Corporate Governance And Financial Scandals In India - Free Essay Example

Sample details Pages: 5 Words: 1610 Downloads: 3 Date added: 2017/06/26 Category Statistics Essay Did you like this example? INTRODUCTION: This research will identify Corporate Governance in India and the reasons of its failures that lead to the financial scandals in India. As the big companies, Enron and WorldCom, illegal operations were disclosed; the worlds business came into shock. Many other companies in the world came under this attack like Parmalat in Italy, all had problems in their corporate governance. Don’t waste time! Our writers will create an original "Corporate Governance And Financial Scandals In India" essay for you Create order This showed that the whole world had a problem in their corporate governance. Unlike the developed countries, the developing countries had corporate governance as the main issue far before these scandals took place as corporate governance and the economic development are linked as this helps in development of financial system which results in increase of growth and reduction in the poverty. Thus research tells us why there are corporate governance failures in big organizations and explains the factors that influence the corporate governance like ownership structure, structure of company board, financial structure, etc. LITERATURE REVIEW: 1.1.1 Corporate Governance: An overview Corporate Governance is an extensive term that refers that the rules, processes, responsibilities and the privileges are shared by the corporate participants. It basically says that how the investors assure that they get a return on their investment. It is the decision making committee by which the managers work on their duties in order to maximize investors wealth. Acc to Keasey et. al.(2005) approaches Corporate Governance as, à ¢Ã¢â€š ¬Ã…“Corporate Governance has two requirements, micro level and macro level. At the micro level it needs to ensure that the firm, as a productive organization, functions in pursuit of its objectives. Thus if we follow the traditional Anglo-American conception of the firm as a device to further the well being of its owner-shareholders, good governance is a matter of ensuring that the decisions are taken and implemented in the pursuit of shareholder value. At the macro level corporate governance, in the words of Federal Reserve chairman Alan Greenspa n, à ¢Ã¢â€š ¬Ã‹Å"has evolved to more effectively promote the allocation of the nations savings to its most productive use. à ¢Ã¢â€š ¬Ã…“ A good corporate governance should aim at long term benefits to the shareholders and other stakeholders. It can reduce the national financial crises. Corporate governance and currency depreciation have inverse relationship. Asian crisis of 1997 is one example of poor corporate governance norms. The manager should be working in the interest of the shareholders. Managers have the control over the business and may not act in the benefit of the shareholders. This is the common problem all over the world. On the whole a good corporate governance can help in preventing the financial scandals that happened in the world. 1.1.2 Corporate Governance in India: In India, corporate governance was not understood till early 1990s. Indian legal system is based on the English common law and gives the highest protection to the investors and to lenders as well. The corruption rate is very high in India. The most important development in corporate governance and investors protection in India is the establishment of the Securities and Exchange Board of India in 1992,(Chakrabarti et. at.,2007). It was established to monitor the stock trading which helped in making the basic rules for the conduct of corporate in India. Reforms were made to make the people rely more on market than on government. The public sector was targeted inorder to make it more efficient and to bring out the government holdings for sale to the public. Banking sector reforms were also made to bring them to the international levels. In 1998 a code- Desirable Corporate Governance in India and the companies followed it,(Mallin,2010). Many who didnt follow it experienced losses and end ed up in losing the confidence of people. SEBI also made a committee on corporate governance in 1999 headed by Shri Kumar Mangalam Birla and report was published in 2000,(Mallin,2010). This concentrated on the capital markets growth. The code is to be followed by the both public and private sector companies. The code tells about the structure of the company, the role played by them and what is everybody entitled for. i.e. Board of Directors, Nominee Directors, Chairman of the board, Audit committee, Remuneration committee, Shareholders, how corporate governance is implemented, management of the company and the board procedures. Though India has one of the best corporate governance laws but the implementation of them is very poor. In India, the main business type is the public limited companies. The legal system is the English Common Law, the structure of the Board is unitary and the ownership is basically family ownership or corporate but now the institutional investors ownership is increasing. 