lecture on cg icai
TRANSCRIPT
Corporate Excellence through
Corporate Governance
Pavan Kumar Vijay
Immediate Past President, ICSI
MD, Corporate Professionals
Corporate Governance rests with the Vision and Perception of the Leadership
and
A Leader need to adopt a Vision for Corporate Governance
The Institute of Company Secretaries of India
”Corporate Governance is the
application of bestmanagement
practices,compliance of law in letterand spirit and adherence to ethical standards
for effective management and distribution of wealth
and discharge of social responsibilityfor sustainable
development of all stakeholders”
Corporate Governance
Corporate Governance FrameworkCorporate Governance Framework
Output – Input = Wealth Created ?
Sustainability
Happiness andProsperity of all
Stakeholders
Reinvestment
Distribu- tion
Research and DevelopmentHR DevelopmentInfrastructureRisk Management
SUPPLIERS Adequate Returns
HUMAN ASSETS Adequate Remuneration
CUSTOMERS Affordable Prices
PUBLIC 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
Stakeholders in Value ChainStakeholders in 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
Principles of Corporate ExcellencePrinciples of Corporate Excellence
Fairness to all stakeholders
Mutual Trust, Transparency and Togetherness
Unrestricted Communication and Continuous Feedback
Sharing Knowledge, Success Stories and Experience
Sharing Happiness and Concerns
Helping Each Other – Round the Clock
Infact, these principles are the foundation of
Best Governed Organisations
irrespective of their form and size
Advantages of applying Best Corporate Governance Practices
Growth
Growing Revenues
Growing Profits
Growing Market Value
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
Commitment to well-being and progress of all stakeholders is our age old mantra
Satyam Vada Dharmam Chara
- Taittariya Upanishad
“Forever speak the truth and follow the
dharma”
Truth : Disclosure of Actual State of Affairs
(Transparency in operations and transactions)
Dharma : “Dharma is for the stability of
society, the maintenance of social order and the general well-being and progress of humankind.”
- Karna Parva of the Mahabharata. Verse-58 in Chapter 69
Governance Concept in ‘Ramayana’
To provide “the maximum happiness for the
maximum number of people for the maximum
period, based on the principles of Dharma –
righteousness and moral values.”
- Ayodhya Kand
“The Customer is King”
- Mahatma Gandhi
This is the soul behind modern
Marketing Management
Worshipping 33 Crore Godheadssignifying various species, plants,
cosmic elements, …
Care for Panchtatvas - Prithvi, Jal, Vaayu, Akaash and Agni that make a human
being
This is our approach to
Environment Protection
The four essential principles of Mahatma Gandhi's philosophy
Truth, Ahimsa, Trusteeship and Constructive Action
Corporates are also expected to use their
Capacity, Knowledge and Resources
Maximisation of stakeholders’ value and well-being and progress of humankind
TOWARDS
THROUGH
Transparency, accountability and truthful disclosure of state of affairs
Dharma
Truth
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 and
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
Leaders need to strive for excellence in Corporate Governance because
Corporate Excellence and Professional AccountabilityFor Better Leadership
Excellence in Corporate Governance
Corporate Excellence
Social Excellence
National Excellence
Excellence in Corporate Governance leads to National Excellence
Professionalsare acting
asCatalyst
in applyingbest practices in
Corporate Governance
Professionals are adequately developed to take this challenging job
We all Professionals must also bind ourselves by a
Code of Conduct
Thus ensuring highest level of
Integrity
Independence
Excellence
Innovation
Opportunities to serve the Nation are unlimited
• Understand Industry Needs
• Gain ‘Substantial Knowledge of Management’ – Learning little more than what is included in the course curriculum
• Provide PQRS – Productivity, Quality, Reliability and Service
• Use 3Cs - Creativity, Confidence and Communication
• Conduct Periodical SWOT Analysis of Self
• Use Technology to Beat Technology
All you need to do is:
MEDIA AND
ENTERTAINMENT
INFRASTRUCTURE,
POWER AND TELECOM
IT SOLUTIONS
IT ENABLED
SERVICES AND BPO
TEXTILES
TOURISM AND HOTELCAPITAL MARKET AND
ITS INTERMEDIARIES
HOUSING AND
CONSTRUCTIONFMCG
AGRICULTURE AND
FOOD PROCESSING
CAPITAL GOODS
DRUGS, PHARMA
AND HEALTHCARE
BANKING AND NBFCS
FINANCIAL SERVICES
Gain Knowledge of
Industry
Gain Knowledge of Management
FunctionsCORPORATE
COMMUNICATION
STRATEGYSECRETARIAL
AND LEGAL
FINANCIAL ANDACCOUNTS
HUMAN RESOURCES
INFORMATION TECHNOLOGY
MARKETING
R&D AND PRODUCTION
• Productivity – Nation expects you to use resources in most profitable manner
• Quality – There is no compromise on quality
• Reliability – Companies require trust in abilities and loyalty to company all the time
• Service – Value Added Services with courtesy and smile is absolute necessity
Providing PQRS
• Creativity – Innovation is the critical success factor
• Confidence – Believe in Yourself (Yes, You Can Do It)
• Communication – It is how you make people know about your creativity and confidence. It is Communication that creates opportunities.
Using 3Cs
• Strengths: What are my strengths?
• Weaknesses: What are my weaknesses?
• Opportunities: What are new opportunities?
• Threats: What are new threats?
So that you can CHANGE with the TIME
Periodical SWOT Analysis
• Internet and E-commerce
• Enterprise Resource Planning (ERP)
• ERP and CRM Tools for Practicing Consultants
• Data Warehousing and Data Mining
• Computer Based Complex Business Analysis Models
There are many more...
Use Technology to Beat Technology
Co-operate instead of Competing
Optimism Comes from Co-operation
It’s a matter of Perception and Positive Thinking