The document discusses the role of various agencies in ensuring ethics in corporations, including public opinion, auditors, boards of directors, media, government agencies, judiciary, and whistleblowers. It focuses on the duties and responsibilities of auditors in India, such as certifying accurate financial reporting, compliance audits, and identifying issues. Several committees have made recommendations to improve auditing practices by establishing audit committees, rotating audit partners, prohibiting non-audit services, and increasing financial disclosures and penalties for improper conduct.
India's ancient wisdom, which is still relevant today, inspires people to work for the larger objective of the well-being of all stakeholders. For example, our Rushees, Munees and Saints preached us to serve the society. The idea of CSR first came up in 1953 when it became an academic topic in HR Bowen’s “Social Responsibilities of the Business”. Since then, there has been continuous debate on the concept and its implementation. Although the idea has been around for more than half a century, there is still no clear consensus over its definition. Post 1991, there is increasingly a receding role of the state in the economic and social sphere. An increasing acceptance of CSR by large number of corporate, post liberalization can thus be seen in the context of the larger role being consciously carved for the private sector in an economy which was earlier largely controlled and managed by the State. The corporate world is keen to exploit the opportunities that are being provided by the new economic outlook of the State. Today, 93% of the world’s largest 250 companies now publish annual corporate responsibility reports, almost 60% of which are independently audited.
India's ancient wisdom, which is still relevant today, inspires people to work for the larger objective of the well-being of all stakeholders. For example, our Rushees, Munees and Saints preached us to serve the society. The idea of CSR first came up in 1953 when it became an academic topic in HR Bowen’s “Social Responsibilities of the Business”. Since then, there has been continuous debate on the concept and its implementation. Although the idea has been around for more than half a century, there is still no clear consensus over its definition. Post 1991, there is increasingly a receding role of the state in the economic and social sphere. An increasing acceptance of CSR by large number of corporate, post liberalization can thus be seen in the context of the larger role being consciously carved for the private sector in an economy which was earlier largely controlled and managed by the State. The corporate world is keen to exploit the opportunities that are being provided by the new economic outlook of the State. Today, 93% of the world’s largest 250 companies now publish annual corporate responsibility reports, almost 60% of which are independently audited.
CH- 3 CONCEPTUAL FRAMEWORK OF CORPORATE GOVERNANCE Bibek Prajapati
CH- 3 CONCEPTUAL FRAMEWORK OF CORPORATE GOVERNANCE
FOR CS PROFESSONAL, CA, CMA
Definitions of Corporate Governance
• ICSI Principles of Corporate Governance
• Need for Corporate Governance
• Theories of Corporate Governance
• Evolution and Development of Corporate Governance
• Elements of Good Corporate Governance
The root of the word Governance is from ‘gubernate’, which means to steer. Corporate governance would mean to steer an organization in the desired direction. The responsibility to steer lies with the board of directors/governing board.
• Kautilya’s Arthashastra maintains that for good governance, all administrators, including the king were considered servants of the people. Good governance and stability were completely linked. There is stability if leaders are responsive, accountable and removable. These tenets hold good even today.
• Corporate Governance Basic theories: Agency Theory; Stock Holder Theory; Stake Holder Theory; Stewardship Theory
OECD has defined corporate governance to mean “A system by which business corporations are directed and controlled”. Corporate governance structure specifies the distribution of rights and responsibilities among different participants in the company such as board, management, shareholders and other stakeholders; and spells out the rules and procedures for corporate decision making. By doing this, it provides the structure through which the company’s objectives are set along with the means of attaining these objectives as well as for monitoring performance.
Youtube Video Link -
https://youtu.be/dx28fuD_D4w
Stewardship Theory, developed by Donaldson and Davis focuses on understanding the existing relationships between ownership and management of the company.
Under Stewardship theory managers are considered as Stewards which means someone who is responsible to protect and act in the best interest of shareholders.
It is opposite to agency theory which mentions the conflict of interest between managers and shareholders.
Managers are considered as committed to business, responsible, working towards accomplishment of mission and vision of organization.
They are the one who brings out collectivism in organization and align everyone’s objective for the growth of business.
Focuses on recognizing various groups in organization and empowers them with motivation and delegation of work.
Balances all stakeholders and add significant value to organization reputation.
There exist a strong relationship between managers and success of the company.
Stewards tries to maximize shareholders wealth by constantly increasing profitability and efficiency of business.
More control and restrictions over managers may lower their motivation and hence turn them out unproductive since they take most of the strategic decisions for growth of business in long run.
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CH- 3 CONCEPTUAL FRAMEWORK OF CORPORATE GOVERNANCE Bibek Prajapati
CH- 3 CONCEPTUAL FRAMEWORK OF CORPORATE GOVERNANCE
FOR CS PROFESSONAL, CA, CMA
Definitions of Corporate Governance
• ICSI Principles of Corporate Governance
• Need for Corporate Governance
• Theories of Corporate Governance
• Evolution and Development of Corporate Governance
• Elements of Good Corporate Governance
The root of the word Governance is from ‘gubernate’, which means to steer. Corporate governance would mean to steer an organization in the desired direction. The responsibility to steer lies with the board of directors/governing board.
• Kautilya’s Arthashastra maintains that for good governance, all administrators, including the king were considered servants of the people. Good governance and stability were completely linked. There is stability if leaders are responsive, accountable and removable. These tenets hold good even today.
• Corporate Governance Basic theories: Agency Theory; Stock Holder Theory; Stake Holder Theory; Stewardship Theory
OECD has defined corporate governance to mean “A system by which business corporations are directed and controlled”. Corporate governance structure specifies the distribution of rights and responsibilities among different participants in the company such as board, management, shareholders and other stakeholders; and spells out the rules and procedures for corporate decision making. By doing this, it provides the structure through which the company’s objectives are set along with the means of attaining these objectives as well as for monitoring performance.
Youtube Video Link -
https://youtu.be/dx28fuD_D4w
Stewardship Theory, developed by Donaldson and Davis focuses on understanding the existing relationships between ownership and management of the company.
Under Stewardship theory managers are considered as Stewards which means someone who is responsible to protect and act in the best interest of shareholders.
It is opposite to agency theory which mentions the conflict of interest between managers and shareholders.
Managers are considered as committed to business, responsible, working towards accomplishment of mission and vision of organization.
They are the one who brings out collectivism in organization and align everyone’s objective for the growth of business.
Focuses on recognizing various groups in organization and empowers them with motivation and delegation of work.
Balances all stakeholders and add significant value to organization reputation.
There exist a strong relationship between managers and success of the company.
Stewards tries to maximize shareholders wealth by constantly increasing profitability and efficiency of business.
More control and restrictions over managers may lower their motivation and hence turn them out unproductive since they take most of the strategic decisions for growth of business in long run.
Thank you for Watching
Subscribe to DevTech Finance
The role of government regulation of business in building the concept of corp...Konstantin Eryomin
The educational material about role of different institutes in creation of corporate social responsibility model of business in Russia and other countries. Modern statistics and theoretical aspects are included
There are many NGOs in India that are working with corporate and public enterprises to promote CSR in India. One such renowned organisation has undertaken several projects through CSR to facilitate urban renewal.