1.1.3 Financial Scandals: The corporate governance is influenced by the ownership structure, the structure of company boards, the financial structure and the institutional environment. If any of these doesnt work properly then the scandals are prone to happen. The people choose the board of directors, which further appoint managers for different work who actually work daily in order to maximize shareholders wealth. Its the board of directors that decided the corporate objectives and the managers are the one who carry them out. The main reasons that cause corporate governance to fail are as follows: the most important is that the work done is not watched properly and is very weak. There is not much respect for the shareholders, and moreover the management has the complete authority who works for their own benefits rather than the shareholders wealth maximization (KPGM, 2009). The few corporate scandals that have taken place all over the world are like Enron (USA), WorldCom (USA), Satyam (India) and many more ( Mehta et. al). RESEARCH QUESTIONS AND OBJECTIVES: The research aims to find the corporate structure and its role in fulfilling the objectives of an organization. The research about the present corporate governance structure and the changes it has come overtime and further any changes required according to international norms. The main objective of the research is as follows: How can corporate governance be more stringent to steer clear of scandals? How important is the Board structure and the Audit committee on the board for good Corporate Governance? Is there any alteration required in the current structure of corporate governance to make it work more efficiently? METHOD: The research is to be done, in particular, for the detailed information on the corporate governance and the reasons of its failure which result in the fall of huge companies based on the following two reasons i.e. the Board structure and the Audit committee. The qualitative approach will be used. The primary data collection for the Board structure will be done based on two companies i.e. Tata Consultancy Services (TCS), India and Infosys Technology Limited (India) which can be compared to the one of the major company of India, Mahindra Satyam, which failed due to poor corporate governance. All three are the software companies. Taking direct interviews with the high officials on the management committee will be of helpful in finding out the deep structure and changes that are required for the corporate governance to work more efficiently and how does it still help the companies to perform up to their shareholders expectations. The Board structure can be discussed by knowing the number of members on the board, their independence. Auditors play an important role because due to their reports people put faith in the company. The audit members will be found and the actual knowledge of the members will be collected from the CMIEs prowess database which will help in telling whether the committee has enough knowledge in order to fulfill the shareholders demand or not. Secondary data is the data in which researcher is not involved in the collection (Dale, Arber, and Proctor 1988). The secondary data collection also got some advantages as cost and time, high-quality data, opportunities for longitudinal analysis, more time for data analysis and reanalysis may offer new interpretations (Knight and Latreille, 2000). Secondary data will be collected from company website, annual reports, books, journals, newspapers and magazines. The data collected as secondary can provide important information about the company and can prove supportive in research. 3.1 ASSESS RESEARCH QUALITY: Reliability: The reliability of interview can be ascertained by ensuring that all questions are clearly understandable to all the interviewees and the replies received can be coded explicitly. The answers received from interview should make sense and must prove helpful to the research. The self-completion questionnaire must be filled by employees without any pressure from their managers. Therefore, a pilot test must be conducted before issuing of questionnaire (Saunders et al., 2003). Validity: The validity is concerned with the issue that whether the data collected is related to what it is expected to be. According to Saunders et. al(2003), validity is related to a question of casual relationship between two variables? The research will be conducted from February 2010 to May 2010. And there will be direct contact with senior managers in DAIPL to keep updated about any change in their motivational strategy or any change made internally. This will ensure the validity of the research done. Ethics: The code of ethical conduct stated that it is the responsibility of the researcher to assess carefully the responsibility of harm to research participants, and, to the extent that it is possible, the possibility of harm should be minimized (Bryman and Bell, 2007). Therefore, research conducted will be done only when managers and employees are willing to participate in research. The names of all participates would be kept confidential and not revealed at any reason. The questions in the interview will not be formulated in manner that they show any participants identity. Accessibility: The researcher here is been granted the right to access and publish all the findings that are relevant to all ethical requirements. TIME SCALE:

Sustainability From A Strategic Business Perspective Essay

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How Different Approaches and Power of Leadership Manage Organizational Stress Free Essays

Affiliative leadership style is ineffective in complex challenges of an organization. As affiliative leadership refers to team building when a department re-organizes itself then no co-ordination in new members exists. Transformational leadership approach that causes change in individuals and social systems in organizational already working projects. We will write a custom essay sample on How Different Approaches and Power of Leadership Manage Organizational Stress? or any similar topic only for you Order Now Which consequence on management to reorganize the already done work that causes frustration and lack of compatibility in employees which in case increase stress in management. Negative leadership style of a manager can lead to low measures of organizational commitment of sub ordinates in their unorganized reports. Employees working under coercive managers are unlikely to be committed, and more likely to resist the manager, cause turnover of employees. When managers low consideration is given to organizational variables that influence the nature and impact of leadership. Management is effected by both internal and external factors . Internal factors conflicts, non-specific fears, fears