ethic and development
TRANSCRIPT
ETHICS AND DEVELOPMENT
Entrenching the principles of good governance in public
and private sectors for sustainable development
Pavan Kumar VijayPast President The Institute of Company Secretaries of India
04/12/23
…the application of best management practices, compliance of law in letter and spirit and adherence to ethical standards for effective management and distribution of wealth and discharge of social responsibility for sustainable development of all
stakeholders”
Institute of Company Secretaries of India
“Corporate governance is…
Corporate Governance rests with the Vision and Perception of the Leadership
and
A Leader need to adopt a Vision for Corporate Governance
Corporate Governance Framework
Output – Input = Wealth Created ?
Sustainability
Happiness andProsperity of all
Stakeholders
Reinvestment
Distribu- tion
Research and DevelopmentHR DevelopmentInfrastructureRisk Management
SUPPLIERS Adequate ReturnsHUMAN ASSETS Adequate RemunerationCUSTOMERS Affordable PricesPUBLIC Payment of Taxes and Partnership in National Development Projects
Wealth Creation Wealth Management Wealth Sharing
EnhancedCapabilities
Best Management Practices are Vital Here Law and Ethics are Vital Here
The stakeholder value chain
SUPPLIERS CUSTOMERSHUMAN RESOURCE
Supply Funds, Materials and Services
Value Addition and Management of Resources
Give Opportunity to Co. to Satisfy their Needs
Adequate Returns for Funds, Material and Services Supplied
Adequate Salary and Security for leading a Happy Life
Best Quality Products and Customer Care at Minimum Prices
ROLE OF STAKEHOLDERS
EXPECTATIONS OF STAKEHOLDERS
Potential Suppliers, Human Resources and Customers
Biological, Economic and Cultural EnvironmentPUBLIC
PUBLIC EXPECTS PARTNERHIP FOR SUSTAINABLE DEVELOPMENT
The OECD Principles of Good Governance
The age old mantra of us Indians is that
Commitment to well-being and progress of all stakeholders
Satyam Vada Dharmam Chara
- Taittariya Upanishad
Mantra for Good Governance
Cont…
Speak the Truth and Practice Righteously
Mantra for Good Governance
- Karna Parva of the Mahabharata. Verse-58 in Chapter 69
“The Customer is King”
- Mahatma Gandhi
Mahatma Gandhi’s Philosophy-The Father of Indian Nation
This is the soul behind modern
Marketing Management
Worshipping 33 Crore Godheadssignifying various species, plants,
cosmic elements, …
Care for Panchtatvas (The Basic Elements)
Earth, (Prithvi)
Water, (Jal),
Sky , (Akaash)
Wind, (Vaayu) &
Fire (Agni)
that make a human being
This is our approach to
Environment Protection
The essential principle of Mahatma Gandhi's Governance philosophy
“Trusteeship”
Capacity, Knowledge and Resources
Maximization of stakeholders’ value and well-being and progress of humankind
TOWARDS
THROUGH
Transparency, accountability and truthful disclosure of state of affairs
Ethics
Truth
Corporate are also expected to use their
This is our own age old mantra of Good Governance
Companies that have followed theseprinciples of
Corporate Governancehave
Consistently earned high returns, increased their net worth,
enhanced their shareholders wealth
Invested significantly in proactive research and development
Developed people into ‘achievers’ than just ‘performers’
Dealt ethically with customers, government and business partners
Maintained and updated their professional management culture, system and processes
..and accomplished
WINNINGEMPLOYEES
WINNINGEMPLOYEES
GROWINGINVESTORS
GROWINGINVESTORS
DELIGHTEDCUSTOMERS
DELIGHTEDCUSTOMERS
TRUSTEDSUPPLIERS
TRUSTEDSUPPLIERS
SATISFIEDGOVERNMENT AND
REGULATORS
SATISFIEDGOVERNMENT AND
REGULATORS
HAPPYSOCIETY
HAPPYSOCIETY
Advantages of applying Best Corporate Governance Practices
Widespread Goodwill and Brand Reputation
Access to Global Markets
Better Access to Human Capital
Ready Market for New Products
Widening Customer Base
Enhanced Trust and Confidence of all
Stakeholders
EMPLOYEESEMPLOYEES
INVESTORSINVESTORS CUSTOMERSCUSTOMERS
SUPPLIERSSUPPLIERS
GOVERNMENT AND REGULATORS
GOVERNMENT AND REGULATORS
SOCIETYSOCIETY
Leading to…
Environment
Civil SocietyBusiness Society
SUSTAINABLEDEVELOPMENT OF
NATION
Thus benefits for the nation
• Happier Nation • World wide recognisation • Overall Growth• Enhanced confidence amongst foreign investors through
Primary/Secondary Market • Overall stakeholders benefit • Enhanced repute and significance of Citizens at the global
platform.
