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 |