Concept of Auditing B.Com(Hons)/B.Com .pdfUmakantAnnand
Concept of Auditing
The term audit is derived from a Latin word “audire” which means to hear authenticity of accounts is assured with the help of the independent review. Audit is performed to ascertain the validity and reliability of information. Examination of books and accounts with supporting vouchers and documents to detect and prevent error, fraud is the primary function of auditing. Auditor has to check the effectiveness of internal control systems for determining the extent of checking out the audit.Initially its meaning and use were confined merely to cash audit, and the auditor has to ascertain whether the persons are responsible for the maintenance of accounts had adequately accounted for all the cash receipts and the payment on behalf of this principle.
But the word audit has an extensive usage, and it now means a thorough scrutiny of the books of accounts and its ultimate aim is to verify the financial position disclosed by the balance sheet and profit and loss accounts of a company. In short, an audit implies an investigation and a report. The process of checking and vouching continues until the study is completed and the auditor enables himself to report under the terms of his appointment
Definition of Auditing
“An audit is an examination of accounting records undertaken with a view of establishing whether they correctly and completely reflect the transactions to which the purport to relate.” –Lawrence R. Dickey
“Audit is defined as an investigation of some statements of figures involving examination of certain evidence, so as to enable an auditor to make a report on the statement.” –Taylor and Perry
Classification of Auditors
Auditors of financial statements & non-financial information (including compliance audit) can be classified into three categories:
1) External auditor/Statutory auditor is an independent firm engaged by the client subject to the audit to express an opinion on whether the company's financial statements are free of material misstatements, whether due to fraud or error. For publicly traded companies, external auditors may also be required to express an opinion on the effectiveness of internal controls over financial reporting. External auditors may also be engaged to perform other agreed-upon procedures, related or unrelated to financial statements. Most importantly, external auditors, though engaged and paid by the company being audited, should be regarded as independent and remain third party.
2) Cost auditor/Statutory cost auditor is an independent firm engaged by the client subject to the cost audit to express an opinion on whether the company's cost statements and cost sheet are free of material misstatements, whether due to fraud or error. For publicly traded companies, external auditors may also be required to express an opinion on the effectiveness of internal controls over cost reporting.
This article tells you about how the Audit to Enterprises of all sizes is an important aspect.
With essential features of auditor like independence,
professional skepticism, documentation skills, and continuous knowledge up-gradation any
Chartered Accountant can make a name for himself in the field of the Audit profession.
Audit is the process and Assurance is the product. Auditors go through the process of testing client’s financial reports (audit) in order to give the client the confidence that their report is what it seems to be (assurance).
The above is based on a business concept often referred to as “agency theory”.
The secondary agent (auditor) delivers assurance to the principal (shareholder) that the report (financial statements) provided by the primary agent (director) is what it appears to be (shows a true and fair view).
External audit is the name given to the formal audit process of auditing financial statements prepared by directors in order to give an opinion on the truth and fairness of those financial statements to shareholders. External audit is by far the most common form of audit but its objective is the same as the objective of any other audit service. The objective of external audit is assurance. The purpose of external audit is the delivery of confidence in financial statements to the shareholders.
This is a theoretical presentation describes the history of audit and assurance, definition, process of auditing, objectives, responsibilities, expectation gap, audit evidence and how to report the audit paper. This is mainly the vast knowledge about how an auditor performs audit and how the reporting of audit is done.
Auditing is the process of verifying the validity of a company's various financial statements. Many renowned experts have defined auditing from their own perspectives. Below are the thoughts of some of the authors who commented on their respective opinions.
World Geography
The rocky ball that forms our world is one of nine planets in the Solar System. Earth is a sphere, with a
slight bulge in the middle at the Equator, and a diameter of 12,756 km (7,926 miles). It hurtles at speeds
of 105,000 kph (65,000 mph) during its orbit around the Sun, turning on its AXIS once every 24 hours.
This journey takes a year to complete. The Earth is the only planet that is known to support life, in a zone
called the BIOSPHERE.
UNIQUE PLANET
Water, oxygen, and energy from the Sun combine on Earth to help create suitable conditions for life.
The planet’s surface is mainly liquid water, which is why it looks blue from space. Earth is the only planet
in the Solar System with an atmosphere that contains a large amount of oxygen. The Sun is 150 million
km (93 million miles) away, producing heat that is bearable on Earth.
ATMOSPHERE
The atmosphere is a layer of gas surrounding the Earth that is some 700 km (400 miles) thick. It is made
up of nitrogen (78 per cent) and oxygen (21 per cent), plus traces of other gases. Tiny droplets of water
vapour form the clouds we see.
OCEANS
Oceans cover 70.8 per cent of the Earth’s surface, to an average depth of 3.5 km (2 miles). The
hydrosphere (watery zone) also includes freshwater rivers and lakes, but these make up less than 1 per
cent of Earth’s water.
LAND
Dry land occupies 29.2 per cent of the Earth’s surface, where the lithosphere (rocky crust) rises above
sea level to form seven continents and countless smaller islands. Land can be categorised into biomes
major habitats such as forests, grasslands, and deserts.
ICE AND SNOW
The cryosphere (frozen zone) includes snow and glaciers on high mountains, sea ice, and the huge ice caps
that cover the landmasses of Greenland and the Antarctic. In the past, during long cold eras called ice
ages, ice covered much more of Earth’s surface than it does today.
EARTH SCIENCE
Meteorology, the study of Earth’s atmosphere, is one of the Earth sciences. Earth scientists study Earth’s
physical characteristics, from raindrops to rivers and the rocks beneath our feet. Other branches of study
include geology (rocks), hydrology, (oceans and freshwater), and ecology (living things and the
environment).
STUDY TECHNIQUES
Satellite images allow scientists to monitor everything from ocean currents to minerals hidden below
ground. Techniques such as radar and sonar have transformed our understanding of our planet. Some
Earth scientists also spend time in the field, which means working outdoors, collecting data and samples
from clouds, cliffs, craters, volcanic lava, and deep-buried ice.
BIOSPHERE
The biosphere is the part of Earth that contains what is needed for living things. This zone extends from
the ocean floor to top of the troposphere (lower atmosphere). Tiny organisms can survive deep in the
Earth’s crust, but most forms of life are found from a few hundred metres below sea level to about 1,000
m (3,300 ft) above sea level.
TH
GLOSSARY OF TOURISM TERMS
Tourism is a social, cultural and economic phenomenon which entails the movement of people to countries or places outside the ir
usual environment for personal or business/professional purposes. These people are called visitors (which may be either tourists
or excursionists; residents or non-residents) and tourism has to do with their activities, some of which involve tourism expenditure.
Activity/activities: In tourism statistics, the term activities represent the actions and behaviours of people in preparation for
and during a trip in their capacity as consumers (IRTS 2008, 1.2).
Activity (principal): The principal activity of a producer unit is the activity whose value-added exceeds that of any other activity
carried out within the same unit (SNA 2008, 5.8).
Activity (productive): The (productive) activity carried out by a statistical unit is the type of production in which it engages. It
has to be understood as a process, i.e., the combination of actions that result in a certain set of products. The classification of
productive activities is determined by their principal output.
Administrative data: Administrative data is the set of units and data derived from an administrative source. This is a data holding
information collected and maintained for the purpose of implementing one or more administrative regulations.
