Ethics and Corporate Governance in Indian Business

Submitted by: Group-3

Priya Saklani (88)

Amal Jose (06)

Ashwaq (22)

Gazal pahuza (38)

Lokesh Sharma (55)

Pramod Hiremath (71)

Sudheer Chauhan (103)

Submitted To:

Dr. Mousumi Sen Gupta

Acknowledgment

We would like to express our heartfelt gratitude to our course coordinator,

Prof. Mousumi Sen Gupta who gave us the golden opportunity to prepare this project of Business Ethics and Corporate Governance. We are indebted to her for her valuable guidance and constant support in the form of classroom teachings.

A vote of thanks also goes to our group members for helping each other out in our endeavour to make this project a success. We would like to extend our thanks to the management of KIAMS for giving us the required facilities to get the resources and materials necessary for making this project. And, last, but not the least, we would like to thank the Almighty God for being with us throughout the making of this project.

Introduction

Business Ethics and Corporate Governance discusses the theories of ethics and corporate

governance and explains how they can be applied in various business situations. Business and

ethics cannot be kept apart for long. People at all levels inevitable face ethical decision in their

everyday working lives. Ethical issues arise in respect of marketing, Manufacturing and research,

in human resources and finance, in business strategy and corporate governance.

Corporate governance is about reliable control in business. Ethics is deals with values and

beliefs that enables a chairman to name between right and wrong, and therefore name from

choice courses of action. There is generally a lack of awareness among these enterprises

regarding significance of corporate governance and if there is awareness, there is a general

aversion to adopting these practices because of the high cost of implementation. India's SEBI

Committee on Corporate Governance defines corporate governance as the "acceptance by

management of the inalienable rights of shareholders as the true owners of the corporation and of

their own role as trustees on behalf of the shareholders. It is about commitment to values, about

ethical business conduct and about making a distinction between personal & corporate funds in

the management of a company” .Ethical care is good for business as a classification is seen to

control a business in line with a expectations of all stake holders. There is therefore no one

singular indication of Corporate Governance.

The corporate governance as a control mechanism that ensures the optimum use of the human,

physical and financial resources of an enterprise. Companies have now begun to integrate ethics

into their corporate cultures and concentrate on putting appropriate corporate governance

mechanisms in place. Many Indian companies too have recognized the importance of integrity,

transparency, and open communications. They believe that the goodwill resulting from adopting

and successfully implementing a code of business ethics will help in long run to translate into

economic gains. Today, investors want to ensure that the companies they invest in are not only

managed properly but also have proper corporate governance.

Research

We have researched many sources and magazines to understand Business Ethics and Corporate

governance and their significance in today’s Indian business. In this report we did an extensive

research on few companies as illustrated below in the report to understand their ethical practices

and corporate governance norms followed.

We got the details of the companies through secondary sources like internet and Wikipedia.

However we contacted few officials in companies like Coca-cola to make sure if the collected

data is relevant or not.

Time period for the research was limited; however the report covers many aspects of ethics and

corporate governance in the companies and various sectors in today’s Indian business.

Business Ethics and Corporate Governance Norms in few sectors

Finance

Fundamentally, finance is a social science discipline. The discipline borders behavioral economics, sociology, economics, accounting and management. It concerns technical issues such as the mix of debt and equity, dividend policy, the evaluation of alternative investment projects, options, futures, swaps, and other derivatives, portfolio diversification and many others. It is often mistaken to be a discipline free from ethical burdens.

The 2008 financial crisis caused critics to challenge the ethics of the executives in charge of U.S. and European financial institutions and financial regulatory bodies. Finance ethics is overlooked for another reason—issues in finance are often addressed as matters of law rather than ethics.