of inadequacy, critical environment and diversification. External factors competition and threats . These factors effect the working environment, profitability, motivation of employees and organizational culture. Literature Review According to Erkutlu and chafra (2006) Bases of leader power and subordinate’s job stress are significantly related with each other. This literature suggest that individuals having power at various levels enforce job stress in hospitality industry. According to de Jong and hartog (2007) Among all 13 leadership behaviours one is so crucial and got little bit noticed from researchers. Leaders through idea generation and delebrate actions are fullfilng their duty by motivating employee’s innovative behaviour. In leading positions a connection seems between power and famininity which is different from that of western literature on leadership. So that sometimes females took advantage of their power in a negative way (Quader oplatka 2008). With an international CEO and other significant’s interview, a distinct experience is extracted that shows no-one get relieve on the basis of gender discrimination (kakabadse, kakabadse, lee-davies 2007). Result of this article shows that there are some common as well as different elements in both of the leaders. One consider himself that he can understand the learning problems and the other one about the teaching duties (Zhong ehrich 2010). According to Hetzler and sebastian (2010)To enforce individuals to make unbiased decisions different changes have been made in procedures, structure and technology. A such enviornment is groomed in which humans and machines can interact with each other for better decision making. According to Fennel and Hope-Arlene (1999) This research gives a number of examples including: Organizationz in which power was given to women leaders, their will power to run school organizations and experience of those who work with them. To implement the ethics plan successfully it is necessary thet those plans must be practiced by organization’s stakeholders firstly. In an organization, to make certainity of ethics, strong planning is compulsory (Belak, duh, mulej, strukelj 2010). System models were used to remove the hurdles, in an organization, towards its assessment. It is found that if more appropriate system models will use it will lead organization to superior results (Ambrozm derencin 2010). The article shows that in market place the main logic of business is to have a good start-up of business and it will go on for long time. If more risk factor is involved it will result in higher profit. Boundries must be carefully chosen for the protection of core capital (Wasilewski Michal 2010). According to Smith, Bruyns and Evans (2011) quantitative analysis of the stories to recognize many project managers’ optimism discussion that powerfuly effect IT project success. Futhermore, it was decided that IT project success was both positively and negatively effect stress. To improve the possibility of project success it was decided that IT project managers should have positive and based on reality level of optimism based on a highly approved project plan. While the project team should anticipate and willingly accept stress during the project , this shoul be carefully managed. As stress-related health-cost is more and more importance is attached on decreasing stress. Industries has identified the benefits of minimizing stress through increased productivity and decreased health-care costs. As worldwide competition increases , corporations who can teach their workers how to manage and control stress in positive side may well have find a strategic benefits (B. Donovan H. Kleiner 1994). The conclusion of structural equation a example to disclose the following; job stress is the preceding of frustration, while frustration can to greater extent anticipate physiological stress for C-PMs; job stress is negatively connected only o their task performance; both frustration and physiological stress are negatively connected to their organizational proceedings; task performance goes positively to their interpersonal performance. Recommendations are given based on conclusions to increase their stress and performance level (Leung, Chan, Dongyu 2011). According to Hede ( 2010) eliminate stress techniques are accepted for use by manager’s in practice to k eep away from emotional reactivity and to manage stress. The TIME scale has five factors, and each has generaly approved internal firmness and test-retest accuracy. Time scale factors results were negatively connected with both turnover purpose and stress (Burt, et al 2010). According to Coffey, Dugdill and Tattersall ( 2009) Key Obstacle include major changes taking place within the organizations; staff are doubtful to management and showing doubt. deficiency of resources and difficulties in translating findings into actions. Key factors important for success includes: strong involvement from senior management, staff participation, realistic expectations,fullfilment of duties and time frames. According to Fevre, S. Kolt and Matheny (2006) There is little experiment to prove or disprove something on which organization based stress management interventions as first approaches. Secondary, individual-focused approaches be employed prior to the introduction of primary methodologies within a client organization. According to Donaldson-Feilde, Yarker and Lewis (2008) The manner of behaving or acting to recognize or establish as being a particular pers on or thing were grouped into a subject of discourse to create a framework of 19 management ‘‘competencies’’ for keep from occurring and minimizing stress at work. Level of recognize frustration is related to degree of recognize and understand stress and degree of to become aware stress is related to type of leadership employed by managers (S. Gill, B. Flaschner Shachar 2006). It come forth into view or notices that individuals to change their ability to manage stress. Self