This document discusses corporate governance practices at ONGC and Wells Fargo. It provides an overview of both companies and their products/services. For ONGC, it describes the principles and need for corporate governance in India. It outlines ONGC's governance structure and focus on compliance, transparency, and shareholder rights. The document also discusses ONGC's awards for governance and CSR initiatives in healthcare, education and infrastructure. For Wells Fargo, it summarizes the 2016 account fraud scandal where employees opened millions of unauthorized accounts, resulting in lawsuits, fines and management/branch restructuring. Both companies aim to improve practices and rebuild trust following governance issues.

1. Corporate Governance (ONGC and
wells Fargo)
Submitted By:
Deepak Patel(66029)
Kuldeep Jonjare(66050)
Submitted to:
Dr. Pratima Jain
Institute of Management Studies DAVV Indore

2. Introduction
Corporate governance is the combination of rules,
processes or laws by which businesses are operated,
regulated or controlled. The term encompasses the
internal and external factors that affect the interests of a
company's stakeholders, including shareholders,
customers, suppliers, government regulators and
management.

3. Principles of
Corporate
Governance






Rights and equitable
treatment of shareholders.
Interests of other
stockholders.
Roles and responsibilities
of the board.
Intergity and ethical
behaviour.
Transparent disclosure.
Good board practices.

4. Need for corporate Governance- at a
glance
a.
b.
c.
d.
e.
f.
g.
Wide spread of shareholders.
Changing ownership structure.
Coprorate scams or scandals.
Greater expectations of society of the coprorate
sector.
Hostile takeovers.
Huge increase in compensation of top management.
Globalisation.

5. ONGC (Company overview)
Oil and Natural Gas Corporation Limited (ONGC) is an
Indian multinational oil and gas company
headquartered in Dehradun, India. It is a Public Sector
Enterprises (PSE) of the Government of India, under
the administrative control of the Ministry of Petroleum
and Natural Gas.

6. Product and services
Maharatna ONGC is the largest crude oil and natural gas
Company in India, contributing around 75 per cent to
Indian domestic production. Crude oil is the raw material
used by downstream companies like IOC, BPCL.

7. Coprorate Governance at ONGC
The companylists the
following objectives
as a driving factor for
corporate
governance within
the firm:
1.
2.
Compliance of law,
rules & regulations in
true letter and spirit.
Independent
verification of the
Company’s financial
reporting.

8. 3. A sound system of
internal control to mitigate
the risks for achievement
of
business objectives both
short term and long term.
4. A clear delineation of
shareholders’ rights.
5. Clearly defined
standards against which
performance of
responsibilities can be
measured.
6.Accuracy and
transparency in
disclosure regarding
Financial position.

9. Elements of
CG report
As per the disclosure
agreement prescribed
by the DPE (
Department of Public
enterprises) under
clause 49
, The detailed
corporate Governance
report of ONGC
encompasses the
following information:
•
•
•
•
•
•
•
Board of directors
Straightegy meet & conclave.
Vichar vishleshan.
Annual general meetings.
Shareholding pattern
Shareholders info.
Disclosures

10. •
•
•
•
•
•
•
Share transfer system
Dematerialization of shares and
liquidity
Risk management
Secretarial compliance report.
Guidelines on corporate
Governance by DPE.
Compliance certificate of auditors.
Finance manual

11. Awards and accolades.



Over the years ONGC has been consistently recognized
as one of the best firms in India that follow the best
practices for stakeholders’ welfare through corporate
governance.
the company was conferred the "ICSI National Award
for Excellence in Corporate Governance’ in the public
sector."
The company has engaged in active socio-economic
activities for the development of its community

12. Corporate Social Responsibility in
ONGC
- As a public sector enterprise,ONGC has a long and charised
tradition of commendable initiatives, institutionalized
programs and practices of corporate Social Responsibility
which have played laudable role in the development of
several underdeveloped regions of the country.

13. CSR focus areas of ONGC
- Education including. - sponsership of seminar,
vocational courses. Workshops , conclaoetc.
- Health care
-Promoting sports persons. - Infrastructure support near
ONGC operational areas.

14. CSR Spending(Ranking of ONGC)

15. Major CSR
projects
•
•
•
ONGC as a leading maharatna company
of the nation has set a benchmark
countinuesly for the last 2 years by
achieving 100% utilisation of CSR
budget which has been to tune of over
₹500cr each year.
A 300 bed Multi-Speciality for the
underprivileged in shibsagar ,Assam.
An exclusive door step madical facility
for elderly people.
ONGC MRPL lady Goshen hospital ,
Mangalore.

16. Wells Fargo (Company
overview)
•
•
Wells Fargo & Company is an American multinational
financial services company headquartered in San
Francisco, California, with central offices throughout
the United States.
It is the world's fourth-largest bank by market
capitalization. Fargo is ranked number 26 on the 2018
Fortune 500 rankings of the largest US corporations by
total revenue.

17. Product and services
- Assets management - Banking
- Brokerage services. - Commodities
- credit cards. - Finance & Insurance
- Foreign currency exchange. - equities trading
- wealth Management. - Futures & option
- Treasurer and Trading
security Services

18. Wells Fargo account fraud scandal


The Wells Fargo account fraud scandal is an ongoing
controversy brought about by the creation of millions
of fraudulent savings and checking accounts on
behalf of Wells Fargo clients without their consent.
News of the fraud became widely known in late 2016

19. Effects of the Scandal.
On
Wells Fargo
Management
•
•
•
The bank fired approximately 5300
employees between 2011 and 2016
as a result of fraudulent sales
After earnings were reported in
January 2017, the bank announced
it would close over 400 of its
approximately 6000 branches by
the end of 2018.
The bank experienced decreased
profitability in the first quarter after
the news of the scandal broke

20. Wells Fargo
Costs
•
•
The CFPB fined Wells Fargo $100
million in September 8, 2016 for the "
widespread illegal practice of
secretly opening unauthorized
accounts." The order also required
Wells Fargo to pay an estimated
$2.5 million in refunds to customers
and hire an independent consultant
to review its procedures.
Wells Fargo incurred additional
costs due to refunds and lawsuits

21. On
Consumers
•
•
Approximately 85,000 of the
accounts opened incurred fees,
totaling $2 million. Customers'
credit scores were also likely hurt by
the fake accounts.
The bank agreed to settle for $142
million with consumers who had
accounts opened in their names
without permission in March 2017.
[37][38] The money repaid fraudulent
fees and paid damages to those
affected

22. References
•
•
•
•
•
WellsFargo.com
Wikipedia.org
The wells Fargo cross selling scandal -
Stanford GSB , Stanford University.
Ongcindia.com
Shodhganga.inflibnet.ac.in/Corporate
Governance in the selected CPSEs.