Fairness in trading practices, trading conditions, financial contracting, sales practices, consultancy services, tax payments, internal audit, external audit and executive compensation also fall under the umbrella of finance and accounting. Particular corporate ethical/legal abuses include: creative accounting, earnings management, misleading financial analysis insider trading, securities fraud,bribery/kickbacks and facilitation payments. Outside of corporations, bucket shops and forex scams are criminal manipulations of financial markets. Cases include accounting scandals, Enron,WorldCom and Satyam.[citation needed]

Human resource management

Human resource management occupies the sphere of activity of recruitment selection, orientation, performance appraisal, training and development, industrial relations and health and safety issues. Business Ethicists differ in their orientation towards labour ethics. Some assess human resource policies according to whether they support an egalitarian workplace and the dignity of labor.

Issues including employment itself, privacy, compensation in accord with comparable worth, collective bargaining (and/or its opposite) can be seen either as inalienable rights or as negotiable. Discrimination by age (preferring the young or the old), gender/sexual harassment, race, religion, disability, weight and attractiveness. A common approach to remedying discrimination is affirmative action.

Potential employees have ethical obligations to employers, involving intellectual property protection and whistle-blowing.

Employers must consider workplace safety, which may involve modifying the workplace, or providing appropriate training or hazard disclosure.

Larger economic issues such as immigration, trade policy, globalization and trade unionism affect workplaces and have an ethical dimension, but are often beyond the purview of individual companies.

Trade unions

Unions for example, may push employers to establish due process for workers, but may also cost jobs by demanding unsustainable compensation and work rules.

Unionized workplaces may confront union busting and strike breaking and face the ethical implications of work rules that advantage some workers over others.

Management strategy

Among the many people management strategies that companies employ are a "soft" approach that regards employees as a source of creative energy and participants in workplace decision making, a "hard" version explicitly focused on control and Theory Z that emphasizes philosophy, culture and consensus. None ensure ethical behavior. Some studies claim that sustainable success requires a humanely treated and satisfied workforce.

Sales and marketing

Marketing Ethics came of age only as late as 1990s. Marketing ethics was approached from ethical perspectives of virtue or virtue ethics, deontology, consequentialism, pragmatism and relativism.

Ethics in marketing deals with the principles, values and/or ideals by which marketers (and marketing institutions) ought to act. Marketing ethics is also contested terrain, beyond the previously described issue of potential conflicts between profitability and other concerns. Ethical marketing issues include marketing redundant or dangerous products/services transparency about environmental risks, transparency about product ingredients such as genetically modified organisms possible health risks, financial risks, security risks, etc., respect for consumer privacy and autonomy, advertising truthfulness and fairness in pricing & distribution.

According to Borgerson, and Schroeder (2008), marketing can influence individuals' perceptions of and interactions with other people, implying an ethical responsibility to avoid distorting those perceptions and interactions.

Marketing ethics involves pricing practices, including illegal actions such as price fixing and legal actions including price discrimination and price skimming. Certain promotional activities have drawn fire, including greenwashing, bait and switch, shilling, viral marketing, spam (electronic), pyramid schemes and multi-level marketing. Advertising has raised objections about attack ads, subliminal messages, sex in advertising and marketing in schools.

Production

This area of business ethics usually deals with the duties of a company to ensure that products and production processes do not needlessly cause harm. Since few goods and services can be produced and consumed with zero risk, determining the ethical course can be problematic. In some case consumers demand products that harm them, such as tobacco products. Production may have environmental impacts, including pollution, habitat destruction and urban sprawl. The downstream effects of technologies nuclear power, genetically modified food and mobile phones may not be well understood. While the precautionary principle may prohibit introducing new technology whose consequences are not fully understood, that principle would have prohibited most new technology introduced since the industrial revolution. Product testing protocols have been attacked for violating the rights of both humans and animals

Examples of Ethics and Corporate Governance in Indian Companies

1) Ethical issues concerning Coca-Cola in India

Situation Analysis:

In 2003, the community near the Coca-Cola bottling plant in Kerala, India protested against the

water scarcity and polluted water that resulted from its bottling operations. The allegations

caused the closure of the bottling plant. Coca-Cola was banned in the state for these unethical

business practices. Soon after the incident, the Center for Science and Environment (CSE), a

Delhi-based environmental NGO, released a report indicating the presence of pesticides, greatly

exceeding European standards, in a dozen popular beverages sold under the brand names of the

Coca-Cola Company and PepsiCo. This report raised serious protests all over India on the soft

drink industries, especially Coca-Cola and PepsiCo. Together, the companies have 90% of the

India's soft drink market.

