What were the initiatives taken by the company to remedy the situation and how far do you think they are adequate and effective to eliminate recurrence of such unethical practices in future?
ITC believes transparency enhances accountability. ITC believes that empowerment is a process of actualising the potential of its employees. ITC replied to the showcase notice in Julystating it did not accept Itc india unethical practices legal liabilities while offering financial support to ITC Global.
Empowerment unleashes creativity and innovation throughout the organisation by truly vesting decision-making powers at the most appropriate levels in the organisational hierarchy.
Although the company went through a tough phase during the late s, it succeeded in retaining its leadership position in its core businesses through value additions to products and services and through attaining international competitiveness in quality and cost standards. The company and its directors inspected documents relating to the notices, with the permission of the ED, to frame appropriate replies to the notices.
Through this three-tiered interlinked governance process, ITC claimed to have struck a balance between the need for operational freedom, supervision, control and checks and balances. What remains to be seen is whether the company would be able to come out unscathed from the various charges of unethical practices against it.
ITC believes that control is a necessary concomitant of its second core principle of governance that the freedom of management should be exercised within a framework of appropriate checks and balances.
The Company believes that empowerment, combined with accountability, provides an impetus to performance and improves effectiveness, thereby enhancing shareholder value. Globalisation has significantly heightened business risks and in response many of the Indian companies have strengthened norms of transparency and good governance.
This committee was headed by the Chairman and included chief executives of the main businesses to run the day-to-day affairs of the company until the company had a new corporate governance structure in place. The Company believes that unethical behaviour corrupts organisational culture and undermines stakeholder value.
While ITC blamed the Chitalias and BAT for its troubles, some others blamed the legal framework that forced companies to resort to dubious business practices. On account of the provisions for appeals and counter-appeals, these cases stood unresolved even in early ITC believes that any meaningful policy on Corporate Governance must provide empowerment to the executive management of the Company, and simultaneously create a mechanism of checks and balances which ensures that the decision making powers vested in the executive management is not only not misused, but is used with care and responsibility to meet stakeholder aspirations and societal expectations.
Control should prevent misuse of power, facilitate timely management response to change, and ensure that business risks are pre-emptively and effectively managed.
As a part of this settlement ITC also withdrew its objections to few of the claims of Chitalias, for exemption of their assets.
ITC restructured its management and corporate governance practices in early Management must have the executive freedom to drive the enterprise forward without undue restraints; and This freedom of management should be exercised within a framework of effective accountability.
ITC believes that corporations like itself have a responsibility to set exemplary standards of ethical behaviour, both internally within the organisation, as well as in their external relationships. Each of these businesses is vastly different from the others in its type, the state of its evolution and the basic nature of its activity, all of which influence the choice of the form of governance.
Despite various hurdles, the company was a financial success, which analysts mainly attributed to the reformed corporate governance practices.
In earlythe Chitalias proposed a settlement, which ITC accepted. Board Committees Preamble Over the years, ITC has evolved from a single product company to a multi-business corporation. However, ITC had created a 1. ITC believes that the Board of Directors are accountable to the shareholders, and the management is accountable to the Board of Directors.
ITC believes that the practice of each of these leads to the creation of the right corporate culture in which the company is managed in a manner that fulfils the purpose of Corporate Governance. Following the court judgment, the Chitalias filed for bankruptcy petitions before the Bankruptcy Court in Florida, which was contested by ITC.
Definition And Purpose ITC defines Corporate Governance as a systemic process by which companies are directed and controlled to enhance their wealth generating capacity. Following the agreement, the Chitalias agreed to the judgement of the Bankruptcy Court, which disallowed their Bankruptcy Petitions.
What were the consequences faced by the company on account of these charges. They are to act as trustees to protect and enhance shareholder value, as well as to ensure that the Company fulfils its obligations and responsibilities to its other stakeholders.
Give reasons to justify your answer.
They represent a coalition of interests, namely those of the shareholders, other providers of capital, business associates and employees.Business ethics of ITC 1. They are our Energy Superhighway! ITC Holdings Corp.
(NYSE: ITC) invests in the electricity transmission grid to improve electric reliability, expand access to markets, lower the overall cost of delivered energy & allow new generating resources to interconnect to its transmission systems.
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ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part." focus, respect for people, excellence, innovation.
As a responsible corporate citizen, ITC pays utmost attention to issues such as corporate ethics, transparency and sustainability. Essays - largest database of quality sample essays and research papers on Itc India Unethical Practices.
Unethical Business Practices Of Indian Company. Unethical Business Practices The modern business world is characterized for being aggressive and competitive.
ITC ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and.Download