Page 179 - DMGT401Business Environment

Business Environment

Notes
'substance' will ultimately determine the credibility and integrity of the process. Substance is
inexorably linked to the mindset and ethical standards of management."
From the government's side there have been swift moves through law and regulations
made by the Department of Company Affairs (DOC) and SEBI to hasten the process of
effecting improvements in a corporation's functioning. A number of provisions regarding
corporate governance have been inserted in the Companies Act through Companies
(Amendment) Act 2000. Important changes to improve Corporate Governance are:
1. Providing for director's responsibility statement [Section 217 (2AA)]
2. Board to report in cases where buyback was not completed within the time specified
in sub-section (4) of Section 77.
3. Small shareholders to get a representation through a director (Section 252).
4. Limitations in directorships in companies (Sections 274 & 275).

5. Constitutions of audit committees.
6. Providing for higher penalties (tenfold increase) for offences provided in various
sections of the Companies Act.

Questions
1. Critically analyse the Recommendations of the Narayan Murthy Committee.
2. How can one lead to good governance system in organisations?

7.8 Summary

Society and culture primarily govern the lifestyle of an individual.
Poverty is one of the main issues, attracting the attention of sociologists and economists.
It indicates a condition in which a person fails to maintain a living standard adequate for
a comfortable lifestyle.
Out of India's total population of more than 1 billion, 350 to 400 million people are living
below the poverty line. Nearly 75% of the poor people are in rural areas, most of them are
daily wagers, landless laborers and self employed house holders.
The phenomenal increase in the city populations is the main reason for poverty in the
urban areas of India. A major portion of this additional population is due to the migration
of the rural families from villages to cities.

India as a nation is facing a massive problem of unemployment. Unemployment can be
defined as a state of no work for a man fit and willing to work. It is a condition of
involuntary and not voluntary idleness.

The problem of unemployment has becoming a colossal. Various problems have caused
this problem. There are individual factors like age, vocational unfitness and physical
disabilities which restrict the people.
The remedial measures for reducing unemployment may lay greater emphasis on creation
of opportunities for self -employment, augmentation of productivity and income levels.
Human development is a multifaceted and complex process. There are many dimensions
along which development occurs and there are complex interdependencies and linkages
between these dimensions.

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