Aggregated data: The result of transforming unit-level data into quantitative measures for a set of characteristics of a population.
Aggregation: A process that transforms microdata into aggregate-level information by using an aggregation function such as count,
sum average, standard deviation, etc.
Analytical unit: Entity created by statisticians, by splitting or combining observation units with the help of estimations and
imputations.
Balance of payments: The balance of payments is a statistical statement that summarizes transactions between residents and
non-residents during a period. It consists of the goods and services account, the primary income account, the secondary income
account, the capital account, and the financial account (BPM6, 2.12).
Bias: An effect which deprives a statistical result of representativeness by systematically distorting it, as distinct from a random
error which may distort on any one occasion but balances out on the average.
Business and professional purpose (of a tourism trip): The business and professional purpose of a tourism trip includes
the activities of the self-employed and employees, as long as they do not correspond to an implicit or explicit employer-employee
relationship with a resident producer in the country or place visited, those of investors, businessmen, etc. (IRTS 2008, 3.17.2).
Business visitor: A business visitor is a visitor whose main purpose for a tourism trip corresponds to the business and professional
category of purpose (IRTS 2008, 3.17.2).
Central Product Classification: The Central Product Classification (CPC) constitutes a comple
Features of Business Communication:
Business Communication has certain features or characteristics which enable us to distinguish it from
other communication.
A communication to be business communication must be:
1. Practical:
Effective business communication deals with the practical aspect of the information explaining why, how,
when and the like queries. It avoids impractical, imaginary, unnecessary or repetitive information to
eliminate waste of time. It conveys important information to the receiver.
2. Factual:
In general, a business message contains facts and figures in place of overall idea. Important date, place,
time, etc. should be clearly mentioned in a business communication.
3. Clear and Brief:
The language used in business communication should be simple, clear, brief and without ambiguity.
Sometimes charts, photographs, diagrams, etc. are used to condense or clarify the information.
4. Target-Oriented:
A business communication must have a specific objective and must be planned properly so that the
objective can be achieved.
5. Persuasive:
Business communication often plays a persuasive role. It persuades an employee to perform his/her
duties, a customer to buy a product or service etc. The basic characteristics mentioned above are related
to the message or information of the communication.
The process of business communication has certain other characteristics. They are:
1. Integral Part of Management Process:
Communication encompasses those activities by which the ideas, opinions and decisions of the managers
are conveyed to the subordinates of different ranks. It also involves the exchange of facts, feelings,
suggestions and responses between the superiors and subordinates.
Communication, in this way, puts the people into action, guides and directs their activities, regulates and
co-ordinates them for proper work performance. A manager, thus, performs the management functions
through communication and managerial positions become the communication centres to receive
information from various sources for its transmission to relevant points.
So, communication is a part and parcel of management function, and is, thus, an integral part of
management process. That is why, Chester I. Bernard remarks, “the first executive function is to
develop and maintain a system of communication”.
2. Two-Way Traffic:
Communication does not only mean its downward movement from superior to the subordinates it implies
both the transmission and reception. So, when conveying any information, a manager should know its
reactions and responses. Otherwise, managerial task of guiding and directing will be ineffective.
A man should, thus, not only speak, inform and order, but should also be able to listen, answer and
interpret. Communication, therefore, involves two-way traffic from the managers to the employees and
from the employees to the managers. It is not complete unless the message has been correctly understood
by the receiver and its res
Concept of Entrepreneurship
Entrepreneurship is the ability and readiness to develop, organize and run a business
enterprise, along with any of its uncertainties in order to make a profit. The most prominent
example of entrepreneurship is the starting of new businesses.
What Is Entrepreneurship
In economics, entrepreneurship connected with land, labour, natural resources and capital
can generate a profit. The entrepreneurial vision is defined by discovery and risk-taking and
is an indispensable part of a nation’s capacity to succeed in an ever-changing and more
competitive global marketplace.
Meaning of Entrepreneur
The entrepreneur is defined as someone who has the ability and desire to establish,
administer and succeed in a startup venture along with risk entitled to it, to make profits. The
best example of entrepreneurship is the starting of a new business venture. The
entrepreneurs are often known as a source of new ideas or innovators, and bring new ideas
in the market by replacing old with a new invention.
It can be classified into small or home business to multinational companies. In economics, the
profits that an entrepreneur makes is with a combination of land, natural resources, labour
and capital.
In a nutshell, anyone who has the will and determination to start a new company and deals
with all the risks that go with it can become an Entrepreneur.
What are the 4 Types of Entrepreneurship?
It is classified into the following types:
Small Business EntrepreneurshipThese businesses are a hairdresser, grocery store, travel agent, consultant, carpenter,
plumber, electrician, etc. These people run or own their own business and hire family
members or local employee. For them, the profit would be able to feed their family and not
making 100 million business or taking over an industry. They fund their business by taking
small business loans or loans from friends and family.
Scalable Startup EntrepreneurshipThis start-up entrepreneur starts a business knowing that their vision can change the world.
They attract investors who think and encourage people who think out of the box. The research
focuses on a scalable business and experimental models, so, they hire the best and the
brightest employees. They require more venture capital to fuel and back their project or
business.
Large Company EntrepreneurshipThese huge companies have defined life-cycle. Most of these companies grow and sustain by
offering new and innovative products that revolve around their main products. The change in
technology, customer preferences, new competition, etc., build pressure for large companies
to create an innovative product and sell it to the new set of customers in the new market. To
cope with the rapid technological changes, the existing organisations either buy innovation
enterprises or attempt to construct the product internally.
Soci
Characteristics of Indian outbound travel.pdfPankaj Chandel
Characteristics of Indian outbound travel, health and visa
formalities to be followed by Indians to visit some
important outbound countries.
Travelling is an exciting and soul-stirring experience that takes us out of our comfort zone and ushers in
us a new perspective of the world. However, packing, planning and preparing for it is a reality check on
our laziness. So, haul yourself up, listen close and listen carefully. Before you can start dreaming about
sandy beaches and Rocky Mountains, check if you have these essential travel documents in hand.
1. Passport: For international travel, you will need a passport. If you are not a passport holder, apply
for one in advance so that your application will be processed and ready in time. If you already have a
passport, make sure that it does not expire within the next 6 months or until you get back. Always carry
a copy of the passport separately. Keep a copy of the passport at home and also with your travel partner.
Carry around a soft copy of the passport as well. The copies will help to get a replacement faster and
easier just in case the original is lost.
2. Visa: Visa is a small stamp that provides conditional permission for entering a country for a specific
period of time. There are countries that grant visa-on-arrival. So, check if the country you are planning
to visit has visa-on-entry for your passport. If not, apply for a tourist visa for that country. Visa application
needs some time to get processed so it is better to apply for it at the earliest.
3. Forex card/ Foreign currency: One of the most important things to keep in hand when travelling
abroad is forex (foreign exchange). It is always better to carry the local currency of a country you are
going to rather than using your credit/debit card abroad. This way you can avoid the currency conversion
fees abroad. You can exchange your money for foreign currency at extravelmoney.com. If you’d rather
not carry money around, you can also buy a Forex Travel Card. Forex Cards are the best and most
convenient way of carrying foreign currency. It can be loaded with foreign currency and again re-loaded
later if the need arises. Extravelmoney.com facilitates the buying and selling of forex.
