A Comparitive Study of Corporate Governance in India and Companies Around the World

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A COMPARITIVE STUDY OF CORPORATE GOVERNANCE IN INDIA AND COMPANIES AROUND THE WORLD SHAKTI SINGAL-2010A58 DIVYA CHADHA-2010A60 UJJWAL SINGH -2010A62

Under the Guidance of MR.SHREEDHAR BHAT

SYMBIOSIS CENTRE FOR MANAGEMENT AND HUMAN RESOURCE DEVELOPMENT, SYMBIOSIS INTERNATIONAL UNIVERSITY

ACKNOWLEDMENT

This project would not have been possible without the help and support of Mr. Shreedhar Bhat, our mentor for the project. Our deepest gratitude goes out to him for guiding us at various stages with attention and care. He has taken pain to go through our project and make the necessary changes when required. We extend our thanks to Prof. K. S. Subramanian - Director, SCMHRD for extending his support to us. We would also thank our institute and our faculty members without whom this project would have been a distant reality, and a deep sense of gratitude goes out to our friends and family for their constant support and love.

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TABLE OF CONTENTS Serial No. 1 Particulars Page No.

Introduction  Definition of Corporate Governance

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Literature Review  Basic Structure  Corporate Governances roles and responsibilities  Benefits of Corporate Governance  Corporate Governance in India  Background of Corporate Governance in India  Changes since liberalization  Corporate Governance in Indian Banks  Corporate Governance in Public Sector Units in India  Corporate Governance in Private Sector Units in India 1. ITC 2. Bajaj Auto ltd 3. Hindustan Unilever

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3. Analysis and Conclusion  Shortcomings of Corporate Governance practices in India as compared to other developed Countries  Comparison of Corporate Governance Practices followed in India and China  Comparison of Corporate Governance Practices followed in India and US  Comparison of Corporate Governance Practices followed in India and 6 other Asian Countries  Comparison of Corporate Governance Practices in India and OECD  Comparison of Corporate Governance Practices followed in India and UK  Comparison of Corporate Governance Practices followed in India and Japan 4. References 16 16 17 18 19 20 21 22 23

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1. INTRODUCTION
CORPORATE GOVERNANCE
The concept of corporate governance, which emerged as a response to corporate failures and widespread dissatisfaction with the way many corporates function, has become one of the wide and deep discussions across the globe recently. It primarily hinges on complete transparency, integrity and accountability of the management. There is also an increasingly greater focus on investor protection and public interest. Corporate governance is concerned with the values, vision and visibility. It is about the value orientation of the organisation, ethical norms for its performance, the direction of development and social accomplishment of the organisation and the visibility of its performance and practices.

Definition
“Corporate governance refers to the structures and processes for the direction and control of companies. Corporate governance concerns the relationships among the management, board of directors, controlling shareholders, minority shareholders and other stakeholders. Good corporate governance contributes to sustainable economic development by enhancing the performance of companies and increasing their access to outside capital”. This definition focuses on three key elements: - Direction refers to all the decisions that relate to setting the overall strategic direction of the company such as: (i) long-term strategic decisions; (ii) large-scale investment decisions; (iii) mergers and acquisitions; and (iv) Succession planning and appointment of key senior managers, such as the CEO of the company. - Control refers to all the actions necessary to oversee the management’s performance and follow up on the implementation of the strategic decisions set above. - Relationship among the main governing bodies of the firm refers to the interactions among the...
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