The Indian Growth Story &
Governance Model
The Indian scenario – The Initial Hurdles • High population • High poverty • Disparity of income • Lack of education • Lack of employment opportunities • Low infrastructural development
Slow Industrial Growth due to
• Lack of liberalization • Underdevelopment of Industrial Structure • Insufficient entrepreneurial initiatives • Poor Governance • Corruption
India Today
• 2nd most populous nation 1.2 billion – Largest Pool of young & Skilled Manpower
• The 2nd fastest growing economy of the world after China. • GDP USD 1 trillion and growth in last 4 years is 9%, 9.6%,
9.4% and 6.7% • GDP - Agriculture : 20%, Industry 23%, Services: 57%• Never defaulted on international commitments• Preferred destination of Foreign Direct Investment• Believed to be one of the top five Economies by 2050
The Story of Change over
The initiatives by the government
• Liberalization of Industrial Development • Improved Infrastructural development• Development through Public Private Partnership (PPP) Model • Transparency in Disclosures through RTI act • Strengthened Governance Model
The desired result
• Optimum utilization to high population • Increased per capita Income • More Infrastructural Development• More FDI due to Increased accountability • Investors trust within and outside nation
Corruption The real enemy of good governance -The
root cause
•Restriction in grant of permission •Non Transparency •Non Accountability •No fear of wrong doing
The way out to deal with Corruption
– The Simplified legal System – Fuller disclosure & dissemination of Information– Strict actions against wrong doers – Stronger Judiciary
The Anti Corruption Implementation Model
– The e-governance Initiative (MCA21, UID, other e-Governance Models)
– Better Transparency & Accountability through the Right to Information (RTI) Act
Initiatives towards Corporate Governance by The Institute of Company Secretaries of India
Initiatives of ICSI towards good governance
• The Corporate Governance Award function
• The Post Membership Qualification on Corporate Governance
• The Corporate Governance Module for best practices
• The laying of secretarial standards for best practices
The Secretarial Standards of ICSI one of its own type
• Secretarial Standard on Meetings of the Board of Directors
• Secretarial Standard on General Meetings • Secretarial Standard on Dividend • Secretarial Standard on Registers and Records • Secretarial Standard on Minutes • Secretarial Standard on Transmission of Shares and D
ebentures
• (All ten SS)
Recommendation for ICPSK
• Advocacy of Good Governance Practices • Recognition to Good Governed Companies• Specifying structures and role models • Inculcate the better Governance Practices in Members &
Students• The Secretarial Standards
Outstanding Performance, Higher Profits,
Expanded Market Reach and the like FAILS
to protect a company which has put good governance & ethics
at the back burner….
History is Witness
D
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..…Only the culture of strict adherence to good compliance can
keep a company ahead on sustainable basis , bring in larger
profits!!!
Secret behind building foundations
Tcs & others
S
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CORPORATES SHOULD ACT LIKE HONEYBEE WHICH SUCK THE NECTAR OF THE FLOWERS
WITHOUT EFFECTING ITS FRAGRANCE AND PRODUCE HONEY FOR THE WELL –BEING OF SOCIETY .
Thank you