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Business environment PPT PRESENTATION Team-6.pptx
- 1. Business environment CSR at bankof India Corporate Governance Problems in corporate governance
- 2. What is corporatesocial responsibility? • Corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. CSR is generally understood as being the way through which a company achieves a balance of economic, environmental and social imperatives (“Triple-Bottom-Line- Approach”), while at the same time addressing the expectations of shareholders and stakeholders. In this sense it is important to draw a distinction between CSR, which can be a strategic business management concept, and charity, sponsorships or philanthropy. Even though the latter can also make a valuable contribution to poverty reduction, will directly enhance the reputation of a company and strengthen its brand, the concept of CSR clearly goes beyond that. • Promoting the uptake of CSR amongst SMEs requires approaches that fit the respective needs and capacities of these businesses, and do not adversely affect their economic viability. UNIDO based its CSR programmed on the Triple Bottom Line (TBL) Approach, which has proven to be a successful tool for SMEs in the developing countries to assist them in meeting social and environmental standards without compromising their competitiveness. The TBL approach is used as a framework for measuring and reporting corporate performance against economic, social and environmental performance. It is an attempt to align private enterprises to the goal of sustainable global development by providing them with a more comprehensive set of working objectives than just profit alone. The perspective taken is that for an organization to be sustainable, it must be financially secure, minimize (or ideally eliminate) its negative environmental impacts and act in conformity with societal expectations.
- 3. Keys take away: •Corporate social responsibility is a business model by which companies make a concerted effort to operate in ways that enhance rather than degrade society and the environment. • CSR helps both improve various aspects of society as well as promote a positive brand image of companies. • Corporate responsibility programs are also a great way to raise morale in the workplace. • CSRs are often broken into four categories: environmental impacts, ethical responsibility, philanthropic endeavors, and financial responsibilities. • Some examples of companies that strive to be leaders in CSR include Starbucks and Ben & Jerry's.
- 4. Understanding Corporate Social Responsibility(CSR): • Corporate social responsibility is a broad concept that can take many forms depending on the company and industry. Through CSR programs, philanthropy, and volunteer efforts, businesses can benefit society while boosting their brands. • For a company to be socially responsible , it first needs to be accountable to itself and its shareholders. • Companies that adopt CSR programs have often grown their business to the point where they can give back to society. Thus, CSR is typically a strategy that's implemented by large corporations. After all, the more visible and successful a corporation is, the more responsibility it has to set standards of ethical behavior for its peers, competition, and industry.
- 5. CSR AT BANKIN INDIA
- 6. CSR AT BANKIN INDIA • Corporate social responsibility (CSR) refers to strategies that Corporations or firms employ to conduct their business in a way that is ethical, society friendly and beneficial to community in terms of development.
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- 8. CSR RULES IN INDIA TheCompanies Act, 2013 provides for CSR under section 135. Thus, it is mandatory for the companies covered under section 135 to comply with the CSR provisions in India. Companies are required to spend a minimum of 2% of their net profit over the preceding three years as CSR.
