If corporate governance means responsibility towards stakeholders and share holders there are other parameters too. Business and its corporate have responsibility towards employees, consumers and government. Corporate governance at this juncture creates a situation which calls for social commitment.
A corporate entity is made up of various factors. Labour is a generic element in a business as well as of corporate entity. Labour welfare forms the pillar of corporate responsibility towards it. The corporate responsibility towards labour gets maximum exposition in the labour welfare schemes followed by the corporate.
A good corporate governance on labour requires labour welfare scheme like medical aid, leave travel concession, training, maternity benefit, bonus, gratuity. Unfortunately, in India many corporate are not paying P.F. & E.S.I to the respective government authorities. In some cases these practices are deliberate.
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In India, Tata is the group which has explored and introduced a lot of schemes for the benefit of labour. Later on many organisations have followed the suit. Employment in public sector has many pro- labour schemes. One of the objectives of the public sector, in India they would be ideal employers.
It has also been seen; in many cases taking advantage of the security umbrella labour unions could not promote good work culture among the employees. This has been the reason of poor productivity in both public as well as private sector.
Business Community’s responsibility towards government implies compliance of legal norms. It also requires payment of taxes, helping the government with its expertise when there is need. Unfortunately a number of enterprises do not extend their cooperation with the government in case of need. A large number of business houses have faced raids, swoops, house arrests.
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A good number of businessmen have also escaped the taxes, defaulted payment of interests of commercial banks and other debtors. In many cases these defaults and anomalies were wilful. At this, those businessmen did not cooperate with the government, banks and cheated the society as well.
The duty of businessman also has bearing on the consumers. Business depends on consumer satisfaction. But in view of near monopoly situation or oligopolistic character of India market consumers have very limited choice in expressing for alternatives in the market.
Businessmen should not take advantage of this situation and serve the consumer with profound and consistent quality and sound after sales service. Serving the customer up to the level of satisfaction forms an essential part of business. That also forms part of the business ethics. Now let us discuss and explore other aspects of Business ethics.