Corporate Governance in
GE –
IS IT A MODEL TO IMITATE…???
ANAND SARAFF
ARNAB MUKHERJEE
DEBAYAN ROY
GARIMA SHROFF
VIVEK AGARWAL
Under The Guidance Of:
Prof. SUDEV DAS
Some Definitions
“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
Corporate Governance
•The Manner in which a Corporation is Run
Achieving its Objectives
Transparency of its Operations
Accountability & Reporting
Good Corporate Citizenship
•The Processes & Operating Relationships
that Best Achieve Organizational Goals
MAIN ISSUES IN CORPORATE
GOVERNANCE
Role of Board of Directors
Composition of the Board
Audit Committee
Shareholder’s Committee
What is the Current Status on
Corporate Governance Practices?
Greater emphasis on
leadership by example
Boards are returning to
basic value systems
• Each culture should look back Strengthening
to its roots for value systems
• India’s centuries old the moral fiber
principles of “Dharma” of the
corporation
Value systems are helping
build corporate
governance framework
for companies
Boards are redefining
value creation
• Not merely increase in stock
prices
History of GE
• CEO : Jack Welch
• Year Est. : 1878
• Nationality : United States
• Industry : Electron products
Innovation=Imagination
Vision of GE
Innovative changing
Estimated as blue chip company
Consistent excellence in leadership
Giving ideas a quick try
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.
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.
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.
Other Important
Principle
Six sigma
Fair practices
Base employment decisions
Provide a work environment
Respect the privacy rights
Take lawful affirmative actions
Working Environment
Operating with Integrity
Work and Life Balance
Quality of work life
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
OTHER SERVICES PROVIDED BY GE
TO ITS EMPLOYEES
Employee Programs
United Way
Parenting assistance
Elder care assistance
Financial assistance
GE star scholarships for children of GE
employees
Legal advice
Work advice
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
FAILURE
Defense Contracting Fraud
History of GE Labor Relations
Other Pollution Issues
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 6 th 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.
THANK YOU…!!!