4. Travel Insurance: Travel insurance is meant to cover medical emergencies, trip cancellation, lost
luggage and any other emergencies that may occur during a trip.
It is not mandatory to take a travel insurance but it will be good to do so because while travelling abroad
medical expenses might turn out to be very expensive and the insurance can take care of that. Hence a
“worry less” travel experience.
5. Air ticket: Booking flight tickets are something that you need to think about early. If you are travelling
to a well-known tourist spot and it is peak time, chances are that flight ticket rates would be very high.
Booking in advance will help to get the tickets at a cheaper rate. Carry a copy of your confirmed air ticket
while you travel j
Every person on this world has his own likes and dislikes. Human thinking varies from person to person. Human thinking is diverse, human wishes, desires var\. People in the world have reason to travel. Some travel for business purposes, some for medical purposes in order to get good medical facility, some travel in order to visit a holy place while some travel to see the natural diversity. The main purpose of travel determines the form of travel and tourism, so tourism could be classified as follows:
ARCHEOLOGICAL TOURISM
CULTURAL HERITAGE TOURISM
PILGRIMAGE TOURISM
ADVENTURE TOURISM
AGRI-TOURISM
11 Types of Networks in Use Today
1. Personal Area Network (PAN)
The smallest and most basic type of network, a PAN is made up of a wireless modem, a
computer or two, phones, printers, tablets, etc., and revolves around one person in one building.
These types of networks are typically found in small offices or residences, and are managed by
one person or organization from a single device.
2. Local Area Network (LAN)
We’re confident that you’ve heard of these types of networks before – LANs are the most
frequently discussed networks, one of the most common, one of the most original and one of
the simplest types of networks. LANs connect groups of computers and low-voltage devices
together across short distances (within a building or between a group of two or three buildings
in close proximity to each other) to share information and resources. Enterprises typically
manage and maintain LANs.
Using routers, LANs can connect to wide area networks (WANs, explained below) to rapidly
and safely transfer data.
3. Wireless Local Area Network (WLAN)
Functioning like a LAN, WLANs make use of wireless network technology, such as Wi-Fi.
Typically seen in the same types of applications as LANs, these types of networks don’t require
that devices rely on physical cables to connect to the network.
4. Campus Area Network (CAN)
Larger than LANs, but smaller than metropolitan area networks (MANs, explained below),
these types of networks are typically seen in universities, large K-12 school districts or small
businesses. They can be spread across several buildings that are fairly close to each other so
users can share resources.
5. Metropolitan Area Network (MAN)
These types of networks are larger than LANs but smaller than WANs – and incorporate
elements from both types of networks. MANs span an entire geographic area (typically a town
or city, but sometimes a campus). Ownership and maintenance is handled by either a single
person or company (a local council, a large company, etc.).
6. Wide Area Network (WAN)
Slightly more complex than a LAN, a WAN connects computers together across longer
physical distances. This allows computers and low-voltage devices to be remotely connected
to each other over one large network to communicate even when they’re miles apart.
The Internet is the most basic example of a WAN, connecting all computers together around
the world. Because of a WAN’s vast reach, it is typically owned and maintained by multiple
administrators or the public.
7. Storage-Area Network (SAN)
As a dedicated high-speed network that connects shared pools of storage devices to several
servers, these types of networks don’t rely on a LAN or WAN. Instead, they move storage
resources away from the network and place them into their own high-performance network.
SANs can be accessed in the same fashion as a drive attached to a server. Types of storagearea networks include converged, virtual and unified SANs.
8. System-Area Network (also known as
What is international tourism?
• Tourism is the generic term used to cover both demand and
supply that has been adopted in a variety of forms and used
throughout the world. International tourism essentially
refers to the activities undertaken by visitors, also known
as the visitor economy. The tourism industry encompasses
all activity that takes place within the visitor economy.
• This includes activities that are directly related to the
tourist, such as staying in a hotel, ordering a meal or
visiting a tourist attraction. It also includes indirect
activities, such as the transport company which delivers
the food to the restaurant in which the tourist eats or the
laundry company that has a contract with the hotel for
cleaning bed sheets.
• It is largely due to the indirect contributions to tourism,
that defining and measuring the tourism industry is so
difficult!
International tourism definitions
• Tourism is a phenomenon with no universally accepted
definition, owing to the complexity and individualism of
the travellers themselves and the activities that they
choose to undertake.
• The most widely utilised definition of tourism, proposed
by the World Trade Organisation (WTO) and United States
(UN) Nations Statistics Division (1994), prescribes that
in order to qualify as a tourist one must travel and remain
in a place outside of their usual residential environment
for not more than one consecutive year for leisure,
business or other purposes.
• Matheison and Wall (1982) on the other hand, do not impose
a timeframe, simply stating that one must travel to a
destination temporarily.
• Leiper (1979) believed that defining tourism is more
complex than this, proposing that there are three
approaches that can be taken. The economic stance focuses
on tourism as a business, the technical stance focusses on
the tourist in order to provide a common basis by which to
collect data and the holistic stance attempts to include
the entire essence of the subject.
• The Cambridge Dictionary define tourism quite simply as;
‘the business of providing services such as transport,
What is Forecasting?
Forecasting is a technique of predicting the future based on the results of previous data. It involves a
detailed analysis of past and present trends or events to predict future events. It uses statistical tools and
techniques. Therefore, it is also called Statistical analysis. In other words, we can say that forecasting acts
as a planning tool that helps enterprises to get ready for the uncertainty that can occur in the future.
Forecasting begins with management's experience and knowledge sharing. To obtain the most numerous
advantages from forecasts, organizations must know the different forecasting methods' more subtle
details. Also, understand what an appropriate forecasting method type can and cannot do, and realize
what forecast type is best suited to a specific need. Let's list down some significant benefits of forecasting:
• Better utilization of resources
• Formulating business plans
• Enhance the quality of management
• Helps in establishing a new business model
• Helps in making the best managerial decisions
A set of observations taken at a particular period of time. For example, having a set of login details at
regular interval of time of each user can be categorized as a time series. Click to explore about, Anomaly
Detection with Time Series Forecasting
What is Prediction?
Prediction is using the data to compute the Outcome of the unseen data.
How does Prediction work?
Firstly, the daily data is fetched from the market once at a time in a day and update it into the database.
Now, the prediction cycle along with learning developed with the use of newly combined data. Historical
data collected and the learning and prediction cycle developed to generate the results. The prediction
results obtained in the form of the various set of periods such as two days, four days, 14 days and so on.
Difference between Prediction and Forecasting
Prediction is the process of estimating the outcomes of unseen data. Forecasting is a sub-discipline of
prediction in which we use time-series data to make forecasts about the future. As a result, the only
distinction between prediction and forecasting is that we consider the temporal dimension. Confusing?
So do we forecast the weather or predict the weather? Consider this, What are the chances that it will
continue to rain in five minutes if it is already raining? Since it is raining right now, regardless of any other
factors that affect the weather (such as air pressure and temperature), the chances of it raining again in
five minutes are high. Right?vThe temporal dimension is whether it is raining right now or not? Without
that forecasting the next 5 mins wouldn't make much sense.
