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CP Knowledge: Lecture on CG NIRC ICSI

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CP Knowledge: Lecture on CG NIRC ICSI

  1. 1. Corporate Excellence through Corporate Governance Pavan Kumar Vijay Immediate Past President, ICSI MD, Corporate Professionals
  2. 2. <ul><li>Corporate Governance rests with the Vision and Perception of the Leadership </li></ul>
  3. 3. <ul><li>and </li></ul><ul><li>A Leader need to adopt a </li></ul><ul><li>Vision for Corporate Governance </li></ul>
  4. 4. The Institute of Company Secretaries of India ” Corporate Governance is the adherence to ethical standards for effective management and distribution of wealth and discharge of social responsibility Corporate Governance application of best management practices, compliance of law in letter and spirit and for sustainable development of all stakeholders”
  5. 5. Corporate Governance Framework Output – Input = Wealth Created ? Sustainability Happiness and Prosperity of all Stakeholders Reinvestment Distribu- tion <ul><li>Research and </li></ul><ul><li>Development </li></ul><ul><li>HR Development </li></ul><ul><li>Infrastructure </li></ul><ul><li>Risk Management </li></ul><ul><li>SUPPLIERS </li></ul><ul><li>Adequate Returns </li></ul><ul><li>HUMAN ASSETS </li></ul><ul><li>Adequate </li></ul><ul><li>Remuneration </li></ul><ul><li>CUSTOMERS </li></ul><ul><li>Affordable Prices </li></ul><ul><li>PUBLIC </li></ul><ul><li>Payment of Taxes and Partnership in National Development Projects </li></ul>Wealth Creation Wealth Management Wealth Sharing Enhanced Capabilities Best Management Practices are Vital Here Law and Ethics are Vital Here
  6. 6. Stakeholders in Value Chain SUPPLIERS CUSTOMERS HUMAN RESOURCE Supply Funds, Materials and Services Value Addition and Management of Resources Give Opportunity to Co. to Satisfy their Needs Adequate Returns for Funds, Material and Services Supplied Adequate Salary and Security for leading a Happy Life Best Quality Products and Customer Care at Minimum Prices ROLE OF STAKEHOLDERS EXPECTATIONS OF STAKEHOLDERS Potential Suppliers, Human Resources and Customers Biological, Economic and Cultural Environment PUBLIC PUBLIC EXPECTS PARTNERHIP FOR SUSTAINABLE DEVELOPMENT
  7. 7. Principles of Corporate Excellence Fairness to all stakeholders Mutual Trust, Transparency and Togetherness Unrestricted Communication and Continuous Feedback Sharing Knowledge, Success Stories and Experience Sharing Happiness and Concerns Helping Each Other – Round the Clock
  8. 8. Infact, these principles are the foundation of Best Governed Organisations irrespective of their form and size
  9. 9. <ul><li>Advantages of applying </li></ul><ul><li>Best Corporate Governance Practices </li></ul>
  10. 10. <ul><li>Growth </li></ul>Growing Revenues Growing Profits Growing Market Value
  11. 11. <ul><li>Widespread Goodwill and Brand Reputation </li></ul>Access to Global Markets Better Access to Human Capital Ready Market for New Products Widening Customer Base
  12. 12. <ul><li>Enhanced Trust and Confidence of all Stakeholders </li></ul>EMPLOYEES INVESTORS CUSTOMERS SUPPLIERS GOVERNMENT AND REGULATORS SOCIETY
  13. 13. <ul><li>Leading to… </li></ul>
  14. 14. Environment Civil Society Business Society SUSTAINABLE DEVELOPMENT
  15. 15. <ul><li>Commitment to well-being and progress of all stakeholders is our age old mantra </li></ul>
  16. 16. Satyam Vada Dharmam Chara - Taittariya Upanishad
  17. 17. <ul><li>“ Forever speak the truth and follow the dharma ” </li></ul>
  18. 18. <ul><li>Truth : Disclosure of Actual State of Affairs (Transparency in operations and transactions) </li></ul>
  19. 19. <ul><li>Dharma : “Dharma is for the stability of society, the maintenance of social order and the general well-being and progress of humankind .” </li></ul><ul><li>- Karna Parva of the Mahabharata. Verse-58 in Chapter 69 </li></ul>
  20. 20. Governance Concept in ‘Ramayana’ <ul><li>To provide “the maximum happiness for the maximum number of people for the maximum period, based on the principles of Dharma – righteousness and moral values.” </li></ul>- Ayodhya Kand
  21. 21. <ul><li>“ The Customer is King” </li></ul>- Mahatma Gandhi
  22. 22. <ul><li>This is the soul behind modern </li></ul><ul><li>Marketing Management </li></ul>
  23. 23. Worshipping 33 Crore Godheads signifying various species, plants, cosmic elements, …
  24. 24. <ul><li>Care for Panchtatvas - Prithvi , Jal , Vaayu , Akaash and Agni that make a human being </li></ul>
  25. 25. <ul><li>This is our approach to </li></ul><ul><li>Environment Protection </li></ul>
  26. 26. The four essential principles of Mahatma Gandhi's philosophy Truth , Ahimsa , Trusteeship and Constructive Action
