To deliver significant commercial value to the business while fully compliant with regulatory laws. To build an environment of trust and confidence amongst all the stakeholders and to develop and implement policies and procedures to ensure operations are efficient, consistent. For a firm success, it needs to focus on both economical, financial and social aspect. It needs to be fair with makers, shareholders, customers, consumers. It has various responsibilities towards employees, customers, communities and at last towards governance.
It is one of the essential pillar for building efficient and sustainable environment. Corporate Governance is based on the principles of integrity, fairness, equity, transparency, accountability and commitment to values. Good governance practices stem from the culture and mindset of the organization. Effectiveness of the Corporate Governance in a Company depends on regular review, preferably regular independent review. As stakeholders across the globe evince keen interest in the practices and performance of companies, Corporate Governance has emerged on the centre stage.
Eskom strives towards the highest standard of ethical conduct in everything it performs. According to the, The Way, Eskom’s directors and employees apply their code of ethics in their day to day activities even if there are no rules that govern those decisions (Eskom, 2008: 2). Eskom obeys with the necessary laws and regulations and they take into consideration the interests of their stakeholders. Their operations and actions are driven based on good corporate governance such as responsibility, accountability, fairness and transparency (Eskom, 2008, 1). Transparency, in the Cambridge Dictionary (2015), can be defined as a situation in which business and financial activities are done in an open way without any hidden secrets.
The company CEO describes collaboration of the company with other strategically placed organizations as one of the strategies of the company living up to its mission and vision statements. It is evident that the company’s organizational understanding is that it ought to improve its standing in the community as it improves its standing in the community. The mission and vision statements are enacted into the very fabric of the company as the company gives a percentage of its profits to the community and gives its employees a safe working
CSR is defined as a form of corporate self-regulation combined into a business representative. Many debates and reports focus on the nature, benefit or business opportunities that can be achieved when performing corporate social responsibility. For that, CSR can be "a source of opportunity, innovation, and competitive advantage"
These principles are to help the business in being sustainable and dealing better with any risks that may be taken. Corporate governance benefits the company and the stakeholders that are directly or indirectly involved in the business. 2. THE BARCLAYS LIBOR RIGGING
Good Corporate Governance helps the companies in the following ways; • Better corporate governance helps the companies to attract more investors as investors know how and where their money is being utilized. • Effective corporate governance systems promote the development of strong financial systems – irrespective of whether they are largely bank-based or market-based. • Effective corporate governance mechanisms ensure better resource allocation and management, increasing the return to capital. The return on assets (ROA) is significantly high in companies with the highest level of equity rights protection than in companies with the lowest protection. Good corporate governance can remove mistrust between different stakeholders, reduce legal costs and improve social and labour relationships.
Mahindra follows strict business practices which govern its decision making and acts as a guiding principle in all circumstances: a) Transparency, accountability and ethics are given highest priority while making any business decision. b) Mahindra aims at producing goods and services that assure safety and are sustainable. c) It has various guiding principles to ensure the wellbeing of its employees in all possible manner. d) Mahindra ensures to keep the interests of its stakeholders, especially the ones who are vulnerable and marginalized, at high priority at all times. e) The human rights need to be protected.
4.2. Governance 4.2.1. Implications of Corporate Governance The methods used for directing and controlling companies are referred to as corporate governance. OECD (1999) signifies the role of corporate governance as the relationship structure along with the associated responsibilities of the board members
Corporate Governance Corporate Governance is the arrangement of tenets, practices and procedures by which an organization is coordinated and controlled. Corporate governance basically includes adjusting the hobbies of the numerous partners in an organization - these incorporate its shareholders, administration, clients, suppliers, lenders, government and the group. Since corporate administration likewise gives the system to achieving an organization's targets, it incorporates basically every circle of administration, from activity arrangements and interior controls to execution estimation and corporate divulgence. (corporate gorvenance ) There are few principles to let a company become a good corporate governance. The first principle that I