A Study of Corporate Web Reporting Practices in India

-- Pooja Malhotra and Ritika Makkar

This study was conducted to know the extent of web reporting practices in the Indian corporate sector and inter-sector comparison of web reporting practices. A sample of 50 companies from different sectors was covered for this purpose. The analysis of results of the study shows that about 80% of the sample companies provided mandatory and voluntary information. The banking sector provided financial information to a greater extent compared to the other sectors. Balance sheet and profit and loss account have been provided in a majority of the cases, and only a few companies provided the director’s report and auditor’s report. Most of the companies provided information about the company profile, company history, company products and services, etc. and did not give any relevant information from the user’s point of view. Results show that the Indian companies have started using the Internet as a medium for reporting. Though the percentage of companies giving information for investor’s use is not very high, there are chances of an increasing trend in the Indian corporate sector. The percentage of Indian companies reporting via Internet is low compared to other advanced countries, but will gain importance in the future. The paper suggests that greater stress should be given to providing up-to-date financial information and to including full annual report while presenting information on websites. Awareness should be created among various users regarding corporate web reporting, and users’ perception should be kept in mind while providing web disclosures.

© 2011 IUP. All Rights Reserved.

A Comparative Study of Corporate Governance Issues: The Case of Germany and Romania

-- Ovidiu-NicualeBordean and Zenovia Cristiana Pop

Romania, along with other members of the transition economies of Central and Eastern Europe (CEE), has adopted a so-called ‘hybrid corporate governance model’, which draws inspiration from both the insider-oriented system as exemplified in Germany, and the outsider-oriented system as exemplified in the UK. The paper aims to assess the corporate governance framework in Romania through national level comparison with the German corporate governance framework. At the same time, the research approach relies on cross-case analysis, drawing data primarily from the annual reports of two companies from the pharmaceutical industry from Germany and Romania. The study focuses on particular corporate governance issues like corporate compliance, corporate transparency, role and duties of Board of Directors, and compensation. The findings of the research allow us to conclude that companies from transition economies of CEE, like Romania, require the practice of sound corporate governance to ensure more efficient disclosure practices.

© 2011 IUP. All Rights Reserved.

Integrating Corporate Social Responsibility Initiatives with Business Strategy: A Study of Some Indian Companies

-- Munmun Dey and Shouvik Sircar

The turn of the century has witnessed a paradigm shift in business objectives. The economic objective of profit earning, though essential, is insufficient to satisfy the ever-growing and divergent needs of a myriad of stakeholders that modern corporations have to contend with. The corporation, being a legal entity, is viewed as any other citizen in the society, having its rights and duties. Hence, the concepts of corporate citizenship and Corporate Social Responsibility (CSR) have come into vogue. CSR initiatives, to really bear fruit, must result in a mutuality of benefits for the society/stakeholders as well as for the corporation itself. CSR initiatives should be so integrated and internalized by the corporations that they are placed at the very heart of the business and not merely as an appendage to it. Corporations that have understood this mantra of corporate success have internalized the benefits flowing from responsible corporate citizenship and can hope to reap rich dividends in terms of improved corporate reputation, gaining consumers’ trust, employee motivation and retention and favorable market positioning, just to name a few. This paper seeks to study how some Indian companies at the forefront of corporate citizenship have integrated their CSR initiatives with their business strategy, rather than undertaking some unfocused CSR measures simply as a knee-jerk reaction to external societal pressures. Such a study may throw some light on the question as to why an organization contributes to social cause and what it expects to gain in the process.

© 2011 IUP. All Rights Reserved.

Case Study: Success Through Social Responsibility: A Unique Business Model of Jaipur Rugs Foundation

-- Vivek Ahuja

This case study presents a highly successful company which has climbed the ladder of success, not so much in the financial criteria, but in the way it has contributed to the society. The Jaipur-based rugs company, Jaipur Rugs Company Private Limited and its social arm, Jaipur Rugs Foundation, work on a unique business model that talks about CSR as a major dimension embedded within their framework. The model is so successful that even the great business strategy professor and Guru Dr. Prahalad has specially mentioned this company in his best-selling book, Fortune at the Bottom of Pyramid. Indeed, fortune lies at the bottom of the pyramid for the Jaipur Rugs Company, which has enabled and is in continuous process of enabling poor artisans and weavers to become entrepreneurs.

© 2011 IUP. All Rights Reserved.