Corporate Governance in GE –
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Transcript of Corporate Governance in GE –
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Corporate Governance in GE – IS IT A MODEL TO IMITATE…???
ANAND SARAFFARNAB MUKHERJEEDEBAYAN ROYGARIMA SHROFFVIVEK AGARWAL
Under The Guidance Of:
Prof. SUDEV DAS
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“Corporate Governance is the system by which companies are directed and controlled…” -Cadbury Report (UK), 1992
“…fundamental objective of corporate governance is the ‘enhancement of the long-term shareholder value while at the same time protecting the interests of other stakeholders.”
- SEBI (Kumar Mangalam Birla) Report on Corporate Governance, January, 2000
Some Definitions
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Corporate Governance
•The Manner in which a Corporation is RunAchieving its ObjectivesTransparency of its OperationsAccountability & ReportingGood Corporate Citizenship
•The Processes & Operating Relationships that Best Achieve Organizational Goals
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MAIN ISSUES IN CORPORATE GOVERNANCE
Role of Board of Directors
Composition of the Board
Audit Committee
Shareholder’s Committee
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Greater emphasis on leadership by example
Boards are returning to basic value systems
• Each culture should look back to its roots for value systems
• India’s centuries old principles of “Dharma”
Strengthening the moral fiber
of the corporation
Value systems are helping build corporate governance framework for companies
Boards are redefining value creation
• Not merely increase in stock prices
What is the Current Status on Corporate Governance Practices?
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History of GE
• CEO : Jack Welch • Year Est. : 1878• Nationality : United States
• Industry : Electron products
Innovation=Imagination
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Vision of GE
Innovative changing
Estimated as blue chip company
Consistent excellence in leadership
Giving ideas a quick try
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GE International
"As one of the world’s most diverse and best performing global enterprises - recognized repeatedly for leadership and innovation - they offer our employees an environment where what we imagine we can make happen, developing new technologies and services to grow our businesses.
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BIBLE OF GE ‘THE SPIRIT AND THE LETTER’ Former CEO Jack Welch (now retired), introduced this concept at
GE. During his work period GE was prized most deal-making, cost-cutting and efficient organization. Every day, everyone at GE has the power to influence company’s reputation — everywhere they do business. The Spirit & the Letter helps to ensure that, after more than 125 years, we still conduct our affairs with unyielding integrity. For well over a century, GE employees have worked hard to uphold the highest standards of ethical business conduct. They seek to go beyond simply obeying the law — they embrace the spirit of integrity. GE’s Code of Conduct articulates that spirit by setting out general principles of conduct everywhere, every day and by every GE employee.
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GE’s code of conduct The laws and regulations governing the business conduct world wide Be honest, fair and trustworthy in all your GE activities and relationships. Avoid all conflict of interest between work and personal affairs. Foster an atmosphere in which fair employment practices extend to every
member of the diverse GE community. Strive to create a safe work place and to protect the environment. Through leadership at all levels, sustain a culture where ethical conduct is
recognized, valued and exemplified by all the employees. It also provides other information regarding the rules and regulations of
the business like hoe to deal with the government; customers etc. Employees and leaders who violate the spirit or letter of GE’s policies are subject to disciplinary action up to and including termination of employment.
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Other Important Principle
Six sigma Fair practices Base employment decisions Provide a work environment Respect the privacy rights Take lawful affirmative actions
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Working Environment
Operating with Integrity Work and Life Balance Quality of work life
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Organizational Behavior At GE Leadership at GE Corporate Leadership Development Communication GE Board of Directors GE corporate ombudsperson Within the business Measuring Performance Stress Management Organizational Culture Women’s network Competitive pay and a great job Providing security for family
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Employee Programs United Way Parenting assistance Elder care assistance Financial assistance GE star scholarships for children of GE
employees Legal advice Work advice
OTHER SERVICES PROVIDED BY GETO ITS EMPLOYEES
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CORPORATE SOCIAL RESPONSIBILITY (CSR)
•Donation to Disabled American Veterans•Donations to Memorials and Museums•Special Programs•Recruiting from the Military•African American Forum•Asian Pacific American Forum•Hispanic Forum•GLBT Forum•Disaster Relief Fund•Planet Paint Fest•E-Community in Asia•Entrepreneurship and Employment Training for Youth in Indonesia•Rebuilding Efforts in South Asia
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FAILURE
Defense Contracting Fraud History of GE Labor Relations Other Pollution Issues
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Why we choose GE GE and its employees are committed to being a good corporate citizen
through high ethical standards, leadership in corporate governance, environmental compliance and community engagement.
GE continues to earn the respect of the business world. Once again, GE topped Fortune magazine’s top 500 companies. It holds 6th position consecutively for the second time.
GE is recognized as being among the world's best-run companies and was named the World's Most Respected Company for 2003 for the sixth consecutive year by the "Financial Times". GE was also presented with the Catalyst Award 2004 for its innovative, effective and measurable initiatives to advance women employees. GE was honored as one of the 100 Best Companies for Working Mothers
GE has a long and proud history of supporting the communities where its employees live and work. Contributing more than $140 million and over one million volunteer hours worldwide in 2003, GE is making an impact in local communities, educational standards and the environment in its communities all over the world.