Time-Series refers to data recording at regular intervals of time. Click to explore about, Time Series
Forecasting Analysis
Why Forecasting is important?
Prediction of labor, material and other resources are highly crucial for operating. If the services are
Predicting better, then balanced
methods of doing international business international tourism notes 3.pdfPankaj Chandel
Methods of Doing International Business
• Every market has its own set of rules. If you’re thinking about opening your business up to new
markets, define your international marketing strategy by following these steps.
• The tourism industry is continuously changing: it grows, evolves, faces new challenges to tackle,
and presents new market trends that see marketers having to update to technological changes that
transform the way they can reach their target customers. Not only that, every market and
audience has unique traits that make it even more imperative to think locally while crafting
adapted international marketing strategies.
• The bet on one-of-a-kind experiences that a traveler will never be able to repeat is the underlying
trend. Still, we can’t stop focusing on new ways of selling that respond to new online
consumption habits and have transformed the way users decide between one destination or
another.
• As we noted in our tourism trends report, an extensive analysis McKinsey and Google study of
the European travel industry found that 87% of all travel bookings included the Internet at some
point in the customer journey. Travelers are increasingly preferring to plan their vacations online
instead of visiting traditional travel agencies.
• With the help of technology, brands have a tremendous opportunity to impact their target
audience throughout the decision-making process by showing them exactly what they have to
offer, using the right message, at the right time.
• 360º Marketing in the travel industry
• In this context, with the number of touchpoints multiplying and a purchasing process that does
not follow a linear pattern, we need to consider communicating about a brand from a
comprehensive perspective. That’s where 360° Marketing comes in. It’s an approach to
marketing that brings together all tactics under coherent, unified messaging across all touchpoints
a consumer has with a brand. Therefore, it’s all about having a 360° view over all the resources
we have available and that all the separate actions work together.
• The idea is to craft a complete experience for users and connect them to every stage of the
traveler’s journey. It starts from when they’re searching for inspiration for their next adventure,
beginning to plan it, reserving hotels and excursions, living it in real life, and ending when they’re
sharing it afterward with their friends and loved ones.
International Tourism notes - 9 Tourism Trends That Will Shape the Travel Ind...Pankaj Chandel
9 Tourism Trends That Will Shape the Travel Industry in 2020 and
Beyond
by Catherine Nyorani
travel audience with travellers’ desire for new experiences, the rapid global technological advancements,
climate change, and other dynamics, the travel and tourism industry is constantly transforming.
Having experienced an all-time high in the past decade, with 2018 recording the highest international
tourist arrival, according to the World Tourism Organization (UNWTO), the sector is now undeniably
faced with big challenges and uncomfortable changes in the face of the COVID-19 pandemic.
• All the same, there are still rising tourism trends that can help tour operators, Destination
Marketing Organizations (DMOs), and other industry suppliers to revamp their businesses and
experience success as we get into the new normal.
• From experiential and transformative travel to automation and Bleisure trips, there are new
opportunities companies should focus on.
• In this article, we’ll go through the top tourism trends right now and highlight how leisure
businesses can stay on top of their game and recover during the post-COVID period.
How to Create an International Tourism Marketing Strategy.pdfPankaj Chandel
How to Create an International Tourism Marketing Strategy
• Every market has its own set of rules. If you’re thinking about opening your business up to new
markets, define your international marketing strategy by following these steps.
• The tourism industry is continuously changing: it grows, evolves, faces new challenges to tackle,
and presents new market trends that see marketers having to update to technological changes that
transform the way they can reach their target customers. Not only that, every market and
audience has unique traits that make it even more imperative to think locally while crafting
adapted international marketing strategies.
• The bet on one-of-a-kind experiences that a traveler will never be able to repeat is the underlying
trend. Still, we can’t stop focusing on new ways of selling that respond to new online
consumption habits and have transformed the way users decide between one destination or
another.
• As we noted in our tourism trends report, an extensive analysis McKinsey and Google study of
the European travel industry found that 87% of all travel bookings included the Internet at some
point in the customer journey. Travelers are increasingly preferring to plan their vacations online
instead of visiting traditional travel agencies.
• With the help of technology, brands have a tremendous opportunity to impact their target
audience throughout the decision-making process by showing them exactly what they have to
offer, using the right message, at the right time.
• 360º Marketing in the travel industry
Personality grooming standards for aviation industry - avaition .pdfPankaj Chandel
Why is grooming important in aviation industry?
Grooming and appearance are of a great significance with the fact that it is quite repetitive serving food
and drinks on each flight while persistently having to appear jovial and self-confident. Cabin Crew are
seen as representative of their airlines whenever they are in uniform.
In this way, why is grooming important in aviation?
Proper grooming and professional appearance are important to gain not just positive impression but also
respect in the workplace. First impressions matter and the way you look and carry yourself create impact
on people you get along within the work setting.
why is personal grooming important? Professional Appearance: Nowadays are more focused and tend to
indulge personal grooming. Practicing personal grooming result in a healthier body as well as result in
looking better. Hygiene: Practicing personal grooming can also involve wearing fresh clothes, flossing
teeth and maintaining clean body.
In this manner, what is grooming in aviation?
It is the process of making yourself look neat and attractive. The things which you do to make yourself
and your appearance tidy and pleasant. Grooming is important for a positive self-image and to encourage
and assist the resident to maintain a pleasing and attractive appearance.
What do u mean by aviation?
aviation. If someone tells you that he's in aviation school, that means he is learning how to fly a plane.
Aviation comes from the Latin a vis meaning "bird," an appropriate translation given that aviation deals
with travel by air, specifically in a plane.
Types of Computer Networks bba 1st sem.pptxPankaj Chandel
There are various types of computer networks available. We can categorize them according to their size as well as their purpose.
The size of a network should be expressed by the geographic area and number of computers, which are a part of their networks. It includes devices housed in a single room to millions of devices spread across the world.
Some of the most popular network types are:
PAN
LAN
MAN
WAN
What Is a Computer Reservation System bba 1st sem.pptxPankaj Chandel
Travel is one of the top business areas. It employs various technological advances and offers numerous benefits to both travelers and travel agencies.
Computer Reservation System (CRS) is one of the most widely used tools in the Travel and Tourism Industry. In fact, it has revolutionized the whole industry.
A computer reservation system or a central reservation system (CRS) is a web-based software used by travel agencies and travel management companies to retrieve and conduct transactions related to air travel, hotels, car rental, or other activities. It was originally designed to be used by airlines but was later extended to be used by travel agencies and Global Distribution Systems (GDS) to book and sell tickets for multiple airlines.
Tour Packages and Itinerary Preparation .pptxPankaj Chandel
Package holidays, popularly known as a tour package or simply the word ‘tour’ in the travel and tourism industry refers either to a package tour escorted or not escorted by the tourist guide.
When we say tour package, it means a pre-arrangement, prepaid trip that combines two or more travel components like airfare, airport transfer, accommodation, and other services. Practically, to define the tour package concept is complex one rather understand.
Holloway defines a tour package as “a total tourism product consisting of transportation from the market area to the destination, accommodation at the destination and recreational activities promoted by the tourists.”
According to Gregorg “a tour package is advertised journey including specific features, arranged and promoted with tour literature by a tour operator and paid for in full by the tourists before starting the tour.”
