The slide is about Corporate Governance in related to the mission, vision, code of conduct and ethical values of Power Finance Corporation and how PFC's CSR is related to the sustainable development goal of United Nations.
2. Philosophy of Power Finance Corporation Ltd.
Corporate Vision
To be the leading institutional partner for the power and allied infrastructure sectors in India and overseas across the value chain.
Corporate Mission
• PFC would be the most preferred Financial Institution; providing affordable and competitive products and services with efficient and internationally
integrated sourcing and servicing, partnering the reforms in the Indian Power Sector and enhancing value to its stakeholders; by promoting efficient
investments in the power and allied sectors in India and abroad.
So here, two components of Clause 49 are followed, i.e. (a) Right to shareholders, and (b) Role of stakeholders in Corporate Governance
• We will achieve this being a dynamic, flexible, forward looking, trustworthy, socially responsible organization, sensitive to our stakeholders' interests,
profitable and sustainable at all times, with transparency and integrity in operations.
So here, two components of Clause 49 are followed, i.e. (c) Disclosure and Transparency, (d) Responsibilities of board and other responsibilities.
Corporate Governance
SEBI issued revised Clause 49 lays down overall framework or objectives of requirements of clause 49 and companies are expected to interpret and apply
those provisions in alignment with the principles. The components that are followed by the mission and vision of PFC are :
Rights of Shareholders
Role of stakeholders in Corporate Governance
Disclosure and transparency
Responsibilities of board and other responsibilities
3. Let us have a look on some of the most important Ethical key values and Code of Conduct of PFC Ltd . Board Members, KMPs and Senior Management shall act
within the authority conferred upon them, keeping the best interests of the company in view and observe the following:
Act honestly, fairly, ethically and with integrity.
Conduct themselves in a professional, courteous, and respectful manner and not take improper advantage of their positions
Act in a socially responsible manner, in order to enhance and maintain the reputation of the company within the applicable laws, rules and regulations of the
countries.
Now if we discuss about the Ethics and key values undertaken by PFC , they are as follows:
General Moral Imperatives:
Contribute to society and human well being
Be honest and trustworthy & practice integrity
Be fair and take action not to discriminate
Specific Professional Responsibilities:
Live the Vision, Mission and Values of PFC each day
Values : Zeal to excel and zest for change, integrity and fairness in all matters, Ensure speed response, Strict adherence to commitment.
The values follow the guidelines provided by Companies Act 2013,Section 149(8) which determines the Code For Independent Directors.
Corporate Social Responsibilities:
Promote and leverage green technologies that contribute social and environmental sustainability
Take up projects that provide energy, water and Sanitation facilities to the communities.
Take up activities to support “Differently able person” and the “health sector”
Contribute to growth and equitable development in society through education, empowerment of the marginalized and underprivileged sections.
Code of Business Conduct, Ethics and Key Values
4. Strategies and policies of Power Finance Corporation
Policies
Whistle blower policy: Being an integral part of such a vigil mechanism, this policy has been introduced by the company with the view of empowering the
Directors and Employees of PFC or any of its subsidiary companies to detect and report the inappropriate activities within organisation. The Whistle blower Policy
also followed certain norms and regulations of revised clause 49 of Corporate governance. In Particular the Code for independent directors and the requirements
of Subsidiary companies are defined here.
CSR and Sustainability policy: PFC ensures an increased level of commitment at all levels in the organization, to operate its business in an economically, socially
and environmentally sustainable manner , while recognizing the interest of its stakeholders. This policy follows the key components of Companies Act 2013,
section 135.
Related party transaction policy: It is a transfer of resources, services or obligations between a company and a related party, irrespective of, whether a price is
charged and include all contracts with the Party. The Company has adopted this Policy dealing with the identification, review and approval of Related Party
Transactions. The policy of Related Party Transactions by PFC has followed the requirements of revised clause 49 of Corporate Governance, which requires the
company to laydown its policy for material related party transactions and manner of dealing with related parties.
Strategies
PFC shall consistently strive to meet the expectations of the society by supporting initiatives for improving infrastructure, quality of life, community without
compromising on ecological issues on sustainable basis.
PFC shall align their CSR and sustainability policy with their business policies and strategies to the extent possible.
It shall consistently determine to take up long gestation, high impact projects from the budget allocated.
It shall provide resources for undertaking Joint ventures in Public-Private and Corporate Partnerships.
It shall persistently work for the up-liftment of person with disabilities particularly in skill development initiatives.
CSR Scheme taken up by PFC (FY 2017-18) on basis of CSR and Sustainability policy
PFC has undertaken a many CSR schemes in the FY2017-18 on basis of CSR and Sustainability Policy. One of the successful scheme, which was implemented by
L&T Construction. Financial assistance to Project for conducting Skill Development Training for Unemployed Youth belongs to SC/ST/OBC/PwD/Women/EWS
sections of society – 3000 persons through the implementing agency L&T Construction.
5. Strategy, Policy and key Values of PFC in related to the concept of Ethics
The CSR that PFC has undertaken related to take up projects that provide energy, water and Sanitation facilities to the
communities is following the 6th and 7th goal of UN’s Sustainable development goal which is providing affordable, clean
energy and Sanitation respectively.
The CSR that PFC has undertaken to Contribute to growth and equitable development in society through education,
empowerment of the marginalized and underprivileged sections is following the 4th UN’s Sustainable development goal of
quality education.
The CSR that PFC has undertaken to Take up activities to support “Differently able person” and the “health sector” is
following 3rd UN’s Sustainable development goal of Good Health and well-being.
The PPC model undertaken by PFC with L&T construction to provide Skill Development Training to unemployed youth
follows the 17th UN’s Sustainable development goal of Partnership for the Goals.
The key components of Code of Conduct of PFC have followed the concept of Deontology in Ethics. Deontology defines
the rightness or wrongness of an action in terms of a duty or obligation to respect the rights and values of persons.
The mission of PFC to protect the right of shareholders and Responsibilities of board and other responsibilities has also
followed the theory of Deontology.
The CSR strategy undertaken by PFC to Promote and leverage green technologies that contribute social and environmental
sustainability, and Contribute to growth and equitable development in society through education, empowerment of the
marginalized and underprivileged section follows theory of Utilitarianism which is an ethical philosophy in which the
happiness of the greatest number of people in the society is considered the greatest good.
6. PFC’s strong foundation of integrity and ethical business conduct is fundamental to
their success, and generating long-term sustainable growth. They have valued the
reputation built and maintained over the years by upholding high standards of
conduct, earning the confidence, respect and trust of the customers, business
partners, shareholders, employees and communities.
So it can be concluded that Ethics is essential for the foundation of the company as
well as to build a civilized society as a whole. Diversity in workforce and
conducting activities in a socially responsible manner, determines the destiny of a
company. A Company who wants to sustain in long term must follow Meta Ethics
to some extent as it provides internal motivation to Corporate managers by
exploring the status, foundations and scope of moral values, properties, and words.
So, Ethical behavior and practice is necessary for becoming a role model,
moreover to make the right decision at different type of complex situations.
Conclusion
7. Bibliography
Book
Fernando, A.C. Business Ethics: An Indian Perspective. Noida: Dorling
Kindersley,2009
Internet Site
http://www.pfcindia.com/
https://www.un.org/sustainabledevelopment/sustainable-
development-goals/
http://www.mca.gov.in/Ministry/pdf/CompaniesAct2013.pdf
https://www.ey.com/Publication/vwLUAssets/EY-sebi-clause-49-and-
companies-act-13-a-comparison/$FILE/EY-sebi-clause-49-and-
companies-act-13-a-comparison.pdf