perception, locus of control, behavioral designs or Styles and flexibility or inflexible and strict, all influence on stress management abilities (Treven Potocan 2005). According to Yu and Miller (2005) In manufacturing industry the generational groups have different characteristics of work and require different styles of leadership and it is shown by research but in education sector there was no difference of work and style of generational group. The effects of these two types task –oriented and socio-emotional leadership is shown by this finding that the follower satisfied with this. To find interaction the product term method is used . interaction between pressure and support was nonsignificant (Casimir Keith Ng 2010). According to Rohmann and Rowold (2009) Female leaders have more transformational behavior than male leaders and it is shown in four samples. Furthermore, female leaders were more effective and more satisfied than their counterparts. In the team and organization leadership style whether it is transformational , transactional or ambidextrous act as a strategic resource that has an operational effect in the learning development (Bucic, Robinson, Ramburuth 2010). There is a misalignment in performance of organization due to the problem of climate and leadership style . t supports the third hypotheses partially and fully supports the fourth hypotheses (Haakonsson, Burton, Obel, Lauridsen 2008). According to Awan and Mahmood (2010) The Professionals were not sensitive about the relationship of these three variables. A majority of professionals considered that there chief librarians had an autocratic leadership style, and they adopt bureaucratic culture and these are committed with their organizations and it shows that they are in the favor of result oriented culture. In public sector there is a tension between two aspects one is to revolution in bureaucracies because of improvements, innovation and high flexibility. And other is to maintain standards and procedures for better quality services. This study shows change in leadership style and organizational change (James, 2005). Employees’ job satisfaction depends upon the leadership style of managers. Nevertheless, participative management is not always a good management style. Managers should select the best leadership style according to the organizational culture and employees’ organizational maturity (Mosadegh Rad Yarmohammadian, 2006). It is a path that provides support for some hypotheses. Strength of relationship between the leadership vision and two dimensions of organizational structure are effect due to predicted mediations. NFP’s scored higher on socially responsible culture orientation than FPs, while FPs scored higher on competitive culture orientation (Sarros, Cooper, Santora, 2011). According toTabassi and Abu Bakar (2010)This research shows about leaders ‘different qualities and style such as leaders’ orientation with people, about their ask in effective way and their qualities which helps juniors to become efficient leader by going with their own decisions and work with employees empowerment. From the above literature review understand hypotheses were derived to analyze How Different approaches and power of Leadership Manage Organizational Stress? H1: Strong positive association of leadership style with stress management. H2: Strong positive association of leadership power with stre ss management. H0: No strong positive association of leadership style with stress management. H0: No strong positive association of leadership POWER with stress management. How to cite How Different Approaches and Power of Leadership Manage Organizational Stress?, Papers

Art Old vs New Essay Example For Students

Art Old vs New Essay The piece by the Italian artist Ugo Da Carpi is a beautiful picture. The artist used great detail in creating the man holding the conk shell. His body is very well drawn in detail depicting his muscle structure as well as the use of light and shadow. It shows the man holding a shell and attempting to read a book. He seems to be holding a pointer of some type in his right hand using it to hold down a book. By the look he might be holding the book down due to wind, his hair seems to be flowing and clothing flapping. Keith Haring has drawn a very plain picture of two people. It seems to me that one man is killing another man maybe in the name of god. I say that because he is holding a cross. The use of lines around the men shows me action and lots of it. Im not sure what the purpose of the light bulb is in the upper left corner. Carpi must have had a distinct purpose for this work; Im not exactly what that was. There is a chicken in the background and he is reading books. This is an Italian artist so it could possibly be a god or some type of European saint. Im stuck on the meaning of the chicken. The man seems to be trying to educate him self maybe on scripture, it gives me a real biblical feeling. Harring drew a simple, non-color, bland picture. Its not the actual use of color and lines that makes this good. I think is intent was in the actions of the figures. One man or thing or person is killing another form of life. At the same time holding a cross symbolizing religion. I think the light bulb may symbolize an idea. As if the meaning is that its a bad idea to kill and its a sin. If I had to choose between both of the works of art based upon which one I like most I would choose Carpis. I like his use of detail and just the whole way the piece flows together. The other is just plan and I think was not intended to be visually pleasing but instead to make you think or get a point across on I particular subject. Dont get me wrong I dont think it makes Haring any less of a good artist, he chooses to use his talent in a more simplistic way to get a point across. I choose Carpi solely based upon being visually pleasing. I cannot put an exact interpretation on the work but just the flow and the use of texture and color makes it more attractive to my eye.