Business Law Policy Text Book

1. CORPORATE
GOVERNANCE
BY : HAJIRA VIHAJ

2. INTRODUCTION
Corporate Governance is a dynamic aspect of business. The term governance derived
from latin word Gubernate meaning to ‘steer’ usually applying to steering of a ship.
There were several frauds and scams in the corporate history. it was felt that system
for regulation is not satisfactory. These regulation should penalize the wrong doers,
while those who adhere the rules and regulation, should be motivated market forces.
Corporate governance is the system of rules, practices and processes by which a
company is directed and controlled. Corporate governance essentially involves
balancing the interests of a company's many stakeholders, such as shareholders,
management, customers, suppliers, financiers, government and the community.
MEANING

3. CG OBLIGATIONS
 OBLIGATION TO SOCIETY :
 National Interest
 Legal Compliances
 Rule of Law
 Honest and Ethical Conduct
 Corporate Citizenship
 Social Concerns
 Competition
 Healthy and Safe Working Environment
A corporation is a creation of law as an association of persons forming part of the
society in which it operates.
The Obligations of corporate governance to society are as follows :

4.  OBLIGATION TO INVESTORS :
 Towards Shareholders
 Transparency
 Financial Reporting and Records
Investors as shareholders and providers of capital are of paramount importance to
a corporation.
A Company has the following obligations to investors :

5.  OBLIGATION TO EMPLOYEES :
 Fair Employment Practices
 Equal Opportunities
 Humane Treatment
 Participation
 Empowerment
 Participative and Collaborative Environment
Corporation in free societies had been adopting a ‘Hire’ and ’Fire’ policy in
employment of men and women in their work places and hardly treated them
humanely taking advantage of the fact that workers had a commodity, namely,
labour that was highly perishable with little bargaining power.
The Obligations towards employees are as follows :

6. THANK YOU