Corporate Governance Practices At Reliance Media Industries Limited

Question: Discuss about the Corporate Governance Practices At Reliance Media Industries. Answer: Recommendations that are based on corporate governance practices at Reliance Media Industries Limited Company Corporate governance refers to a system that comprises of practices, processes, and rules through which a company or an organization is both controlled and directed. Essentially, Corporate Governance normally comprises of an act that ensures the interests of the company as well of its numerous stakeholders such as customers, management, shareholders, the community, government, financiers, and suppliers are well balanced. Based on the corporate governance report of Reliance media industries, it is quite apparent that there are various practices that are embraced by the company in order to ensure that it maintains a positive and valuable working relationship with its numerous stakeholders (Madhani, 2014). For instance, reliance media makes use of various corporate governance practices that include among others use of Corporate Social Responsibility (CSR) through offering donations, giving environmental funds, and ensuring that it treats employees in a better way to empower them give ba ck to their respective communities or societies. That apart, Reliance Media Industries in its endeavor to embrace corporate governance also makes use of various committees, reports, and other transparent documents in order to ensure that the highest levels of corporate governance are upheld by the company (Larcker Tayan, 2015). The use of Corporate Social Responsibility (CSR) by Reliance Media to promote Corporate Governance Practices in the Company Reliance Media Company embraces Corporate Governance by ensuring that it has put in place a committee with clear terms of reference. Among other responsibilities and terms required by the committee, they include: Formulation and recommendation towards the board an effective CSR responsibility that depicts the various activities which should be undertaken by the organization in compliance with the provisions which have been stipulated in the Companies Act 2012 and the rules that are made there under. Recommend the amount of expenditure that should be incurred or spend in the CSR activities. Monitor implementation of CSR policy of Reliance Media limited from time to time. Approval of Corporate Sustainability reports and also oversees the effective implementation of numerous sustainability activities such as conservation of the environment (Shah Ramamoorthy, 2014). How Reliance Media Limited uses Corporate Social Responsibility in embracing Governance Practices The Use of Corporate Social Responsibility (CSR) It is prudent to note that Reliance Media limited usually ensures that Corporate Social Responsibility or CSR is actually at the core of its CSR philosophy and it has continued to ensure that this becomes a top priority. For instance the companys CSR teams at the manufacturing department positively and regularly interact with the neighboring community in various areas or divisions such as in health, development of infrastructure, and in education (Lattemann, 2014). The company( Reliance Media Limited) through its manufacturing department thus ensures that the communities around them are not only provided with safe drinking water but enjoy benefits that emanate from enhanced village infrastructure as well as construction of schools in the neighborhood. That apart, Reliance media also engages in positive CSR through donation of relief as well as general assistance in circumstances where there is occurrence of any natural disasters within such communities. In collaboration with numerous Non-Governmental Organizations (NGOs) and other relevant partners, Reliance Media Limited also gets involved in various health initiatives and community development activities (Singh Verma, 2014). The company, Reliance Media Limited, is highly interested in ensuring that there is conservation of the environment and therefore it has ensured that funds are allocated towards this worthy cause. For instance, Reliance Media has ensured that funds are set aside to be used in various environmental activities such as tree plantation, effluent treatment, and even in treatment of hazardous wastes. Better Employees One of the significant endeavors that have been made by Reliance Media in order to embrace Corporate Governance is that it has ensured that its employees are well treated. This has been made possible through the establishment of the Employee Stock Option Scheme. This is actually one of the broadest programs that has so far been quite successful in the company and is known to cover a large number of employees (Yadav Jain, 2016). This has indeed played a significant role in enhancing corporate governance at Reliance Media Limited. This program is quite important for employees at Reliance Media because it effectively facilitates not only the delegation o authority in the company but it also ensures that both integrity and governance are well maintained. Moreover, this program is quite prudent for the company because it has ensured that there is total alignment and integration of individual interests with the companys growth imperatives. The use of Committees in embracing Corporate Governance at Reliance Media Limited Reliance Media Company has a constant endeavor of ensuring that there is adoption of the best governance practices as stipulated in the International Codes of Corporate Governance and as it is effectively practices by renowned global companies in the world. Apart from the fact that the company uses Corporate Social responsibilities and transparent reports in order to enhance corporate governance in its realms, it is important to note that the company also makes use of a committee to ensure its goals and objectives are well achieved (Taylor, 2015). For instance, Reliance Media limited actually has an independent Board Committee that not only deals with matters or issues to do with Corporate Governance and Stakeholders Interface but also deals with the nomination of its Board members. The Use of Reports and Transparencies by Reliance Media in Corporate Governance Practices Using of appropriate reports and transparent records is one of the major ways that Reliance Media Company uses in order to enhance Corporate Governance practices. For instance, Reliance Media not only has a designated Lead Independent Director that has a defined role, but it also ensures that there is a constant review of all the appropriate securities related filings with the Stock Exchanges (Yadava Sinha, 2016). In addition to that, all the securities are also reviewed after every quarter by investors as well as the Shareholders Grievance Committee that comprises of the companys Directors. In addition to that, Reliance Media Limited has also developed procedures and policies to enhance disclosures thus embracing corporate governance practices. References Larcker, D., Tayan, B. (2015). Corporate governance matters: A closer look at organizational choices and their consequences. 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Scoring Sustainability Reports Using GRI 2011 Guidelines for Assessing Environmental, Economic, and Social Dimensions of Leading Public and Private Indian Companies. Journal of Business Ethics, 138(3), 549-558.