Dr. KUMAR GUIDANCE

CORPORATE SOCIAL RESPONSIBILITY Is a business model for self regulating that helps a company be socially accountable — to itself, its stakeholders, and the public. Is a business model for self regulating that helps a company be socially accountable — to itself, its stakeholders, and the public Is a business model for self regulating that helps a company be socially accountable — to itself, its stakeholders, and the public. Is a business model for self regulating that helps a company be socially accountable — to itself, its stakeholders, and the public. Is a business model for self regulating that helps a company be socially accountable — to itself, its stakeholders, and the public. Is a business model for self regulating that helps a company be socially accountable — to itself, its stakeholders, and the public.

THE PHILOSOPHICAL FOUNDATIONS OF CORPORATE GOVERNANCE    In the wake of the financial and corporate scandals of recent years, corporate governance is increasingly recognized as the core of understanding how and why companies are managed as they are. There are many ways of defining Corporate Governance, ranging from narrow view of relationship between company and its shareholders to broader view that focuses on all stakeholders.   SOME OF THESE MODELS HAVE BEEN POINTED BELOW: Agency Theory Stewardship Theory Stakeholders Theory Transaction Cost Theory   Political Theory Resource Dependency Theory   Sociological or Social contract Theory Legitimacy theory  Managerial hegemony theory

Pillars of Corporate Governance 1. Fairness 2. Transparency 3. Accountability 4. Responsibility 5. Protection 6. Growth 7. Compliance

  Chaired by Sir Adrian Cadbury   Set up in May 1991 by FRC, the Stock Exchange of London & the accountancy profession. The impetus for the creation of the Committee was a growing lack of investor confidence in the honesty and responsibility of listed companies.   Caused in particular by the sudden financial collapse of two companies .[ wallpaper group Coloroll and Asil Nadir's Polly Peck consortium] The final report 'The financial aspects of corporate governance' (usually known as the Cadbury Report) was published in December 1992 and contained a number of recommendations to raise standards in corporate governance. The central components of this voluntary code, the Cadbury Code, identifies three themes : ü   The structure and responsibilities of boards of directors. ü   The role of auditors and recommendations to the accountancy profession, and ü   The rights and responsibilities of shareho...

DEVELOPMENT OF CORPORATE GOVERNANCE CODE IN UNITED KINGDOM 1992: The Cadbury Committee Focused Area ü   The structure and responsibilities of boards of directors. ü   The role of auditors and recommendations to the accountancy profession, and ü   The rights and responsibilities of shareholders 1995: The Greenbury Committee Focused Area ü   Director’s remuneration and Compensation Package. ü   There should be balance between Salary, Performance and Bonus of the directors. ü   Remuneration Committees made up of non-executive directors. ü   Full disclosure of each executive's pay package and that shareholder is required to approve them.  1998: The Hampel Report Focused Area ü   The Chair of the board should be seen as the "leader" of the non-executive directors; ü   Institutional investors should consider voting the shares they held at meetings, though rejected compulsory voting; and ...

Historical Development of Corporate Governance in United Kingdom: The impetus for development in corporate governance arose from a number of events including. Black Monday, 19 October 1987 Polly-Peck, 1990 The Collapse of BCCI 1991, and The UK’S own Corporate Responsibility Scandal relating to the mirror group and its owner, Robert Maxwell also referred as Pension Scandal. Further a wave of scandals and financial collapses were visualized in the late 1980’s and early 90’s which were the result of inefficient and insufficient practices of governance and principles. The absence of proper structure and objectives in the top management led to numerous corporate failures, which was affecting the shareholders and other interested parties. This led the UK government to set up the revolutionary Cadbury committee report on the financial aspects of corporate governance in the early 1990s. The committee submitted its report and code of best practice in 1992, aimed at all ...