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THE GREAT INDIAN

CORPORATE GOVERNANCE

SAGA-

-Albert Einstein

BY: ( sowieee cant mention the name)

Try not to become a success but rather try to become a man of value.

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PARIDRASHYA

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CORPORATE GOVERNANCE

Study of distribution of rights and

responsibilities among participants in the

corporation..

CG advocates : transparency accountability in the system

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TRUST + CORPORATE GOVERNANCE=

CORPORATE EXCELLENCE

To trust is to believe despite uncertainty concerninganothers action

Asymmetry of knowledgeWhat are the factors that build trust?

Couragecompetency

Integrity

AcceptanceCharacter

ReliabilityConsistency

Respect

FairnessOpenness

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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.

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Advantages of being trusted

Capital resources can be raised easily

To revive economic health of corporation

Welfare of the societyProjects good corporate image

Fosters brand equity

In case of crisis co. can bail out itself by thehelp of other parties like Govt.

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PRESENT SITUATION: EROSION OF

TRUST WORLDWIDE

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All relationships are trust relationships.. Trust depends uponintegrity. Crisis in trust really means crisis in truth

- Shiv Khera, (You Can Win)

The turn of the millennium witnessed mammoth bankruptcies, accountingscandals 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

Indias current stand: A lack of trust in regulators following scams unearthedin the Indian stock markets:More recently, the massive accounting fraud at Indias Satyam Computers

Recent tragedy with ICICI bank: Rumor of bankruptcy through cell phone Networks

ohhIm worried!!!!!

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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 inIndia; which are

2. Adherence to ethical behavior

3. Fulfillment of CSR4. Honesty is the best policy

5. Respect- give & take relation

6. Follow the global village concept

7. Follow the mool mantra> integrity must be sustained8. Optimism of value grid

9. Intelligence crockery

10. Social balance sheet

11. Indian management services should be initiated.

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The Bhagwat Gita in verse 16-24 says:

Tsmachastrnm pramanam te

karyakarvavyasthitao,

Gyatva shastravidhanoktam karmkurtumihahirsi.

Diw ali.exe

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TRUST IN INDIA THROUGH

RESPECT

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TRUST IN INDIA THROUGH

RESPECT

Trust is the first thing we look forwhen doing anything.

-N.R.NARAYANMURTHY (Chairman of Infosys tech.

the most respected co. in 2003 survey)

Respect:- an aggregation of two broad parts of

companies deliverables

Quantitative (like profitability)Qualitative (like community responsibility)

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

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Trust Through CSR in India

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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 QualityAttract and Retain Employees

Reduced Regulatory Oversight

Some renowned leaders are:CSR programs including rural community and tribaldevelopment, etc &committed to maintain highest standards of CG indealing with stakeholders

runs 15 hospitals & 78 schools all over India & provides adulteducation & rehabilitates handicapped persons having reached more than

5,000 physically challenged individuals

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The public relations link + trust

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The public relations link + trust:

The social face of an organization

Bhagavad-Gita extends into the role of business in thissociety, breaking across the barriers of culture, religionand language

drives stakeholder relationships through multipleplatforms, transforming their websites, issuing reportsand signing up to speak on conference panels.

Well-advised multinationals operating on Indian soil like:

Ford India and MacD,

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Forevil to flourish, good people have to do nothing and evil

shall flourish.--Edmund Burke

Concluding reflections

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It may be stressed that corporate governance is not merelyabout enacting a legislation, but establishing an ultimate bond

of trust & confidence.

Loka sangraha: public good.greatest possible good for all.

Sarve sukhina bhawantu

Dhanam: creation of wealth throughKaushalam (competence) &

Utpadakta (productivity)

Swatantrata: autonomy & independence in business decisionsYou cant build the character & courage by taking away mans

initiative and independence.-Abraham Lincoln.

Lessons From The Vedas:

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Contd..Vishavstata: faith..implying that mgmt is a trustee of stakeholders.

Dharmudh: fair battle..... providing a level playing field to all, thusensuring fair competition.

Life is like a ten speed bicycle. Most of us have gear that we never use.- CharlesSchultz

Vividhta: innovation..variety & innovation ensuring flexibility inapproach.

Everyone whos ever taken a shower has an idea. Its the person who gets out,

dries off, & does something about it who makes a difference.

Dharma: right path..which well uphold family, org. & social fabric.A duty which becomes a desire will ultimately become a delight.

- George Gritter

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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 dharmohatovidhit

Diw ali.exe

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HOW DO WE JUDGE OUR VALUE

SYSTEM?

The Mama TestThe Baba Test

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Many of the great achievements of the

world were accomplished by tired anddiscouraged men who kept on working.

Then is it tough to win the trust ofyour own people(stake-

holders)..???????

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T

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THA

YO

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THAN

YOU

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THANK

YOU

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THANK

YOU

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THANK

YOU

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THANK

YOU

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THANK

YOU

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THANK

YOU

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THANK

YOU

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THANK

YOU

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THANK

YOU

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THANK

YOU

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THANK

YOU

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THANK

YOU

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THANK

YOU

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THANK

YOU

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THANK

YOU

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THANKYOU

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THANKYOU

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THANKYOU

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THANKYOU

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BEST OF LUCKTO ALL OTHERPARTICIPANTS

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Have a smiling

day ahead.