Corporate governance is a significant process for orderly and responsible growth and development in a free market society, said Rajiv Choubey, Head, Legal and Company Secretary, Sterlite Industries Ltd, Tuticorin.
He was delivering a lecture on ‘Corporate Governance and Companies Bill 2012’ under the Business Line Club of the Post-graduate Department of Business Administration, Noorul Islam University, Thuckalay, near Nagercoil, recently.
The event was sponsored by Tamilnad Mercantile Bank (TMB), Tuticorin.
He said the concept seeks to set and enforce clear lines of responsibilities and accountabilities, given the vision and mission of the institution, in a systemic and regulatory framework answerable to stakeholders
Outlining the significance of the concept, he said that with the private sector accorded a prime role in a free market economic set up, it becomes incumbent on the part of big companies and institutions that utilise the social and economic resources as part of trade and commerce in their efforts to generate wealth for themselves, to acquire the same through an ethical and legal manner, rising up to international competencies and serve the interest of the society through their social responsibilities.
He said that the concept is both significant and necessary as it helps to build institutions, business climate, improve operational performance and reputation, manage risk and play a positive role in a proactive manner in the economy. In this connection, he referred to the Enron, WorldCom and Satyam debacles that resulted in disastrous consequences. In short, the concept helps in the survival, sustainability and growth prospects of the companies and institutions, he added.
He then outlined in detail the corporate governance practice in Sterlite Industries and how its corporate social responsibilities were being discharged in diverse fields, such as education, health and skill development in respect of Tuticorin district, where the industrial unit is located.
Earlier, S.Sekar, Chief Manager , TMB, Trivandrum, spoke on the emerging employment potential in the banking sector and explained about the various schemes of the bank in education and entrepreneurship.
Dr. Chandrasoodan Nair, Director and Dr. D.Kinslin, Head of the Department, were also present.
(With inputs from G. Satish Kumar)