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Posts Tagged ‘CORPORATE’

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Corporate governance: Indian perspective vis-à-vis international perspective.

The word ‘corporate governance’ has become a buzzword these days because of two factors. The first is that after the collapse of the Soviet Union and the end of the cold war in 1990, it has become the conventional wisdom all over the world that market dynamics must prevail in economic matters. The concept of government controlling the commanding heights of the economy has been given up. This, in turn, has made the market the most decisive factor in settling economic issues.

This has also coincided with the thrust given to globalisation because of the setting up of the WTO and every member of the WTO trying to bring down the tariff barriers. Globalisation involves the movement of four economic parameters namely, physical capital in terms of plant and machinery, financial capital in terms of money invested in capital markets or in FDI, technology, and labour moving across national borders. The pace of movement of financial capital has become greater because of the pervasive impact of information technology and the world having become a global village.

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CORPORATE GOVERNANCE-A COMPARATIVE  STUDY OF  SELECT PUBLIC SECTOR AND PRIVATE SECTOR COMPANIES IN INDIA

                                                      BY

                                Dr.V.V.S.K.PRASAD.,Professor

                                                       &

                          T. VENKATESWARA RAO., Asst.Professor

BACKGROUND

Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation is directed, administered or controlled. Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. The principal stakeholders are the shareholders, management, and the board of directors. Other stakeholders include labor(employees), customers, creditors (e.g., banks, bond holders), suppliers, regulators, and the community at large.

Corporate governance is a multi-faceted subject. An important theme of corporate governance is to ensure the accountability of certain individuals in an organization through mechanisms that try to reduce or eliminate the principal-agent problem. A related but separate thread of discussions focuses on the impact of a corporate governance system in economic efficiency, with a strong emphasis shareholders’ welfare. There are yet other aspects to the corporate governance subject, such as the stakeholder view and the corporate governance models around the world (see section 9 below).

It is a system of structuring, operating and controlling a company with a view to achieve long term strategic goals to satisfy shareholders, creditors, employees, customers and suppliers, and complying with the legal and regulatory requirements, apart from meeting environmental and local community needs.  Read more...

There are a lot of things you can do to ensure a safe and comfortable business trip when you are traveling via commercial airlines. There are a lot of companies that take part in corporate travel savings, when a company is constantly paying for business travel for their employees they will usually try to cut costs of corporate travel by using discount airlines. This means that as an employee you will be traveling via coach and not first class, but just because you are not traveling first class does not mean you can not be comfortable. Here are the top 10 tips for staying comfortable during corporate travel.

1. Sit in bulkhead or exit row aisles. Bulkheads offer extra legroom and no one can recline his seat back into your face. Remember that you have to store your carry-on luggage in the overheads.

2. Dress for duress. Wear flat-soled, lace-up shoes so you can loosen them if your feet swell. Dress shoes don’t adjust for swelling.

3. Protect your bags. Checked bags can get lost. If you have to check, use curbside skycaps to avoid lugging heavy bags through the terminal. Always use luggage locks; some baggage handlers get over-curious about what’s in your bag.

4. Entertain yourself. Bring plenty of magazines; they’re lighter than books and disposable. Don’t forget your Mp3 Player either; it’s the perfect way to avoid unwelcome chatter from the person sitting next to you.  Read more...

Here are some corporate travel solutions serve as a reference to all.

1. Book your travel using online booking tool. Corporate saves money each time you book via the online tool instead of a reservation travel agent. There are many online booking tool which are free.

2. Check on hotel freebies. Look for corporate approved or business contract hotels that offer integrated savings such as free wireless internet access or any free broadband services, parking, or breakfast. Eliminating these expenses can save thousands of dollars each year.

3. Share a rental car with a colleague rather than renting two cars, or take the shuttle bus to the office site. Many hotels provide this free shuttle bus services to corporate offices and even some tourist spots.

4. Share hotel room with colleague if no better corporate room available, since this will safe at least total lodging and transportation by half.

5. Research your flight options before purchasing a ticket and save big

Purchase a not refundable airline ticket (unless you think your plans may change)…you will get a much better deal. Book your trip in advance and save hundreds of dollars on your flight. Some airlines offer deep discounts for reservations made at least 15 days in advance. Using unused or cancelled airline tickets. In the U.S., you can use funds from your unused/cancelled airline ticket when you book a new flight. Book discounted fares from budgeted Airlines online – You will now see discounted airfare rates and earn double rewards bonuses using many online tool. These discounts will save corporate money and give you the double rewards bonus points.

6. Be sure to use your corporate calling card rather than making calls direct from a hotel phone. You would be surprised how much hotels charge for outbound calls.

There is no doubt that interest in corporate governance has substantially increased in recent years. Not only have separate states adopted their own corporate codes but also changes in corporate governance are directed at a global level. For developing economies, corporate governance helps to achieve stable economic growth by means of effective management of corporations and, to some extent, governments (Bushman and Smith 2001). Countries which already possess advanced corporate governance standards strive to strengthen adherence to them. It goes without saying that the catalyst of the process was the corporate and financial collapse of Enron. The crash of this company illustrated that even a company with good financial results might go bankrupt if it lacked solid corporate governance mechanisms guaranteeing trustworthy work of non-executive directors, auditors and the board of directors. Following the scandal, the regulators all over the world developed a number of policies to prevent further failures (Papers4you.com, 2006). Among the most influential documents are the Sarbanes-Oxley Act of 2002 and the Higgs Report of 2003.

So what is corporate governance? There exist numerous definitions of corporate governance, though most of them can be divided into the so called “narrow” and “broad” views (Shankman 1999). The former emphasizes the role of corporate governance in improvement of the relationship between an enterprise and its shareholders. In other words, the main stress here is on resolving the agency problem. On the other hand, the latter and more modern approach states that corporate governance facilitates relationships not only between a company and its shareholders, but also between different stakeholders in the company, including employees, customers, suppliers, bondholders and the government. Therefore, corporate governance becomes important for the society as a whole (Papers4you.com, 2006). There is growing evidence that recent changes in corporate governance make its practical realization conforming to the second view.

It is interesting to look at the most pronounced tendencies in corporate governance development. First, it is increasing institutional investor activism. Big asset management funds, pension funds and other institutional investors now not only passively wait for return on their invested funds, but discharge accountability, for instance, when it comes to directors’ remuneration. Second, there is some evidence of harmonization in corporate governance standards. This process is led by globalization of international trade and financial activities. As a result, many countries adopt the OECD (1999) principles of corporate governance, which predominantly represent an Anglo-American style of governance. However, due to significant political, legal, religious and other differences between various countries it is difficult to expect a high degree of convergence. Third, the scope of corporate governance goals has also increase. Nowadays, managers of corporations make decisions taking into account corporate social responsibility. In other words, social and environmental issues now increasingly determine how well the company performs (Alexander and Buchholz 1978). To sum up, corporate governance in the 21st century is the system of checks and balances which ensures that business entities act in a socially responsible way in all their endeavors, while maximizing shareholders’ value.  Read more...