Triple Bottom Line and Corporate Governance – By Confederation of Indian Industry

(Summary)

The primary purpose of companies is to maximize shareholders wealth and supply goods and services to the customer. While bearing this purpose of its existence it has to execute many functions. These include delivery of products and services as per customer's needs. For this it has to tap existing and new markets with the help of sales and marketing functions in a manner that enhances brand equity and reputation. They employ adept manpower, train and skill them for a suitable jobs, build infrastructure and deploy technology, design and implement competitive strategy, counter risks to avoid major losses and foresee overall functioning according to set rules and regulations.

This is the way business is done and it involves a web of departments, human resources, technology, and infrastructure. Risk management is an essential ingredient towards reaching this desired purpose. It comes in many forms: natural calamity like floods, cyclones, air pollution, disasters due to climate change, company specific risks like labour unrest, corporate fraud, money laundering and many more. Company's success rests on how it mitigates these risks and avoids any pitfalls that threaten its value and equity.

It is the responsibility of boards along with CEO and chairman to direct the company to move in a particular direction. Thus their function within the company is of utmost importance. They govern the company by establishing broad policies and objectives, ensure the availability of adequate financial resources, approve budgets, and account to stakeholders for organizations performance. This function is very well termed as “Corporate Governance”.

Read More ...

Comments / Suggestions / Inputs may please be forwarded to:

The Executive Director
National Foundation for Corporate Governance
E-mail : ed.nfcg@cii.in

Shalini Budathoki
Director (CII), NFCG
E-mail : shalini.budathoki@cii.in

 

Home  Contact Us  Feedback  Site Map  Links  FAQs
Copyright © 2014 National Foundation for Corporate Governance (NFCG)
All Rights Reserved. Disclaimer