Any meaningful organization has certain mission, objective(s) and goal(s) and a strategy to achieve them. Business environment consists of all those factors that have a bearing on the business, such as the strengths, weaknesses, internal power relationships and orientations of the organization, government policies and regulations, nature of economy and economic conditions, socio-cultural factors, demographic trends, natural factors, global needs and cross-border developments.
Business is an integral part of the social system. Social system influences business, which in turn is affected by the business.
Corporate governance is concerned with holding the balance between economic and social goals and between individual and commercial goals. The governance framework (that creates policies) is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. The aim is to align as nearly as possible the interests of individuals, corporations and society. The incentive to corporations and to those who own and manage them to adopt internationally accepted governance standards is that these standards will help them to achieve their corporate aims and to attract investment. The initiative for this adoption by states is that these standards will strengthen the economy and discourage fraud and mismanagement. The foundation of any structure of corporate governance is disclosure. Openness is the basis of public confidence in the corporate system, and funds will flow to the centers of economic activity that inspires trust.
My exposure to two corporate cultures, seven years with Andhra Steel Corporation Limited, a public limited company and 20 years with Manipal Hospital, corporate hospital managed by Manipal Health Enterprise Private Limited, had given me glimpse in corporations functioning.
For five years I worked as officer taking care of...