In response to the allegations, Coca-Cola denies them by saying their products are safe and

questions the lab reports presented by CSE. The University of Michigan placed the Coca-Cola

Company on probation in 2006, and asked for an independent assessment of its operations in

India. The soft drinks were examined by an independent lab, The Energy and Resources Institute

(TERI). According to the reports the soft drinks were declared safe and pesticide free. However,

the CSE claimed that only the water was tested and not the other ingredients; ingredients such as

artificial flavors and sugar. After the reports from TERI were published the government declared

soft drinks as safe. However, the problems with some bottling plants still remain, due to the

depleting levels of ground water, day by day.

Critical Issues/Problems:

Solid waste and water issue: The communities near the bottling plant in India complained about

the passage of sludge as fertilizer, causing health and environmental damage. The most

important issue concerning these communities is the depletion of water levels caused by the

Coca-Cola bottling operations which have drastically reduced availability of water for irrigation

purposes.

Pesticides in soft drinks: The other issue concerning human health caused by Coca-Cola is that

their bottled water and soft drinks contain pesticides which were tested by the reputed NGO,

CSE.

Dual product standards: Coca-Cola is accused of having dual standards in terms of their

products and safety measures concerning human health with respect to USA, Europe and India.

Community issue: These allegations affected Coca-Cola largely with its sales and also caused

the closure of one of their bottling plants in Kerala, India. Additionally, Coca-Cola’s products

are banned in the state of Kerala, India.

Action Taken:

Coca-Cola Company, India thought seriously about its corporate responsibility and witnessing

huge sales losses. In order to gain trust among the local communities near the bottling plant, they

improved their business practices and reduced the water usage by 34%. Through the practice of

rainwater harvesting, Coca-Cola returned substantial water to the aquifers. They have stopped

distributing sludge as Biosolids(fertilizers) to farmers for agriculture use, and have taken

initiatives with the Indian government to encourage the development of additional solid waste

disposal sites. The water used for making soft drinks is treated with activated carbon filtration

and run through a purification process to ensure that the water is free of pesticide residue. The

ingredients are also closely monitored and undergo various quality checks. According to the

company’s factsheet, they strictly follow the product standards which are the same all over the

world.

Coca-Cola has also partnered with the NGO’s and the government to provide medical access to

poor people through regular health camps. In addition to their outreach efforts, the company

committed itself to environment responsibility through its business operations. For example by

following the practices of conserving energy and by adhering to the ban on purchasing CFCs,

Coca-Cola exhibited greater corporate responsibility.

The allegations in other ways helped Coca-Cola Company, India to show their corporate social

responsibility and to maintain good product quality standards. The initiatives all over India

helped them reach villages for a good cause and also indirectly marketed their products with

establishing a trust among the public. After all these allegations, the CSE is still not convinced of

the quality of the product. Therefore, Coca-Cola must prove that they have upgraded their lab

with sophisticated instrument which is capable of measuring pesticide residue in soft drinks. As

per the recent reports by CSE, they claim that the pesticide residue has gone up 27 times higher

than expected level by the Bureau of Indian Standards (BIS) (in 2006).

2) INFOSYS SACKS TECHIES FOR ‘UNETHICAL BEHAVIOUR’

Infosys Technologies has sacked a software engineer, Abhishek Gupta, for making a hoax call to budget carrier GoAir at Delhi airport Oct 25 to avoid missing his Bangalore-bound flight, a company official said here on Tuesday.

