Corporate Governance Norms

High

Ø Corporate norms are followed because of strict regulation by regulating body

Ø Initial trust can be developed but eventually investors start getting hints on unethical behaviour and start pulling money out

Ø Short terms sustainable but not sustainable in long term

Ø The basic building block, i.e. ethics is missing based on which high standard of Corporate Reforms can be undertaken

Ø Lots of money is spent on CSR but all spending is superficial and eyewash

Ø Ideal organization which attracts lots of confidence by investors

Ø Efficient decision body

Ø High market returns to investors

Ø Long terms sustainable

Ø Inherent conscious and law abiding organization

Ø High growth

Ø Satisfied employees and customers

Ø Competitive advantage over other grass and rood organizations

High

Ø Unsustainable in short term

Ø Negligible or nil investment by investors

Ø Attracts continuous regulatory problems

Ø Inherently conscious but in absence of strict compliance to norms, trust will be lost by organization

Ø Unsustainable in long term

Low

High

Ethical Behaviour/compliance by Leadership in an Organization