Anirudh Agarwal Management 595 Business Strategy Analytical Report #2 Good Corporate Go ernance !

ractices " Boards o# $irectors

The fortune 500 firm that has been analyzed is Reliance Industries limited, the firm with the highest market capitalization. Head uartered in India, the fortune 500 firm has a !ery good corporate go!ernance schedule. The "#$ and "hair of the board is %r. %ukesh & 'mbani. He is also the lead director of Reliance Infotel (roadband )er!ices *imited, Reliance +oundation, I%, Reliance -ri!ate *imited and Reliance #urope *imited and is the highest authority on all company related matters. His decision on all corporate affairs is binding. 5 board members are insiders while . are affiliated and are e/ternal. The board members ha!e been on the board for any number of years is from di!erse cultures in terms of racial and ethnic differences. #ducation and industry e/periences are the greatest sources of di!ersity. %ost of the inside directors own e uity in the firm as shown in the table earlier #)$- were gi!en to directors now they can buy their own shares being a director of the reliance group of industries. 0es all board members own e uity in the firm The board has the highest ethical practices in terms of corporate go!ernance. The constitution of a (oard of &irectors is appropriate as per )#(I1s go!ernance and re uirements and they ha!e the necessary e/pertise and commitment to discharge their responsibility in the most ethical manner The corporate go!ernance and in!estor relations of the Reliance industries show its high le!el of commitment to transparency in go!erning polices. It also brings out the responsibility of the board in discharging its responsibilities in the most ethical of manners. The corporate go!ernance policies speak of ensuring timely and rele!ant flow of information, a !ery ethical and sound system of risk management and internal controls to bring in transparency and soundness in financial reporting and disclosures. $f all rele!ant information to stakeholders, compliance to rules and regulations, fair and e uitable treatment to all stakeholders both internal and e/ternal. %y opinion2 Reliance industries corporate go!ernance charter is definitely a !ery holistic one and one which aims at bringing in the highest le!el of ethical functioning to its operations. I feel that with corporate ethics and principles are gaining importance in the company1s corporate go!ernance charters, Reliance should make the corporate go!ernance charters less technical. The !ery fact that these practices can be brought into practice leading to better performances has made it a !ery gettable proposition. ' management 3argon has to be translated into workplace ethics and companies should adopt this in practice. "orporate ethics need to be communicated and internalized and this becomes the organizational culture. "orporate !alues of uality, customer orientation, growth charters, employee work life balance, and high ethical standards are a few e/amples of corporate ethics. "lient and customer orientation and perception are of utmost importance and a critical success factor for corporate success. 4nderstand the concept of real clients and work towards constructi!e feedback and bring in uality e/cellence in all aspects of process, products, prices, go!ernance and ser!ice. 5uality should be the watchword and should be internalized and must become a habit. This will ha!e a direct effect on growth and benefit stakeholders. (rand reputation comes only then. 5uality and e/cellence has to become the

Anirudh Agarwal Management 595 Business Strategy Analytical Report #2 Good Corporate Go ernance !ractices " Boards o# $irectors

corporate philosophy by setting benchmark standards and monitoring performance astutely in an en!ironment, which allows for such e/cellence to be brought it. I also feel that the %& and ' should incorporate further inferences about accounting transparencies with strict regards to take o!er, mergers and ac uisitions %anagers are people of the management who promote the ideals of the management to the world. They are the face of the management. Though organizations do not ha!e formal code of ethical principles they belie!e that they need to ha!e an atmosphere of doing thing the right way. There are no set rules as to what is right and what is wrong and managers ha!e increasingly used this to define the approach of organizations to right thinking .6ormally managers belie!e in the outcome of business decisions and use this to protect organizations from unhealthy practices. In this conte/t managers ha!e to use and impose rules fairly and impartially .it is e/pected that managers act ethically not only in the interest of the organization but also in their deeds of organizational interest. They ha!e to understand and act according to interest of management and the stakeholders. The corporate social responsibility charter that has been painstakingly prepared is a part of adherence to strict rule of corporate go!ernance and e!ery act of my organization has been attuned to meet this end. 7hile e!ol!ing such work place culture it is important to understand that there are no biases and pre3udices while dealing with internal en!ironment and e/ternal en!ironment. There are strict policies for disclosures and transparency in working. I will also ensure that there are good systems of internal controls.

References2

http288www.ril.com8html8aboutus8profiles.html

Anirudh Agarwal Management 595 Business Strategy Analytical Report #2 Good Corporate Go ernance !ractices " Boards o# $irectors

Anirudh Agarwal Management 595 Business Strategy Analytical Report #2 Good Corporate Go ernance !ractices " Boards o# $irectors

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Anirudh Agarwal Management 595 Business Strategy Analytical Report #2 Good Corporate Go ernance !ractices " Boards o# $irectors

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