National Seminar on Standards for Quality & Empowerment Good Governance

1. National Seminar on Standards for Quality & EmpowermentGood Governance Dinesh Agrawal GM (CSR), NTPC 22 June 2011, New Delhi

2. Organisational Governance • Organizational governance is the set of processes, customs, policies, laws and institutions affecting the way in which a organization is directed, administered or controlled. by Dinesh Agrawal at DRDO, New Delhi

3. Good Governance • It includes the relationships among the constituents and the goals for which the organization is governed. • It is operationalised by the persons having the authority and responsibility for pursuing the organization’s objectives, i.e. the purpose for which organization exists. • It is maximizing value for all stakeholders, transparency in functioning, and respect and mutual trust amongst all constituents of organization and stakeholders. by Dinesh Agrawal at DRDO, New Delhi

4. Constituents • Owners, members or constituents of the organization like share holder in case of companies and members of general body in case of societies, cooperatives etc. • Board of directors • Management • Employees, • Suppliers, contractors • customers, • funding agencies, • regulators, • the environment , • community by Dinesh Agrawal at DRDO, New Delhi

5. Principles of Good Governance • Integrity • Accountability • Transparency • Ethical conduct and values by Dinesh Agrawal at DRDO, New Delhi

6. Principles of Good Governance • Integrity - Integrity comprises perceived consistency of actions, values, methods, measures and principles. • Integrity is often seen as the quality of having a sense of honesty and truthfulness with regard to the intentions or motives for one's actions. by Dinesh Agrawal at DRDO, New Delhi

7. Principles of Good Governance • Accountability – is thestate of being answerable for decisions and activities to the organization's governing bodies, legal authorities and, more broadly, its stakeholders. • Accountability should focus both, on compliance, with rules and ethical principles, and on achievement of results. by Dinesh Agrawal at DRDO, New Delhi

8. Principles of Good Governance • Transparency - Transparency is a principle of access to, or disclosure of, appropriate information. • It refers to the provision of making available relevant information to the various stakeholders, both internal and external to the organization, who may be affected by, or have an interest in, its decisions and actions. by Dinesh Agrawal at DRDO, New Delhi

9. Principles of Good Governance Ethical conduct and values - The organization’s stakeholders expect the organization to conduct its activities in an ethical manner. by Dinesh Agrawal at DRDO, New Delhi

10. Ethical conduct and values Ethical conduct and values - Not only delineate the minimal standards below which a persons actions will not be tolerated, but articulate a set of values that a person should aspire to emulate. What makes actions right and wrong? Is it a Virtue or Duty or Rights? Q: A man in a sinking boat with mother, wife and little daughter can save only one person. Who will she be? by Dinesh Agrawal at DRDO, New Delhi

11. Legal Compliance • The applicable laws, statutes, regulations • The personnel responsible for compliance. • Audits that compliance is evaluated and reported to top management and the board. • Due awareness of the legal responsibilities and liabilities to partners/business associates, suppliers/distributors in the supply chain, etc. where ever applicable. by Dinesh Agrawal at DRDO, New Delhi

12. Stakeholder Identification & Engagement • Identification of stakeholder (both internal and external). • Identification of needs and concerns of the stakeholders • Stakeholder Engagement Process • Setup appropriate channels/ forums/ structures for their engagement by Dinesh Agrawal at DRDO, New Delhi

13. Stakeholder and their concern by Dinesh Agrawal at DRDO, New Delhi

14. Stakeholder and their concern by Dinesh Agrawal at DRDO, New Delhi

15. Responsiveness to stakeholder • The information given is: • Relevant • Complete • Reliable • Neutral. • Understandable • Accessible • Equitable • Timely Response by Dinesh Agrawal at DRDO, New Delhi

16. Policy, Planning & Strategy • Organization to define it’s vision, mission and value statement. “One day Alice came to a fork in the road and saw a Cheshire cat in a tree. Which road do I take? she asked. Where do you want to go? was his response. I don't know, Alice answered. Then, said the cat, it doesn't matter.” by Dinesh Agrawal at DRDO, New Delhi

17. Governance structure • Define its vision, mission and value statements. • The governance structure is defined by a hierarchy of levels which includes: • a) Owners/Promoters • b) Board, and • c) Management (Strategic/Operational) • With clarity of roles, responsibility, authority, accountability and liability at each functional level. • Effective flow of communication and decisions fully understood by each functionaries by Dinesh Agrawal at DRDO, New Delhi

18. Documentation • Documentation • Vision, mission and values statement • Code of Conduct for Board, employees, etc. • Roles, Responsibilities, authorities, accountability and liability of the Board members, management etc. • Terms of reference of Board and other committees • Specific policies (e.g. HR, gender, environment, etc) • Grievance redressal mechanisms for all stakeholders by Dinesh Agrawal at DRDO, New Delhi

19. Monitoring and Review • Monitoring and review • Through Internal & external audits and audit committees • Committee for reviewing the good governance practices of the organization to review • Policy deployment • Feedback system • System of identification and reporting of all breaches • System of checking legal and financial compliances. • System of checking non-compliance in ethical conduct, etc. by Dinesh Agrawal at DRDO, New Delhi

20. Reporting & Communication Reporting • Establishment of proper reporting mechanisms. • System for timely statutory and regulatory reporting. Communication • Channels of communication with the respective functionaries for communicating with the respective stakeholders. by Dinesh Agrawal at DRDO, New Delhi

21. Maturity model • The issue of governance is progressive and evolving. • It is a journey towards making right decisions considering the interest of all stakeholders. • It goes much beyond legal compliance. • It even goes ahead of expectations of stakeholders. Road map based on the concept of capability maturity model considering 5 levels of maturity guides the journey to good governance. by Dinesh Agrawal at DRDO, New Delhi

22. Maturity model • Initial Level: • To some how comply to bare minimum legal requirements. Adhoc approach with focus on managing the crises. • Basic Level • Some structure with management controls including planning, monitoring and control system for ensuring compliance to all legal requirements. • Defined Level • Well defined and written roles and responsibilities for all decision makers. by Dinesh Agrawal at DRDO, New Delhi

23. Maturity model • Managed Level • defined vision, mission and goals and have policies for each stakeholder • Optimized level • Strive to take care of interest of all stakeholder way beyond the statutory or legal requirement. • Look towards its long term sustainability. by Dinesh Agrawal at DRDO, New Delhi

24. Good Governance – Risk Mgmt by Dinesh Agrawal at DRDO, New Delhi

25. Good Governance – Achieving Goals by Dinesh Agrawal at DRDO, New Delhi

26. Our Role • With great power comes great responsibility • Not everyone is meant to make a difference. But for me, the choice to lead an ordinary life is no longer an option. by Dinesh Agrawal at DRDO, New Delhi

27. Our Role • I'm trying to free your mind, Neo. But I can only show you the door. You're the one that has to walk through it. by Dinesh Agrawal at DRDO, New Delhi

28. Thank You