CORPORATE GOVERNANCE

AND ETHICAL DILEMMAS

AT WORK PLACE
By
Group-B

CORPORATE GOVERNANCE
According to Milton Friedman,
Corporate Governance is to conduct
the business in accordance with owners
or
shareholders desires,
which
generally will be to make as much
money as possible, while conforming to
the basic rules of the society embodied
in law and local customs.

NEED FOR CORPORATE

GOVERNANCE

Lays down framework for

creating Long-Term Trust.
Improves Strategic Thinking.
Rationalizes the Management
and Monitoring of Risk.
Limits the top management
from articulating the decisionmaking process.
Creates Long-Term
reputational effect among key
Stakeholders.

OBJECTIVES:

Board capable of taking Independent

Decisions.
Adoption of Transparent Procedures and
Practices.
Effective machinery to serve the
concerns of Stakeholders.
Shareholders are well informed about the
latest development.
Board remains in effective control of the
affairs of the company at all times.

CORPORATE GOVERNANCE IN INDIA

The Indian corporate scenario was

more or less stagnant till the early 90s.
The position and goals of the Indian
corporate sector has changed a lot
after the liberalization of 90s.
Indias economic reforms made a
steady progress in 1994.
India with its 20 million shareholders, is
one of the largest emerging markets in
terms of the market capitalization.

THE SATYAM SCANDAL

Overstated assets and income

The results announced on October 17,
2009 overstated quarterly Revenues by
percent and profits by 97 percent.
The global head of internal audit also
illegally obtained loans for the
company.
Created 13000 fake salary accounts
Created fake customer identities and
generated fake invoices to inflate
revenue

Continued..
The CEO was convinced that the gap in
the balance sheets reached an
unmanageable heights and could not be
filled.
Satyam Computer crashed by Rs 139.15
or 77.69 per cent to close at Rs 39.95,
after the Chairman`s confession.
Bombay stock exchange fell 700 points.
The Sensex recorded the biggest singleday loss in the past two months, after
Satyam Computers Services, plunged 80
percent.

ELEMENTS OF GOOD
CORPORATE
GOVERNANCE

Role and powers of board.

Legislation.
Management Environment.
Board Independence.
Code of Conduct.

CONTINUED..

Strategy Setting.
Financial and Operational
Reporting.
Audit Committees.
Risk Management.

CONCLUSION

Corporate governance And economic

development are intrinsically linked.
Effective corporate governance
systems promote the development of
strong financial systems
Which, in turn, have an unmistakably
positive effect on economic growth and
poverty reduction.

ETHICAL DILEMMAS AT
WORK PLACE

WHAT ETHICS IS?

System of moral principles

, rules and conducts.
The ability to distinguish
between right and wrong
and to act accordingly.

DILEMMAS AND ITS TYPE:Dilemma is a situation where there is no clear easy choice
or answer.
Types of Dilemmas:Double bind dilemmas
In it victim placed in No win situation forced by another.

Fairness dilemmas
Arise when groups are faced with making decisions about
how to share their resources and rewards.

HOW TO OVERCOME ETHICAL

DILEMMAS AT WORKPLACE?

Step1
Developing a workplace policy depends on companys philosophy,
mission statement and their code of conducts.

Step 2
Give training to employees about workplace ethics. Give instruction
methods to engage employees in learning how to manage and resolve
ethical dilemmas or how to face with ethical issues.

Step3
Consider whether the organization needs an ethics hotline, which is
confidential service for every employee where employees may
contact whenever they encounter workplace dilemmas that put them
into uncomfortable or threatening positions.

Step4
Refrain from making employment decisions, such as terminations,
in connection with whistle blowing or an employees right to
protected activity under whistle blowing laws.

Step5
Design the same policies for every employee at workplace.
And use the same business principles in every circumstance.

HOW MANAGEMENT CAN AVOID/ADDRESS ANY CONFLICT

OF INTEREST AT WORKPLACE?

Apply working decision on the

bases of merit.

Build understanding between

management and employees.

Acknowledge the contribution

and give clear cut paraphrase
to avoid the ineffectiveness
and ambiguity.

AVOID THE CAUSES OF CONFLICT AT

WORKPLACE

THERE ARE THE SIMPLE THREE

METHODS FROM WHICH MANAGEMENT
SHOULD APPLY AND RESOLVED THE
CONFLICT AT WORKPLACE

Clarify the problem.

Generate and
evaluate the
possible solution.

Evaluate the
solution.

SOME POINTS OF COMPLIANCE

PROGRAM

Maintain standard and

procedures.

High level oversight.

Care in delegation of authority.

Effective communication.

Accountability.

Conclusion
Ethics at workplace is very important for Business.
It grow and run its operations effectively.
If any kind of ethical dilemmas occur at the
workplace, than it can
be resolved by the effective role of business
communication.

Avoid
Avoid disobeying the rules and regulations of the
organization.
Favoritism should be avoided at workplace.
Unethical HR decisions for hiring and firing should
be avoided.

K
N
A
H
T
!
!
U
YO