Technically, a package tour/tour package is a total tourism product as it generally includes transport from the origin place to the destination, accommodation at an en route place or at the destination and other recreational or travel services. These components are purchased by an individual, firm or company called the ‘tour operator‘. He combines all the travel components in a package and sells them at all-inclusive prices to the clients.
The term ‘tour’ was in vogue as early as 1670. The Britishers traveled to widen their knowledge of the continent, especially to study the culture and social life. This practice was gradually adopted by other lovers of cultural centers.
The result of the process was that many European historic and cultural centers were opened to the British tourist. By the early 1730’s the small fishing resorts around the British coast begin to attract tourists seeking to their diseases by drinking the sea-water or by immersing themselves in it.
The introduction of a rail link between the major centers in 1830, had a profound impact on the pleasure travelers for the first time. Many entrepreneurs began to inspire rail travel by organizing excursions for the public at discounted offers.
Menu is the statement of food and beverage items available or provided by food establishments primarily based on consumer demand and designed to achieve organizational objectives. It represents the focal point around which components of food service systems are based. The menu is designed carefully what the outlet wants to cater for, keeping in mind the type of clientele. The main advantage of a well-planned menu is that it leads to consumer satisfaction. It also helps to motivate the employees for a responsible and successful service
Menu planning is the most important aspect of planning and organization in the food industry. It is an advance plan of a dietary pattern over a given period of time.
Menu planning is one of the important managerial activities of food and beverages operations executed by a team comprising the entrepreneur/proprietor, the restaurant manager, and the executive chef. In a large hotel, the general manager and the food and beverage (F&B) manager will also be members of the team. In welfare catering operations, the head of the institution, the catering manager, and the finance manager will be involved. Menu planning calls for careful thought on many factors that would determine the success of the F&B operation. Menu forms the basis or acts as a guide upon which all other managerial and operational activities of F&B operations rest on.
The restaurant business is one of the fastest growing sectors in India. According to a sector report on food service industry released by National Restaurant Association of India (NRAI), the Indian restaurant industry will be contributing a share of 2.1% to the GDP by 2021. This is possible because the Food Business has various lucrative restaurant formats and different types of restaurants that cater to the vast customer demography.
Each restaurant format has its own set of target audience and requires a different kind of investment, location, skills, and overall effort. This makes different types of restaurants unique in their own right. Because of this, it is crucial that you understand what the different types of restaurants that exist are, what differentiates two restaurant formats and most importantly, which restaurant format will work for you.
Banquet organization structure mba ttm.pptxPankaj Chandel
Banquet department uses various pieces of equipment that are necessary to conduct different types of functions. While booking the function, the banquet manager or in-charge should discuss with the host and find out the facilities required and make the host clear what are the facilities available free of cost and what will be provided with extra charges. The banquet department has a store room which is used for storing the banquet equipment. It should be remembered that these equipment occupy the function space. More the equipment in use, more the space utilized. Facilities may be outsourced if they are unavailable in the property.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
Explore the world of the Taurus zodiac sign. Learn about their stability, determination, and appreciation for beauty. Discover how Taureans' grounded nature and hardworking mindset define their unique personality.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Role of various agencies in ensuring ethics in corporations by pankaj
1. Role of Various Agencies in Ensuring Ethics in
Corporations
by:- Pankaj Singh Chandel
2. Factors that ensure ethical practices in companies
1. Public opinion
2. Role of auditors
3. Role of Board of Directors in Ensuring Ethical Business
4. Media and business ethics
5. Role of Government Agencies in Ensuring Ethical Practices
6. Role of judiciary
7. Role of SEBI
8. Role of whistle-blowing
3. 1. Public Opinion
• Public opinion can initiate new requirements, help
crystallization of policy initiatives and force public
authorities to create an ethically conducive environment.
2. Defining Auditor
• An auditor is defined as a person appointed by a company to
perform an audit. He is required to certify that the accounts
produced by his client companies have been prepared in
accordance with normal accounting standards and represent
a true and fair view of the company. Usually, Chartered
Accountants are appointed as auditors.
• An auditor is a representative of the shareholders, forming a
link between the government agencies, stockholders,
investors and creditors.
4. Defining Audit
• The Institute of Chartered Accountants of India (ICAI) has
defined audit as, "...The independent examination of any
entity, whether profit oriented or not and irrespective of its
size or legal form, when such an examination is conducted
with a view to expressing an opinion thereon”.
• Auditing is the process by which a competent independent
person objectively obtains and evaluates evidence
regarding assertions about an economic activity or event
for the purpose of forming an opinion about and reporting
on the degree to which the assertion conforms to an
identical set of standards.
5. There are three types of auditors:
Internal Auditors
• Internal auditors are employed by the organization for
which they perform audits. Their responsibilities vary and
may include financial statement audits, compliance
audits and operational audits. They may assist the external
auditors in completing the financial statement audit or
perform audits for use by management within the entity.
• An organization may have a small or very large internal
audit staff. They cannot be independent as long as the
employer– employee relationship exists.
6. Independent Auditors
• Independent auditors are usually referred to as CPA
(Certified Public Accountants) firms. The opinion of an
independent auditor about financial statements makes
the statements more credible to such users as
investors, bankers, labour unions, government
agencies and the general public.
7. Government Auditors
• Government auditors work in various local, state and federal
or Central government agencies performing financial,
compliance and operational audits. Local and state
governments, for example, employ auditors to verify that
businesses collect and remit sales taxes and excise duties as
required by law.
8. DUTIES OF AN AUDITOR
The duties of an auditor are defined under section 227 (1A) of
the Companies Act 1956.
It says that an auditor can enquire
1. whether loans and advances made by the company on the
basis of security have been properly secured ;
2. whether transactions of the company which are represented
merely by book entries are not prejudicial to the interests of
the company ;
9. DUTIES OF AN AUDITOR (contd.)
3. where the company is not an investment company within
the meaning of Section 372 or a banking company,
whether so much of the assets of the company as consist of
shares, debentures and other securities have been sold at a
price less than that at which they were purchased by the
company ;
4. whether loans and advances made by the company have
been shown as deposits ; and
5. whether personal expenses have been charged to revenue
account.
10. RESPONSIBILITIES OF AUDITORS
As per the Standard Auditing Practices (2), the auditor
• Is responsible for forming and expressing his opinion on the
financial statements. He assesses the reliability and
sufficiency of the information contained in the underlying
accounting records and other source data by making a
study and evaluation of accounting systems and internal
controls.
• Determines whether the relevant information is properly
disclosed in the financial statements by comparing the
financial statements with the underlying accounting
records and other source data to see whether they
properly summarize the transactions and events recorded.
11. RESPONSIBILITIES OF AUDITORS (contd.)
• Has to ensure that his work involves exercise of judgment,
as for example, in deciding the extent of audit procedures
and in assessing the reasonableness of the judgments and
estimates made by the management in preparing the
financial statements.
• Is not expected to perform duties which fall outside the
scope of his competence. For example, the professional
skill required of an auditor does not include that of a
technical expert for determining physical condition of
certain assets.
12. AUDIT FAILURES LEADING TO CORPORATE SCAMS
The Enron debacle
• In May 2001, Arthur Andersen connived with its client,
Sunbeam Corporation for financial fraud and fudging of
accounts.
