Professional Documents
Culture Documents
Neelu Nakra
CORPORATE GOVERNANCE
Set of processes, customs, policies, laws and institutions affecting the way a corporation is directed, administered, or controlled. To ensure the accountability of certain individuals in an organization through mechanisms that try to reduce or eliminate the principal-agent problem. Since 2001, particularly due to the highprofile collapses of a number of large U.S. firms such as Enron Corporation and WorldCom.
PRINCIPLES
Rights and equitable treatment of shareholders Interests of other stakeholders Role and responsibilities of the board Integrity and ethical behaviour Disclosure and transparency
CASE STUDY ON
ITC LTD.
Board of Directors
Audit Committee Compensation committee Nominations Committee Investors Service Committee
Divisional/Strategic Business Unit (SBU) Management committees each headed by a Divisional/SBU chief executive Business include FMCG, Hotels, Paperboards, Packaging, Agri. Business and IT
Corporate Functions each headed by a HOD Corporate functions include: Planning & Treasury, Accounting, Legal, Secretarial, HR, Corporate Communication & Affairs, Internal Audit, R & D
The role of the Board of Directors is to provide direction and exercise control to ensure that the Company is managed in a manner that fulfils stakeholders aspirations and societal expectations.
Stakeholder Engagement
ENVIROMENTAL PERFORMANCE
A CARBON POSITIVE CORPORATION 2 YEARS IN A ROW
Conserving energy through audit, benchmarking, and use of next practices to achieve the energy required per unit of production. Using renewable sources of energy. Creating a positive environmental footprint through forestry initiatives that enable Carbon Dioxide sequestration.
Our commitment to pay employees a competitive remuneration is reflected in a 15% compounded annual growth rate in 'employee costs' in the last 3 years.
During 2006-07, Full time direct employees numbered over 21,000 of which nearly 2,100 employees in the Leaf Tobacco business were engaged on a seasonal basis due to the very nature of the Leaf business. Nearly 12,000 of the full time direct employees are members of various unions. During the reporting period, four units signed long-term agreements with the recognised unions across different businesses.
We achieved 12.5% reduction in Lost Time Accidents in 2006-07 by a proactive risk management approach, adoption of benchmarked practices, state-of-the art engineering control measures, comprehensive fire safety protection systems and best-in-class electrical, regular training of employees and service providers and employee involvement through suggestion schemes, celebration of safety events and other motivational programmes.
Accident Free Units Injury Rate and Lost Day Rate Occupational Health
SOCIAL PERFORMANCE
During 2006-07, the total number of service providers contracts was about 2,075 of which 460 operated within the Companys premises offering engagement opportunities to over 5,000 people.
PREPARED BY: Kalpesh Agrawal 4 Sandip Borse 17 Preyal Dalwadi 27 Hardi Mehta - 58