earth provides enough to satisfy every man's need, but not every man's greed. – mahatma...

‘Earth provides enough to satisfy every man's need, but not every man's greed.’ – Mahatma Gandhi

Values, Sustainability, Consciousness – walking the talk

Amita V. JosephBCF

Context in India

• Corruption Index India 94 out of 177 countries by Transparency International

• Ease of doing business in India 134 out of 189 economies ( Singapore number 1) by WB

• Weak regulatory environment• Growth of crony capitalism• 24 7 media & RTI• Community & civil society activism

SEBI Committee on CG in 2003

“ Corporate Governance is about ethical conduct in Business. Ethics is a code of values and principles that enables a person to choose between the right and the wrong and therefore select from alternative courses of action. Managers make decisions based on a set of principles influenced by value, context, culture.”

Narayana Murty

Dimensions of Reporting in India

Accounting evidence( reports)

Inclusion Reporting ?

SustainabilityGRI reports

GovernanceAnnual reports

Impact on Community ?

Some external drivers

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Some internal drivers

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Who pays non-compliance costs?

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Case studies

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Case study 1

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Your parent company’s accountants, recommend optimising the group tax arrangements.

They propose a scheme using the “Emerging Market Extraction Loophole” whereby tax payments to the Local government can be reduced by 95%.

The strong recommendation from your group Chief Financial Officer is that you implement these changes for the new tax year starting on 1st January.

How do you respond?

a) Comply with your group CFO’s recommendation.

b) Defer implementation of any tax changes for at least one year, to study alternative schemes.

c) Inform your group CFO that you do not propose to follow his recommendation and publish an article in the local financial press about the ethics of taxation.

Case study 1

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http://www.youtube.com/watch?v=SasiOBsU9LE

http://www.youtube.com/watch?v=VcZF_DxQ5cU

Case study 2

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What do you decide?

a) Claim on the insurance.

b) Pay for the repairs.

c) Pay for the repairs and speak to the colleague about the importance of ethical behavior.

d) Speak to the colleague about the importance of ethical behavior, then claim on the insurance anyway.

The roof sealing of your packaging line is broken and water is leaking into the building. The repair cost is L$ 130,000.

A colleague suggests that if you report this as being property damage resulting from an attempted burglary, your insurance policy will cover L$ 120,000 of the total repair cost.

http://www.youtube.com/watch?v=aLA1cRQbilM

Case study 3

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What do you decide to do if you are ? Why?

a) Procurement Manager

b) Sales Manager

c) Finance Director?

A popular car manufacturer sent to you and your supervisor an invitation to visit their factory facilities in Europe to understand the quality, efficiency and security features of the 2014 new car models.

They will pay for the air tickets, hotels, meals and out of pocket expenses. The 7 days visit program includes an intense 2 day factory visit and will continue with cultural and entertainment events in 3 other cities in neighboring countries.

New Companies Act, 2013

• Will the new companies Act be a game changer?

• Focus on role of board and Directors• Role of Auditor• Whistle blower protection• Class Action Suits• Definition of Fraud • CSR Section 134 and 135 and Reporting.

Gross National Happiness - Bhutan

• The four pillars are• Good Governance• Sustainable socio economic development• Cultural preservation• Environmental Conservation• Dalai Lama about Universal Responsibility• Aurobindo “Management by Consciousness”

Gandhiji on Trusteeship

• “Suppose I have earned a fair amount of wealth either by way of legacy or by means of trade and industry. I must know that all that belongs to me is the right to an honorable livelihood no better than what is enjoyed by million of others, the rest of my wealth belongs to the community and is to be used for the welfare of the community “

• Trusteeship provides a means of transforming the present capitalist order of society into an egalitarian one. It gives no quarter to capitalism.