  27. 27. <ul><li>Corporates are also expected to use their </li></ul>Capacity, Knowledge and Resources Maximisation of stakeholders’ value and well-being and progress of humankind TOWARDS THROUGH Transparency, accountability and truthful disclosure of state of affairs Dharma Truth
  28. 28. <ul><li>This is our own age old mantra of </li></ul><ul><li>Good Governance </li></ul>
  29. 29. <ul><li>Companies that have followed these </li></ul><ul><li>principles of </li></ul><ul><li>Corporate Governance </li></ul><ul><li>have </li></ul>
  30. 30. <ul><li>Consistently earned high returns, </li></ul><ul><li>increased their net worth and </li></ul><ul><li>enhanced their shareholders wealth </li></ul>
  31. 31. <ul><li>Invested significantly in proactive research and development </li></ul>
  32. 32. <ul><li>Developed people into ‘ achievers’ than just ‘ performers’ </li></ul>
  33. 33. <ul><li>Dealt ethically with customers, government and business partners </li></ul>
  34. 34. <ul><li>Maintained and updated their professional management culture, system and processes </li></ul>
  35. 35. <ul><li>..and accomplished </li></ul>
  36. 36. WINNING EMPLOYEES XCELLENCE GROWING INVESTORS DELIGHTED CUSTOMERS TRUSTED SUPPLIERS SATISFIED GOVERNMENT AND REGULATORS HAPPY SOCIETY
  37. 37. <ul><li>Leaders need to strive for excellence in Corporate Governance because </li></ul>Corporate Excellence and Professional Accountability For Better Leadership
  38. 38. Excellence in Corporate Governance Corporate Excellence Social Excellence National Excellence Excellence in Corporate Governance leads to National Excellence
  39. 39. <ul><li>Professionals </li></ul><ul><li>are acting </li></ul><ul><li>as </li></ul><ul><li>Catalyst </li></ul><ul><li>in applying </li></ul><ul><li>best practices in </li></ul><ul><li>Corporate Governance </li></ul>
  40. 40. <ul><li>Professionals are adequately developed to take this challenging job </li></ul>
  41. 41. <ul><li>We all Professionals must also bind ourselves by a </li></ul><ul><li>Code of Conduct </li></ul>
  42. 42. <ul><li>Thus ensuring highest level of </li></ul>Integrity Independence Excellence Innovation
  43. 43. <ul><li>Opportunities to serve the Nation are unlimited </li></ul>
  44. 44. <ul><li>Understand Industry Needs </li></ul><ul><li>Gain ‘Substantial Knowledge of Management’ – Learning little more than what is included in the course curriculum </li></ul><ul><li>Provide PQRS – P roductivity, Q uality, R eliability and S ervice </li></ul><ul><li>Use 3Cs - C reativity, C onfidence and C ommunication </li></ul><ul><li>Conduct Periodical SWOT Analysis of Self </li></ul><ul><li>Use Technology to Beat Technology </li></ul>All you need to do is:
  45. 45. Gain Knowledge of Industry MEDIA AND ENTERTAINMENT INFRASTRUCTURE, POWER AND TELECOM IT SOLUTIONS IT ENABLED SERVICES AND BPO TEXTILES TOURISM AND HOTEL CAPITAL MARKET AND ITS INTERMEDIARIES HOUSING AND CONSTRUCTION FMCG AGRICULTURE AND FOOD PROCESSING CAPITAL GOODS DRUGS, PHARMA AND HEALTHCARE BANKING AND NBFCS FINANCIAL SERVICES
  46. 46. Gain Knowledge of Management Functions CORPORATE COMMUNICATION STRATEGY SECRETARIAL AND LEGAL FINANCIAL AND ACCOUNTS HUMAN RESOURCES INFORMATION TECHNOLOGY MARKETING R&D AND PRODUCTION
  47. 47. <ul><li>P roductivity – Nation expects you to use resources in most profitable manner </li></ul><ul><li>Q uality – There is no compromise on quality </li></ul><ul><li>R eliability – Companies require trust in abilities and loyalty to company all the time </li></ul><ul><li>S ervice – Value Added Services with courtesy and smile is absolute necessity </li></ul>Providing PQRS
  48. 48. <ul><li>C reativity – Innovation is the critical success factor </li></ul><ul><li>C onfidence – Believe in Yourself (Yes, You Can Do It) </li></ul><ul><li>C ommunication – It is how you make people know about your creativity and confidence. It is Communication that creates opportunities. </li></ul>Using 3Cs
  49. 49. <ul><li>S trengths: What are my strengths? </li></ul><ul><li>W eaknesses: What are my weaknesses? </li></ul><ul><li>O pportunities: What are new opportunities? </li></ul><ul><li>T hreats: What are new threats? </li></ul>So that you can CHANGE with the TIME Periodical SWOT Analysis
  50. 50. <ul><li>Internet and E-commerce </li></ul><ul><li>Enterprise Resource Planning (ERP) </li></ul><ul><li>ERP and CRM Tools for Practicing Consultants </li></ul><ul><li>Data Warehousing and Data Mining </li></ul><ul><li>Computer Based Complex Business Analysis Models </li></ul><ul><li>There are many more... </li></ul>Use Technology to Beat Technology
  51. 51. <ul><li>Co-operate instead of Competing </li></ul>
  52. 52. <ul><li>Optimism Comes from Co-operation </li></ul>
  53. 53. <ul><li>It’s a matter of Perception and Positive Thinking </li></ul>
  54. 54. Thank You

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