“Yes, we have sacked Gupta for indulging in unethical behavior. We have a very strict code of conduct. We take strict action against those who do not adhere to it,” Infosys board member and head of HRD and education and research T.V. Mohandas Pai told media.

The 25-year-old Gupta caused a bomb scare by telling GoAir staff that there was some suspicious object on the plane after he failed to convince them earlier to delay the flight. “He thought the hoax call will delay the flight and he could reach the airport in the meantime to catch the flight,” a Delhi police official said after Gupta was taken into custody and jailed.

The IT bellwether has also suspended another software engineer, Pallav Chakraborty, after he was arrested with his wife Sinchita by the Bangalore police Dec 29 for allegedly torturing their 15-year-old domestic maid.

“Though Chakraborty joined the company 15 days before his arrest, we suspended him after an inquiry into the child abuse, which is a very sad thing to have happened,” Pai said.

As the police were investigating the case and the accused was in the judicial custody, Pai said the company would take strict action against him after the law had taken its course.

“We do not condone such acts. We are saddened by such an inhuman act. We have 109,882 employees on rolls. I think as we grow bigger, we are not the sample but part of the universe,” Pai said on the margins of a media briefing on the company’s financial performance for the third quarter.

Pallav and Sinchita, who hail from Kolkata, brought the girl from West Bengal for household chores.A social organization rescued the girl after raiding the house following a tip that a young domestic maid was in a bad state with injuries on her back and cut marks on her lips.

The company was also forced to suspend another engineer, Krishnamurthy, working at its Mysore development center, after the police arrested him Dec 3 on the charge of molesting a French woman. The three incidents occurred at a time when the company was recovering from the impact of a year-long global tech meltdown.

3) The retrenchment drama that unfolded in one of India’s leading aviation companies, Jet Airways (India) Limited in Oct 2008.

More than thousand employees were laid off. It was a part of major Cost-cutting exercise to tackle Global slowdown and price hike of Aviation fuel.

JET AIRWAYS as on Oct 2008 was Largest Indian Aviation Industry ($6 billion) with a fleet of 107 Domestic aircraft serving 1,009 daily flights. It has 82 International routings and total strength of 19000 employees.

On Oct 16, 2008, Jet announced that it would lay off nearly 1,100 of its staffs to streamline operation. A day after it had already laid off around 800 of its cabin crew members. Simultaneously announced second phase of lay-off of 1100 employees, mainly from departments like flight attendant, cockpit crew etc.

Amidst great furor and opposition by various organizations and political parties, Naresh Goyal, chairman of Jet, reinstated the employees a day later the great emotional drama. November 2008, Jet decided on a 20% cut in the salaries of its pilots, engineers, and some other staffs.

Employees were FIRED with no PRIOR NOTICE. The entire force of unconfirmed staff was being laid off on a 30-day compensation package. Company took action only against lower staffs.

Ethical issues:

Some most crucial questions unanswered….

Where would those 1900 employees go? Why took action only against lower grade staffs? Senior management was very less affected. What would be the future of those students currently taking courses in cabin crew,

captain etc? Why did the Jet CEO enter the competitive market, instead of playing down after

foreseeing risks?

It throws a serious question towards the accountability of an organization to its employees. The very existence of any company is because of its employees. Company keeps on focusing on customer satisfaction when its own people are so highly dissatisfied. Employees are more than just-a-resource. There was a huge protest against management.

Observations:

No company would know of a risk overnight, its built over a period and there should not be any drastic decision which may endanger its employees.

More accountability from top management.

The role of HR executive is important to ascertain that people’s interests are not left

aside in the race for profits

The HR executive to ensure no discrimination in pay cut and lay off.

