Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 18 Business Ethics and Corporate Governance Notes

→ ‘Businesses need to go beyond the interests of their companies to the communities they serve.’ – Ratan Tata, Former Chairman of the Tata group. ,

→ ‘A business that is in the making of only money is a poor kind of business.’ – Henry Ford, Founder of Ford Motor Corporation.

→ Ethics is derived from the Greek word ‘ethos.’which means a person’s fundamental orientation towards life.

→ Business ethics may be defined as a set of moral standards to be followed by owners, managers and business people.

→ All business units have realised that ethics is vitally important for the existence and progress of the business as well as the society.

→ Top management has a very important role to guide the entire organization towards ethical behaviour.

→ Code of ethics documents the generally accepted principles of ethical conduct.

→ ‘The proper governance of companies will become as crucial to the world economy as the proper governing of countries.’ Jeames Wolfenson, President of World Bank, 1999

→ “Corporate governance is about promoting fairness, transparency and accountability.” -World Bank

→ “Corporate governance is defined as the system by which companies are directed and controlled.” – Cadbury committee

→ MNC is defined to be an enterprise operating in several countries but managed from one country.

→ India ranks 10th in the world in factory output.

→ India has become big employment generator especially amongst young graduates.

→ The 2012 Singapore corporate governance code recommends a majority of Independent Directors when the chairman of me Board is not independent.

→ The Council of Institutional Investors (CI1), Corporate Governance Policies state that at least 2/3rd of the directors should be independent.

→ European commission urges member states to have sufficient number of independent non-executive or supervisory directors on Board.

→ The European Commission has proposed legislation that would require non-executive directors to be 40% women by 2020, up from 16.6% in 2013.

→ UK businesses had voluntary targets first set in 2011 i.e. to have 25% women on FTSE100 (The Financial Times Stock Exchange) Boards by 2015.

→ A bill pending in the Brazilian Senate would impose a 40% female quota on the Boards of state owned enterprises by 2022.

→ In the global and highly interconnected world of business and finance where money and corporate operations constantly cross borders, creating trust is something that we need to do together.

Samacheer Kalvi 11th Commerce Notes