,and profitability the brand commands for the firm.Marketers and researchers use various perspectives to study brand equity.Customer based approaches view it from the perspective of the customereither anindivivual or an organization.The premise of customer based brand equity models is that the power of a brand lies in what customers have seen,read,heard,learned,thought and felt over the brand overtime.Customer based brand equity is the differential effect that brand knowledge has on consumer response to the marketing of that brand,A brand has positive customer based brand equity when consumers react favourably to a product.A brand has negative customer based brand equity if consumers react less favourably to marketing activity for the brand under the same circumstances. BUILDING OF BRAND EQUITY BY PROCTAR AND GAMBLE Procter and Gamble is one of the most skillfull marketers of consumer packaged goods.The companys scope and accomplishments are staggering.It employs more than 138000 people in more than 180 countries.Its sustained market leadership is based on a number of different capabilities and philosophies: Customer knowledge- P&G studies its customers both end customers and trade partners through continous marketing research and intelligence gathering.It spends more than 100$ million annually on more than 10000 formal customer research projects every year and generates more than 3 million customer contacts via its e-mail and phone centre Long term outlook-P&G takes the time to analyze each opportunity carefully and prepare the best product,and then commits itself to making this product a success. Product innovation-P&G is an active product innovator,devoting 1.8$ billion to research and development,an impressively high amount for a packaged goods company.Part of its innovation process is innovating brands that offer new consumer benefits.Recent examples include Febreze,an odor eliminating fabric spray. Signature of group members

(Mr.Pradipna Lodh)

(Mr.Pradeep kumar narediya)

(Mr.Rajkumar Singh) (Mr.Yogendar singh

Tomar)

(Dharmendar kumar pathak)

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 Quality strategy-P&G designs products of above-average quality and continuously improves them.Recent examples include Pantene ice Shine Shampoo,conditioner and styling gel. Brand extension strategy-P&G produces its brands in several sizes and forms.This strategy gains more shelf space and prevents competitors from moving into satisfy unmet market needs.P&G also uses its strong brand name to launch new products with instant recognition and much less advertising outlay. Manufacturing efficiency and cost cutting-P&Gs reputation as a great marketing company is matched by its excellence as amanufacturing company.P&G spends large sums developing and improving production operations to keep its costs among the lowest in the industry,allowing it to reduce the premium prices. Brand Management system-P&G originated the brand management system in which one executive is responsible for each brand.The system has been copied by many competitors but not often with P&Gs success.Recently P&G modified its general management structure so that so that each brand category is now run by a category manager with volume and profit responsibility.

Signature of group members

(Mr.Pradipna Lodh) singh)

(Mr.Pradeep kumar narediya)

(Mr.Rajkumar Singh) (Mr.Yogendar

(Dharmendar kumar pathak)

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CONCLUSION

The csse study done on corporate social responsibility that it is a multi-faceted prism.It affects different companies in different ways.They vary in their way of dealing with social issues and the role of civic societies and governments in resolving such issues.The underlying message seems to be that CSR will slowly but surely become an integral part of business. Brand Equity shows that immediate and long-term objectives are compatible, and may be mutually supportive. It means the Equity ratings add a new Diagnostic dimension to the copytest, to help advertisers understand and optimize performance on the short-term measures. As some of these tested ads find their way into media schedules and the brands are measured again in our longitudinal studies, we expect to see that ads that move these Equity ratings, in the copytest, will build Brand Equity in the long term. Corporate governance mechanisms have been an important issue of enquiry for the researchers in financial economics. The Indian corporate scenario was more or less stagnant till the early 90s but, after the liberalisation of the 90s, the position and goals of the Indian corporate sector changed a lot. Overall, the conclusion seems to be that corporate governance is still in a very nascent stage in the Indian industry. The decision and policy making is still taken mostly as a routine matte. Among the institutional investors also, it seems that the FIIs are the most consistent in stock picking whereas the performances of the domestic institutional investors are sporadic and volatile at best. Signature of group members

(Mr.Pradipna Lodh) singh)

(Mr.Pradeep kumar narediya)

(Mr.Rajkumar Singh) (Mr.Yogendar

(Dharmendar kumar pathak)

References

Books- 1.CORPORATE GOVERNANCE by Dr.S Singh 2.CORPORATE SOCIAL RESPONSIBILITY by Subasis ray 3.MARKETING MANAGEMENT by Philip Kotler

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