Before reaching to decision, make environment conducive to acceptance of decision

4) SATYAM SCAM

The case examines the corporate governance issues at the India based IT services company, Satyam Computer Services Limited (Satyam). In mid-December 2008, Satyam announced acquisition of two companies - Maytas Properties and Maytas Infrastructure owned by the family members of Satyam's founder and Chairman Ramalinga Raju (Raju). It planned to acquire 100% and 50% stakes in Maytas property and infra for $1.6B. Due to adverse reaction from institutional investors and the stock markets, the deal was withdrawn within 12 hours.

Questions were raised on the corporate governance practices of Satyam with analysts and investors questioning the company's board on the reasons for giving consent for the acquisition as it was a related party transaction.

After the deal was aborted, four of the prominent independent directors resigned from the board of the company. In early January 2009, Raju revealed that the revenue and profit figures of Satyam had been inflated for past several years. The following were the inflated figures:

Inflated cash and bank balance Rs.5040cr Nonexistent accrued interest Rs376cr Understated liability of Rs.1230cr Overstated Debtor position of Rs.490cr Inflated staff by 12000 (Actual were 40000) Revenue of Rs.2700cr (Actual were Rs.2112cr) Operating margin to be 6494 cr (Actual were 61cr)

INDIA’S LARGEST FRAUD- Rs.7800crore (now estimated as 14000 crore)

As per the definition of corporate governance discussed above, A good corporate governance is one where a firm commits & adopts ethical practices across its entire value chain & in all of its dealing with a wide group of stakeholders encompassing employee, customer, vendors, regulators & shareholders in both good and bad times.

Corporate governance includes various parties:

Shareholders Employees Management Bankers Government

Governance issue at Satyam arose because of nonfulfillment of obligation of the company towards the various stakeholders. It proved a poor relationship with all the stakeholders.

It is well known that a shareholder has a right to get information from the organization; such information could be with respect to the merger and acquisition. Shareholders expect transparent dealing in an organization. They even have right to get the financial reporting and records.

In the case of satyam, the above obligations were never fulfilled. The acquisition of maytas infrastructure and properties were announced, without the consent of shareholders. They were even provided with false inflated financial reports. The shareholders were cheated.

It is well known that the collapse of any organization’s reputation has a direct impact on the employee’s job. As per the case, employees were shown with an inflated figure. The excess of employees in the organization were kept under VIRTUAL POOL who received just 60% of their salaries and several were removed.

The entire scam had its impact on management. Questions were raised over the credibility of management.

Any organization has its obligation towards the Government by means of timely payment of taxes and abiding by the rules and laws framed up by the Government. As per the case with satyam, the company did not pay advance tax for the financial year 2009. As per the rule, the advance tax is to be paid 4 times a year; such was not fulfilled by them.

Finally the satyam computer consultancy limited didn’t have good relationship iwt bak too. SCS was blacklisted by World Bank over charges of Bribery. It was declared ineligible for contracts to providing:

Improper benefit to bank staff. Failing to maintain documentation to support fees.

The revelation further deepened concerns about poor corporate governance practices at the company. The case describes the corporate governance structure at Satyam, its code of conduct, roles and responsibilities of different committees under the board whistle blower policy etc. It highlights the role played by the independent directors of Satyam in approving the Maytas deal and discusses their limitations.

CONCLUSION:

As earlier stated that corporate governance consists of four parties. In case of satyam fraud, board is unable to fulfill its role & responsibilities.

EMPLOYEES

SHARE HOLDERS

MANAGEMENT

BOARD

Now we discuss the responsibilities that should be followed ethically by board and what is actually did –

Ethical responsibilities:

•Governing the organization by establishing broad policies and objectives;

•Selecting, appointing, supporting and reviewing the performance of the chief executive;

•Ensuring the availability of adequate financial resources;

•Approving annual budgets;

•Accounting to the stakeholders for the organization's performance.

Actual scenario:

Despite the shareholders not being taken into confidence, the directors went ahead with the management's decision.

The government too is equally guilty in not having managed to save the shareholders, the employees and some clients of the company from losing heavily.

