UNDER CONTROL

CHAPTER THIRTEEN
CORPORATE GOVERNANCE
Why do we need corporations?

Oxford University Press 2009. All rights reserved.

1
Bigger is better

COMPANY

Oxford University Press 2009. All rights reserved.

2
 Corporation
1. Why corporation is called so?
2. Why a corporation is formed?
3. Who can form a corporation?
4. What is the identity of a corporation?
5. No one can be held responsible in a corporation.
Comment
6. What is the global importance of corporations?
7. Corporations succeed in collective exploitation of the
people. Comment.
8. There is no guarantee that shareholders will get their
money back. Comment
Oxford University Press 2009. All rights reserved.
3
Compare and Contrast
Corporation Country
Association of people - Association of people
voluntary (Voluntary?)
Governance: Legislative, Governance: Legislative,
Executive and judicial Executive and judicial
Sovereign? Sovereign
Bureaucratic Bureaucratic
Multinational International
Dissolution? Dissolution?

Oxford University Press 2009. All rights reserved.

4
 If I were.
Panel discussion

If I were the Chairman

of TATA group in
2020
Oxford University Press 2009. All rights reserved.
5
The man in the machine

IN GOOD COMPANY

Oxford University Press 2009. All rights reserved.

6
 An analogy
A corporation is like a public bus transport
The owner of the bus/buses is a company
The owner/owners does not drive the bus, a driver drives the bus
A manager is like a driver
He takes people to their destination
The owners have the stake in the company
The driver and the other technicians have a stake in the company
So also the passengers of the bus have a stake in so far as they
need the bus to travel
In the whole episode, the driver is the linchpin without whom neither the
owners of the company nor the customers could benefit

Oxford University Press 2009. All rights reserved.

7
 Questions

1. Are managers an essential or accidental part of

corporation?
2. Is the manager an employee or the owner?
3. Does corporation kill creativity?
4. If he is an employee why he cannot strike?
5. If he is an owner why he should get salary?
6. Who is the highest paid manager in the world?

Oxford University Press 2009. All rights reserved.

8
 Debate

MANAGER IS THE LINCHPIN

OF THE FIRM

Oxford University Press 2009. All rights reserved.

9
What is in store for the future

THIRD MILLENNIUM
CORPORATIONS
Oxford University Press 2009. All rights reserved.
10
 2990 AD
Indus valley civilization 2500 BC
Aryan migration to India 1500 BC
Alexander the Great 331 BC
Julius Cesar 55 BC
Golden Age of India 320 AD
Magna Carta 1215 AD
French Revolution 1789 AD
End of East India Company 1858 AD
World War II 1939 AD
UNO 1945 AD
Indian independence 1947 AD
End of communism in Europe/Russia 1991 AD
The World financial meltdown 2008 AD
SHOW EVENTS TILL 2990 AD
Oxford University Press 2009. All rights reserved.
11
 Future of management
In a millennium how would the world look?
Why such long vision of the future is
important from the point of view of
management?
What kind of future would you envisage at
the end of your management career?
What kind of corporate legacy would you
like to leave behind ?
Oxford University Press 2009. All rights reserved.
12
 THANK YOU

Oxford University Press 2009. All rights reserved.

13