We discussed briefly the Satyam scam - how Corporate Governance failed here and how ethical priciples were not followed. Other examples of failure of Corporate Governance principles are Enron, Worldcom etc. While ethics (business) is about the values of the company and individuals, what is right or what is wrong (the main question of ethics) can be debated based on the context. We discussed about tellig a lie; in absolute terms telling a lie is not RIGHT, that is what you have been taught. But when you play Pokker, you are required to lie. Ethics is related to the value system.
As for Corporate Governance, we discussed about the Board, Board Composition - independent directors, Board committees like the Audit Committee, Remuneration Committee, Appointment Committee etc. (Please see the Guidelines on Corporate Governance issued by the Ministry of Corporate Affairs, Government of India)
Quite a few companies follow a code of conduct for employees, requiring ethical behaviour and following principles of corporate governance.
We also discussed how many of the topics covered under Sustainability or CSR are derived from codes/guidelines agreed internationally. We quickly went through the CSR Guidelines issued by the Government of India (Ministry of Corporate Affairs); I explained to you that the elements covered under this guideline are the same as we have included in the syllabus for this course. I explained to you that Corporate Social Responsibility has developed in such a way that other issues of importance to the whole society have been now included in the subject.
I have handed over a copy each of the CSR Guideline and the Corporate Governance Guideline issued by the Ministry of Corporate Affairs to one of your colleagues; she should share both with all of you.
We recapitulated briefly the nine issues related to Social performance, including Child Labour, Forced Labour, Bribery and Corruption, Gender Equality, Diversity, philanthropy etc.
Finally I wrapped up the discussion by defining Sustainability or CSR as the management of the interface between the organization and its stakeholders. Some of the issues to be managed for the survival, growth, profitability and public acceptance of an organizations are:
Occupational Health & Safety, Labour Union, Employee Compensation, Discrimination, Inclusiveness, Diversity, Child Labour, Bonded Labour, Indentured Labour, Employee Morale and Loyalty, Bribery, Ethics, Humane treatment, Harassment, Insider Trading, Fair and Ethical behaviour, Employee Productivity, EcoEfficiency, Resource consumption, Wastes and emissions, Energy efficiency, GHG Emissions, EcoDesign (Design for Environment), Innovation and Quality, Green/Clean processes, Packaging and Logistics, Green Purchasing, R & D and Innovation, Interest and Exchange rates, Credit Rating, Stock Value, Dow Jones Sustainability Indices, Profits and Dividends, Taxes, Competition, Niche Markets, New and Emerging Markets, Product Safety, Compliance, Brand Image, Response to complaints, Emergency response, Ecological footprints, Philanthropy, Social Programmes, Socially relevant business etc.
In the second half we completed the paper by Porter and Linde on Green and Competitive.
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