Simple manipulation of revenues and earnings To show superior performance Raising fictitious bills for services that were never rendered. To increase the Cash & bank balance correspondingly. Operating profits were artificially boosted from the actual Rs 61 crore to Rs 649 crore. Its financial statements for years were totally false, cooked up and... Never had Rs 5064 crores (US$ 1.05 Billion) shown as cash for several years. Its liability was understated by $ 1.23 Billion. The Debtors were overstated by 400 million plus. The interest accrued and receivable by 376 Million never existed.

So when the case came in light following are the actions that have been taken:

Nasscum sets up panel to avoid satyam like case in future- formed a corporate Governance & ethics committee, chaired by N.R.Narayana Murthy (chairman and chief mentor of Infosys.)

Hinduja Global chalks out 100 day plan for satyam. 8 Year ban on satyam to be reviewed. Govt. orders CBI to probe fraud (concerned about 52000 employees) - agencies (3

months’ time to probe)

Serious fraud investigation office (SFIO) Market regulation SEBI, Institute of chartered accountancy India (ICAI) Andhra police

The SEBI had in December given a clean chit to Satyam in the probe on violation of corporate governance law.

The government has realized the need of code of conduct & whistleblower policy, now we will discuss what is these terms and how they played an important role.

CODE OF CONDUCT:

This Code of Business Conduct covers a wide range of business practices and procedures. It does not cover every issue that may arise, but it sets out basic principles to guide all employees and officers of the Company. Those who violate the standards in this Code will be subject to disciplinary action, including possible dismissal. Furthermore, violations of this Code may also be violations of the law and may result in civil or criminal penalties for you, your supervisors and/or the Company. The basic principles discussed in this Code are subject to any Company policies covering the same issues:

Compliance with Laws, Rules and Regulations Conflicts of Interest Corporate Opportunities Competition and Fair Dealing Political Contributions Discrimination and Harassment Health and Safety Confidentiality Protection and Proper Use of Company Asset

5) Corporate Governance in ITC limited.

Preamble

Over the years, ITC has evolved from a single product company to a multi-business corporation. Its businesses are spread over a wide spectrum, ranging from cigarettes and tobacco to hotels, packaging, paper and paperboards and international commodities trading. Each of these businesses is vastly different from the others in its type, the state of its evolution and the basic nature of its activity, all of which influence the choice of the form of governance. The challenge of governance for ITC therefore lies in fashioning a model that addresses the uniqueness of each of its businesses and yet strengthens the unity of purpose of the Company as a whole.

Since the commencement of the liberalization process, India's economic scenario has begun to alter radically. Globalization will not only significantly heighten business risks, but will also compel Indian companies to adopt international norms of transparency and good governance. Equally, in the resultant competitive context, freedom of executive management and its ability to respond to the dynamics of a fast changing business environment will be the new success factors. ITC's governance policy recognizes the challenge of this new business reality in India.

Definition and Purpose

ITC defines Corporate Governance as a systemic process by which companies are directed and controlled to enhance their wealth generating capacity. Since large corporations employ vast quantum of societal resources, we believe that the governance process should ensure that these companies are managed in a manner that meets stakeholders aspirations and societal expectations.

Core Principles

ITC's Corporate Governance initiative is based on two core principles. These are:

Management must have the executive freedom to drive the enterprise forward without undue restraints; and

This freedom of management should be exercised within a framework of effective accountability.

ITC believes that any meaningful policy on Corporate Governance must provide empowerment to the executive management of the Company, and simultaneously create a mechanism of checks and balances which ensures that the decision making powers vested in the executive management is not only not misused, but is used with care and responsibility to meet stakeholder aspirations and societal expectations.

Cornerstones

From the above definition and core principles of Corporate Governance emerge the cornerstones of ITC's governance philosophy, namely trusteeship, transparency, empowerment and accountability, control and ethical corporate citizenship. ITC believes that the practice of each of these leads to the creation of the right corporate culture in which the company is managed in a manner that fulfills the purpose of Corporate Governance.