• In June 2001, an American Superior Court fined Arthur
Andersen towards damages to shareholders for certifying
false statements of accounts of Waste Management Inc.
Three of Arthur Andersen's partners were fined between $
30,000-50,000 each and banned from auditing work for 3–
5 years.
13. AUDIT FAILURES LEADING TO CORPORATE SCAMS (Contd.)
• Deloitte & Touche also landed in trouble in 2002 for applying a
valuation model for fast-food franchisees, which misled bankers
into extending credit to unworthy clients and incurring a
colossal bad debt of $ 10 billion.
• In 1999, another reputed US based accounting firm, Ernst &
Young paid $ 335 million to a client to settle a lawsuit related
to accounting problems.
• Another American auditing firm, KPMG attracted censure from
SEC for engaging in improper professional practice. While
serving as an audit firm for Short Term Investment Trust, it also
made substantial investments in it. Its money-market account,
opened in May 2000 with an initial deposit of $ 25 million,
constituted 15 of the fund's net assets at one point of time.
14. THE US LAW GOVERNING AUDITORS’ RESPONSIBILITIES
• Sarbanes Oxley Act (SOX) was passed by the US Congress in
2002 with an aim to protecting investors from the fraudulent
accounting practices of corporations.
• Establishment of Public Company Accounting Oversight
Board (PCAOB)
15. INDIAN ATTEMPTS TO PREVENT FRADULUENT AUDITING
PRACTICES
• Till date, four committees played a vital role in framing the
responsibilities of the auditors and the audit committees:
the R.D. Joshi Committee, the Kumar Mangalam Birla
Committee, the Naryana Murthy Committee and the Naresh
Chandra Committee. All these committees'
recommendations focused mainly on the following aspects
of auditing: Formation of the audit committee, their
responsibilities, rotation of auditors, prohibition of non
audit services and the transparency of financial statement.
16. Audit Committee
• An audit committee is a committee made up of
independent directors. It is responsible for the
appointment, fixing of fees and oversight of the work of
independent auditors. The committee is also responsible for
establishing and reviewing the procedures for the receipt,
treatment of accounts, internal control and audit
complaints
17. Audit Committee (contd.)
The audit committee, according to the afore-mentioned four
committees, should review the following information.
• Financial statements and draft audit reports, including
quarterly/half-yearly information;
• Management discussion and analysis of financial conditions
and the results of operations;
• Report relating to compliance with laws and risk
management ;
• Management letters/letters of internal control weakness issued
by statutory and internal auditors; and
• Records of related pay transactions.
18. Audit Partner Rotation
• These committees have also recommended the mandatory
rotation of lead audit partner and partner reviewing audit
every five years.
19. Prohibition of Non-Audit Services
• Auditors are prohibited from providing non-audit services
concurrently with audit review services. Non-audit services
include book-keeping, financial and information system
design, internal audit, HRD services, investment advice,
investment banking services, legal advice, appraisal,
valuation and actuarial services.
20. Disclosures
• Full disclosures of accounts and decisions of management
involving the funds of the company to all its stakeholders is
a desiderata of good corporate culture. The R.D. Joshi
Committee has suggested the imposition of responsibility on
auditors to check and, report diversion, under utilization or
misappropriation of funds by companies. The Naresh
Chandra Committee has recommended that the auditors
should disclose implications of contingent liabilities so that
the investors and shareholders have a clear picture of these
liabilities.
21. Penalties
• Under section 539 of the Companies Act 1956, if an
auditor is found to be involved in unethical practices, he
will be punishable with imprisonment for a term which may
extend to seven years and shall also be liable to a fine.
• Under Section 21 of the Chartered Accountants Act, it is
said that the auditor will be prevented from exercising his
duty and his license will be cancelled by ICAI.
22. 3.Role of Board of Directors in Ensuring
Ethical Business
The separation of ownership from active direction and
management is an essential feature of the company form of
organization. To manage the affairs of the company,
shareholders elect their representatives called the
“Directors” of the company.
A number of such directors constitutes the “Board of
Directors”. The board generally has only part-time
directors.
23. Who is a Director?
• Section 2 (13) of the Companies Act defines a director as
follows: “A director includes any person occupying the
position of director by whatever name called. The
important factor to determine whether a person is or is not a
director is to refer to the nature of the office and its duties.
It does not matter by what name he is called, if he performs
the functions of a director.
• Section 2(6) of the Companies Act states that directors are
collectively referred to ‘Board of Directors’ or simply the
‘board’.
24. Legal Position of a Director
• They have been described variously as agents, trustees, or
managing partners of the company.
• The legal position of the directors as agents and trustees
emanate from the fact that a company being an artificial
person cannot act in its own person.
• It has become a well-settled fact now that directors are not
only agents but also act as trustees as a result of several
court decisions in India and England.
25. Duties and Responsibilities of Directors
• The directors have certain duties to discharge. These are:
(i) fiduciary duties (ii) duties of care, skill and diligence;
(iii) duties to attend board meetings; (iv) and duties not to
delegate their functions except to the extent authorized by
the Act or the constitution of the company and to disclose
his interest.
26. Qualifications of Directors
• No body corporate, association or firm can be appointed
directors of a company. A director must: (a) be an
individual; (b) be competent to enter into a contract; and
(c) hold a share qualification if so required by the Articles
of Association.
27. Powers of the Board
The Board of Directors of a company which includes all the
directors elected by shareholders to represent their interests is
vested with the powers of management which are:
(a) make calls on shareholders in respect of money unpaid on
their shares;
(b) issue debentures;
(c) borrow moneys otherwise (for example, through public
deposits);
(d) invest the funds of the company; and
(e) make loans.
28. Liabilities of Directors
Directors of a company may be held liable under the
following situations:
1.Directors of a company may be liable to third parties in
connection with the issue of a prospectus, which does
not contain the particulars required under the
Companies Act or which contains material
misrepresentations;
2.Directors may also incur personal liability under the
Act
29. Liabilities of Directors (contd.)
a. on their failure to repay application money if minimum
subscription has not been subscribed;
b. on an irregular allotment of shares to an allottee (and
likewise to the company) if loss or damage is sustained;
c. on their failure to repay application money if the
application for the securities to be dealt in on a
recognized Stock Exchange is not made or refused ;and
d. on failure by the company to pay a bill of exchange,
hundi, promissory note, cheque or order for money or
goods wherein the name of the company is not
mentioned in legible characters.
30. The Directors’ Liability to the Company
1. Ultra vires Acts: Directors are personally liable to the company in
matters of illegal acts.
2. Negligence: A director may be held liable for negligence in the
exercise of his duties.
3. Breach of Trust: They are liable to the company for any material
loss on account of the breach of trust.
4. Misfeasance: Directors are liable to the company for
misfeasance, i.e, willful misconduct.
31. Liability for Breach of Statutory Duties
The Companies Act imposes penalty upon the directors for not
complying with or contravening the provisions of the Act, which
include sections on criminal liability for misstatements in
prospectus, penalty for fraudulently inducing persons to invest
money, purchase by a company of its own shares, concealment
of names of creditors entitled to object to reduction of capital,
penalty for default in filing with the registrar for registration of
the particulars of any charge created by the company.