- 9. Introduction • Corporate socialresponsibility is a broad concept that can take many forms depending on the company and industry. • Through CSR programs, philanthropy, and volunteer efforts, businesses can benefit society while boosting their brands. 20XX 9
- 10. Types of CSR Thereare lots of CSR practices that banks can implement, from going paperless and issuing eco-friendly debit cards, to investing in non-profit organizations that are fighting climate change and making a difference in local communities. The 4 main types of CSR activities banks can practice are: 1.Environmental 2.Ethical 3.Philanthropic 4.Economic 10
- 11. CSR at Bankof India Bank of India believes that it is its foremost duty to contribute towards impacting the lives of various stakeholders like customers, employees, shareholders, communities and environment in a positive manner through all aspects of its operations, thereby serving the interest of the society at large. The Bank intends to be in step with the new thought of measuring performance on the basis of economic impact, social impact, and environmental impact in the task of inclusive growth, through Banking operations, towards the larger canvas of Nation building. 11
- 12. CSR at Bankof India Assistance under Corporate Social responsibility has gained much importance after inclusion of new provisions in Companies Act ,2013 .The provisions of spending 2% of average profit during last 3 financial years is not applicable to Bank of India, it being established under Banking companies (Acquision & Transfer of Undertakings )Act 1970 and not under Companies Act. However Bank of India is committed to assist under CSR for enrichment of environment and society on a sustainable basis. 20XX 12
- 13. Some of theCSR initiatives already undertaken by the Bank are providing • Construction of Toilets for schools under Swacch Bharat Abhiyan. • Solar streat lights and Hand pump sets in Rural areaas. • Rain water harvesting mechanism / equipments agriculture / drinking water / development of the area. • Ambulances to Hospitals catering to economically challenged sections of the society, rural areas, etc.. • Ultra-modern medical equipments to Family Planning Centres and other hospitals. • Wheel chairs to physically challenged sportspersons and others. • Assistance for creating awareness against cancer and help for cancer patients. • Construction of classrooms / providing school kits for the economically challenged students of the society. 13
- 14. • Support toorphaned / blind / differently able students / persons. • Vehicles for institutions providing food / mid-day meal to government /local bodies schools catering to poorer sections of the society. • Contribution to Relief Funds for assistance of people affected by natural calamities. 14
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- 16. • Corporate Governanceis the application of best management practices, compliance of law in true letter and spirit and adherence to ethical standards for effective management and distribution of wealth and discharge of social responsibility for sustainable development of all stakeholders. • Conduct of business in accordance with shareholders desires (maximising wealth) while confirming to the basic rules of the society embodied in the Law and Local Customs
- 17. Corporate Governance : Relationshipsamong various participants in determining the direction and performance of a corporation. • Effective management of relationships among - Shareholders - Managers,Board of directors,employees,Customers ,Creditors - Suppliers - community
- 18. Why Corporate Governance? •Better access to external finance • Lower costs of capital - interest rates on • loans Improved company performance - sustainability • Higher firm valuation and share performance • Reduced risk of corporate crisis and scandals
- 19. Four Pillars of Corporate Governanc e • Accountability •Fairness •Transparency • Independence
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- 21. TRANSPARENCY: Transparency is anessential component at all levels of operation in a business entity; especially at the top management level, where major decisions are made and where major plans are formulated. Keeping the investors and other stakeholders informed helps build a relationship of trust and solidarity that results in the rewards of a higher valuation and easy access to funding.
- 22. ACCOUNTABILITY: Accountability, in essence,means a willingness or an obligation to accept responsibility for one’s actions. Accountability is generally looked at from a negative viewpoint and misconstrued by many who think it is associated with the traditional “Blame Game”. In reality, accountability answers more questions than just the one regarding who the responsible person is. It has to be looked at from a positive standpoint as well because it recognises accomplishments too.
- 23. INDEPENDENCE: It allows theperson to act with integrity and make decisions and form judgments bearing in mind the best interests of the stakeholders. This is the reason companies appoint independent directors, so as to ensure that there is no force of hand being used or that the director does not have any personal interests with the company thereby hampering his ability to make decisions freely.
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- 25. What is Co-operativegovernance? Corporate governance is the system of rules, practices, and processes by which a firm is directed and controlled. Corporate governance essentially involves balancing the interests of a company’s many stakeholders, such as shareholders, senior management executives, customers, suppliers, financiers, the government, and the community. • Since corporate governance provides the framework for attaining a company’s objectives, it encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure
- 26. Easy understanding ofcooperative governance Corporate governance is the structure of rules, practices, and processes used to direct and manage a company. A company’s board of directors is the primary force influencing corporate governance. Bad corporate governance can cast doubt on a company’s operations and its ultimate profitability. • Corporate governance covers the areas of environmental awareness, ethical behaviour, corporate strategy, compensation, and risk management.