Trusteeship:

ITC believes that large corporations like itself have both a social and economic purpose. They represent a coalition of interests, namely those of the shareholders, other providers of capital, business associates and employees. This belief therefore casts a responsibility of trusteeship on the Company's Board of Directors. They are to act as trustees to protect and enhance shareholder value, as well as to ensure that the Company fulfils its obligations and responsibilities to its other stakeholders. Inherent in the concept of trusteeship is the responsibility to ensure equity, namely, that the rights of all shareholders, large or small, are protected.

Transparency:

ITC believes that transparency means explaining Company's policies and actions to those to whom it has responsibilities. Therefore transparency must lead to maximum appropriate disclosures without jeopardizing the Company's strategic interests. Internally, transparency means openness in Company's relationship with its employees, as well as the conduct of its business in a manner that will bear scrutiny. We believe transparency enhances accountability.

Empowerment and Accountability:

Empowerment is an essential concomitant of ITC's first core principle of governance that management must have the freedom to drive the enterprise forward. ITC believes that empowerment is a process of actualizing the potential of its employees. Empowerment unleashes creativity and innovation throughout the organization by truly vesting decision-making powers at the most appropriate levels in the organizational hierarchy.

ITC believes that the Board of Directors are accountable to the shareholders, and the management is accountable to the Board of Directors. We believe that empowerment, combined with accountability, provide an impetus to performance and improves effectiveness, thereby enhancing shareholder value.

Control:

ITC believes that control is a necessary concomitant of its second core principle of governance that the freedom of management should be exercised within a framework of appropriate checks

and balances. Control should prevent misuse of power, facilitate timely management response to change, and ensure that business risks are pre-emptively and effectively managed.

Ethical Corporate Citizenship:

ITC believes that corporations like itself have a responsibility to set exemplary standards of ethical behavior, both internally within the organization, as well as in their external relationships. We believe that unethical behavior corrupts organizational culture and undermines stakeholder value.

Conclusion

Ethics in business is necessary. Business does not operate in a vacuum. Firms and corporations operate in the social and natural environment.

Because of Irrespective of the demands and pressures upon it, business by virtue of its existence is bound to be ethical for at least two reasons: one, because whatever the business does affects its stakeholders and two, because every moment of action has courses of ethical as well as unethical paths wherein the existence of the business is justified by ethical alternatives it responsibly chooses.

As Indian companies compete globally for access to capital markets, many are finding that the ability to benchmark against world-class organizations is essential. For a long time, India was a managed, protected economy with the corporate sector operating in an insular fashion. But as restrictions have eased, Indian corporations are emerging on the world stage and discovering that the old ways of doing business are no longer sufficient in such a fast-paced global environment.

If corporate Governance has to take root in a country it will, to a large extent depend on the economic and business environment that has been created by public government in the country. There cannot be good corporate Governance if public governance is week. Development of norms and discipline are a critical initial step to corporate governance. The bigger plea in India, however, lies in a correct doing of those manners during a belligerent level. More and some-more it appears that outward agencies like analysts and batch markets have a many change on a actions of managers in a heading companies of a country. But their change is limited to a few tip companies. More needs to be finished to safeguard adequate corporate. Even a many advantageous norms can be burned in a complement tormented with widespread corruption. Nevertheless, with attention organizations and chambers of commerce themselves pulling for a softened corporate governance system, a destiny of corporate governance in India promises to be clearly softened than a past.

References:

http://www.ongcindia.com/corpgov.asphttp://www.itcportal.com/about-itc/itc-values/corporate-governance.aspxwww.wikipedia.orghttp://barandbench.com/brief/1/639/the-need-for-improvement-in-indian-corporate-governance-practices-part-ihttp://www.corpgov.deloitte.com/site/in/board-of-directors/ethics-compliance/www.google.com

Business ethics: concepts and cases- velasquez.