32. Disabilities of Directors
In order to protect the interest of a company and its
shareholders, the Companies Act has placed the following
disabilities on the directors:
1. Any provision in the Articles or an agreement which exempts
a director (including any officer of the company or an
auditor) from any liability on account of any negligence,
default, misfeasance, breach of duty or breach of trust by
him shall be wholly void.
2. An undischarged insolvent shall not be appointed to act as
director of any company, or in any way to take part in the
management of any company.
33. Disabilities of Directors (Contd.)
3. No person shall hold office at the same time as director in
more than 15 companies.
4. A company shall not without obtaining the previous approval
of the Central Government in that behalf, directly or
indirectly make any loan to
a. any director of the lending company or of a company
which is its holding company or any partner or relative of
any such director;
34. Disabilities of Directors (Contd.)
a. any firm in which any such director or relative is a
partner;
b. any private company of which any such director is a
director or member;
c. any body corporate at a general meeting of which not
less than 25 per cent of the total voting power may be
exercised or controlled by any such director; or
d. any body corporate, the board of directors, managing
director, or manager whereof is accustomed to act in
accordance with the directions or instructions of the
Board, or of any director or directors of the lending
company.
35. Disabilities of Directors (contd.)
5. Except with the consent of the board of directors of a
company, a director of the company or his relative, a
firm in which such a director or relative is a partner, any
other partner, in such a firm, or a private company of
which the director is a member or director, shall not
enter into any contract with the company.
a. for the sale, purchase or supply of any goods,
materials or services; or
b. for underwriting the subscription of any shares in, or
debentures of, the company.
6. A director shall not assign his office. If he does, the
assignment shall be void.
36. Effectiveness of the Board of Directors
The realistic functions of the board are:
a. Confirming management decisions on company matters;
b. Providing constructive advice to the executives on business
outlook, new governmental legislation, wage policy etc.;
c. Selecting the chief executives and confirming the selection
of the other executives in the company made by chief
executives; and
d. Reviewing the results of current operations.
37. RESPONSIBILITIES OF DIRECTORS
1. An efficient and independent board should be conscious of
protecting the interests of all stakeholders and not be
concerned too much with the current price of the stock.
2. Another important function of the director is to set
priorities and to ensure that these are acted upon.
38. RESPONSIBILITIES OF DIRECTORS (Contd.)
3. A director is also expected to have the courage of
conviction to disagree.
4. Directors have great responsibility in the matter of
employment and dismissal of the CEO.
5. One of the toughest challenges confronted by boards arises
while approving acquisitions.
39. RESPONSIBILITIES OF DIRECTORS (Contd.)
6. An efficient board should be able to anticipate business
events that would spell success or lead to disaster if proper
measures are not adopted in time.
7. The directors have a duty to act bona fide for the benefit of
the company as a whole.
8. In recent times, those who advocate reform of laws
governing corporate practices stress the importance of
reformulation of the concepts behind these laws.
40. FAMILY-OWNED BUSINESSES AND BUSINESS ETHICS
• The board of directors, including chairmen and managing
directors, consisted of family members with a couple of
directors from funding financial institutions and perhaps a
couple of outside passive directors.
• In such cases the Board nods its head for all decisions of
the CEO who may promote his/his family interests and may
not be interested in promoting long-term share-holder value.
41. 4. Media and Business Ethics
The media can play a role in ensuring ethical business by
affecting reputation in at least three ways.
1.It can drive politicians to introduce corporate law reforms
or enforce corporate laws.
2.It could affect reputation through the standard channel
that most economic models emphasize.
3.It affects managers' and board members' reputations in the
eyes of shareholders and future employers, and society at
large.
42. Corporate Ethics and the Press
• Shareholder Activists and the Press
• Institutional Investors
• Private and Government regulators
• The Press vs. Other Mechanisms For Addressing Ethical
Problems
43. ETHICS IN ADVERTISING
• A number of humanities and social science scholars view
advertising as intrusive and environmental and its effects as
inescapable and profound. They see it as reinforcing
materialism, cynicism, irrationality, selfishness, anxiety,
social competitiveness, sexual preoccupation,
powerlessness and loss of self respect. These are strong
indictments which imply that advertising is a powerful
force.
44. Defenders of advertising argue that it has a beneficial effect
on several basic areas :
• Information.
• Values and life-styles.
• Creative experience.
45. Adverse effects of advertising :
• Deception
• Fear factor
• Advertising to children
• Materialism
• Promoting stereotypes
• Advertising alcoholic beverages
• Competitive advertising
• Increasing costs
• Exploiting visual appeals
• I’m the best
• Absence of full disclosure
• Use of celebrities
• Fantasy and reality
46. ADVERTISING STANDARDS
The code of the Advertising Standards Council of India expects,
inter alia, that there will be :
a. No offence to generally accepted norms of public decency
b. Truthfulness and honesty in claims and representations
c. No indiscriminate use of advertising for products which are
hazardous to society or to individuals.
d. References to eminent personalities/political figures and the
use of national emblems are not normally permitted.
e. Comparative advertising should respect the principles of fair
competition generally accepted in business.
47. 5. Role of Government Agencies in Ensuring
Ethical Practices
In India, the Department of Company Affairs (DCA), the
Ministry of Finance, the Commerce and Industry ministries have
powers to oversee corporate activities and take corrective
action against corporate misdemeanors. Additionally, there
are regulators such as SEBI, RBI, TRAI, IRDA, which as public
authorities have the power and responsibility to monitor and
supervise companies.
48. 6. Role of Judiciary
• One of the areas in which the judiciary has been very
active is to find out whether any legislation that is passed or
practised, is in tune with the basic structure of the
Constitution.
49. 7. Role of SEBI in Ensuring Ethical Corporate
Governance
Establishment of SEBI: set up on 12 April 1988 by the
Government of India; given legal status by the Securities and
Exchange Board of India Ordinance 1992.
Basic objectives:
• protection of investors' interests in securities
• promotion of the development of the securities market and
• regulation of the securities market
50. 7. Role of SEBI in Ensuring Ethical corporate
governance (Contd.)
SEBI has been clothed with the following powers:
a. To promote fair dealing by the issuers of securities and
ensure a marketplace where companies can raise funds at
relatively low cost;
b. To provide a degree of protection to investors and safeguard
their rights and interests and
c. To regulate and develop a code of conduct and fair
practices by intermediaries
51. 7. Role of SEBI in Ensuring Ethical corporate
governance (Contd.)
Initiatives of SEBI in the following areas:
• pricing of preferential share allotments
• take-overs
• Insider trading
• Information disclosure
• promoter’s contribution and lock-in
• Need for corporate governance for security markets
• Appointment of committees
• Clause 49
52. 8. Role of whistle-blowing
Grounds for whistle-blowing:
• Internal: to make the product safe or change the process
• Governmental: faulty design, decisions, which will affect the
public
• External: Individual user who runs the risk
53. WHEN IS WHISTLE BLOWING PERMITTED?
1. Motives are moral
2. Exhausted all existing internal procedures and failed to get
the moral error corrected
3. Employee has reached the last and sixth stage of
Kohlbergh’s six stages of evolution – the stage of universal
ethical principles.