- 28. HOW TO ASSESSCORPORATE GOVERNANCE? You can research certain areas of a company to determine whether or not it's practicing good corporate governance. These areas include: • Disclosure practices • Executive compensation structure • Risk management • Policies and procedures for reconciling • conflicts of interest
- 29. • The membersof the board of the directors • Contractual and social obligations • Relationships with vendors • Complaints received from shareholders and how they were addressed • Audits Types of bad governance practices include: • Companies that do not cooperate sufficiently with auditors or do not select auditors with the appropriate scale, • Bad executive compensation packages • Poorly structured board
- 30. Examples of CorporateGovernance: A company that has consistently practiced good corporate governance and seeks to update it often is PepsiCo. In drafting its 2020 proxy statement, PepsiCo sought input from investors in six areas: • Board composition, diversity, and refreshment, plus leadership structure • Long-term strategy, corporate purpose, and sustainability issues • Good governance practices and ethical corporate culture • Human capital management • Compensation discussion and analysis • Shareholder and stakeholder engagement
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- 32. • Board Structure •Board’s role in Governance • Dynamics and Functioning • Financial Reporting Process, Internal controls, Risk Management PARAMETERS OF BOARD EVALUATION
- 33. • Develop anevaluation form. • Identify performance measures. • Set guidelines for feedback. • Create disciplinary and termination procedures. • Set an evaluation schedule. Steps of Performance Evaluation:
- 34. • Business StrategyGovernance • Monitoring Role • Supporting and Advisory Role • The Chairperson’s Role The evaluation of the performance of the Boards is essentially an assessment of how the Board has performed on all these parameters. Factors Depending For Performance:
- 35. Transparency in Corporate Governance: Organizationsshould clarify and make publicly known the roles and responsibilities of the board and management to provide stakeholders with a level of accountability. They should also implement procedures to independently verify and safeguard the integrity of the company’s financial reporting. 35
- 36. General Data Protection Regulation(GDPR): Comprehensive assessment of whether the company’s operations are compliant with the GDPR requirements, performed in cooperation with Deloitte’s experienced IT professionals to identify existing risks and to provide recommendations on the most appropriate methods of their elimination or migration 36
- 37. Structure of Corporate Governance: TheStructure of Corporate Governance determines the distribution of rights and responsibilities between the different parties in the organization and sets decision- making rules and procedures. It is usually up to the management board to decide how the company will develop. 37
- 38. Internal Conflict incorporate Governance: A conflict is defined as a sharp opposition or disagreement of ideas or interests. Conflict is known to be a common phenomenon at the workplace and has ironically been termed a “part of doing business”. Sources of Conflict: Conflicts emanate from numerous sources in the workplace. Here are just a few major sources. • Poor Communication • Diverse values • Differing interests • Resource scarcity • Personality clashes,Poor Performance 38
- 39. Selection Procedure interm of Board - Vaishnaavi.R • The board of directors is the primary direct stakeholder influencing corporate governance. Directors are elected by shareholders or appointed by other board members. They represent shareholders of the company. • The board is tasked with making important decisions, such as corporate officer appointments, executive compensation, and dividend policy. • In some instances, board obligations stretch beyond financial optimization, as when shareholder resolutions call for certain social or environmental concerns to be prioritized.
- 40. Five Basic Steps •For both family and independent directors, the steps in the search process are the same: • Select a nominating committee • Specify candidate qualifications • Identify potential candidates • Screen, select, and recommend candidates • Nominate candidates for election by the shareholders
- 41. Done by: • Shriraam N S-22BBA051 • Sridhar M-22BBA054 • Subrith-22BBA055 • Sudarsana Baalaji N –22BBA056 • Suhail Ahmed –22BBA058 • Tharani -22BBA059 • D.Thumilan-22BBA060 • Vaishnaavi N -22BBA061 • Vidarshana -22BBA062 • Vishnu sree-22BBA065