Comparison of the performance of the Corporates by adapting the

principles of Corporate Governance post Industry 4.0 and

evaluating their performance henceforth
Prof.Rajlaxmi Das, Senior Faculty,
Dept. of MJMC, BJB (A) College, BBSR.
Email: rajlaxmidas@gmail.com

PROFILE OF RAJLAXMI DAS

She has worked as a PRO-cum-Coordinator with Buxi Jagabandhu English Medium School,
Bhubaneswar.
She has worked as a member of the Faculty of Department of Journalism and Mass
Communication of Ravenshaw University, Cuttack.
She has worked as Spoken English and Soft Skills Trainer at various institutes in Bhubaneswar.
She has a literary flair and has written several articles of social relevance.
Presently working as a Senior Faculty in the Department of Journalism and Mass
Communication of B.J.B. (A) College, Bhubaneswar.

ABSTRACT

To sustain appropriate relations with their public and target audiences, and to build a positive
stature, every organization employs Public Relations. To control and balance the interests of the
stakeholders, an organization incorporates a few methods, and rules on which their sustainability
depends. On the other hand, Good Governance is the system and rules to provide the agenda of
the company’s objectives, accountability, and decisions. In order to control and balance the
interests of the stakeholders, a company incorporates a few practices known as Corporate
Governance.

Corporate Governance furnishes the outline for accomplishing a company's object and therefore
covers almost every field of management, from action plans and internal controls to
measurement of performance, and corporate disclosure. A smooth and unhindered Corporate
Governance is the consequence of good governance.

Some define Good Governance to bring positive development, in terms of economical

development, others, for other amenities. According to the World Bank, Good Governance is
“the manner in which power is exercised in the management of a country’s economic and social
resources for development”. To add, the qualities of performance assessment, dedication, truthful
communication, and mutual respect play a massive part in executing efficient corporate
governance. Corporate Governance is a long term corporate way of life, not a onetime activity.
Corporate Governance chalks out in details the menace and agrees along with incorporated
reporting system. It tackles issues relating to methods, equipments and public, within an
organization.
Around a decade ago, organizations concentrated only on the execution of rules and regulations
enacted by the legislature and reaping benefits. In recent times, many organizations have come to
realize the necessity of Good Governance and holistic development of the society.

The purpose of this study is to compare the performance of the Corporates by adapting the
principles of Corporate Governance post Industry 4.0 and evaluating their performance
henceforth. The various tools for Good Governance, in the advanced digital technology that is
already being used in manufacturing, are transforming production in Industry 4.0. Industry 4.0 is
seen to lead to superior competencies and bring about a change in traditional production
relationships among suppliers, producers, and target audiences, as well as between human beings
and machineries. Also, it joins modern digital technologies with mass manufacturing
technologies through the execution of techniques like automation and data analytics, among
others. Therefore, it requires extra efforts of the companies to maintain favorable relations with
their publics.

KEY WORDS: Corporate Governance, Good Governance, Holistic Development, Superior

Competencies, Truthful Communication
 Good Governance

In modern times, good governance involves enlightened citizenship as well as accountable and
constitutional governance. Good governance is also a key development concept today. The
debate relates only to the question of how to achieve development. It is a comprehensive and
positive concept in nature. They are as inclusive as they are aimed at involving people in the
development process. Thus, development is not only people-oriented, but people-centred. It is
positive to build new levels of skills, knowledge and support development. Let us now discuss
some of the characteristics or characteristics of good governance.

It has been noted that good governance has some key features or elements based on a number of
studies and reports. According to Kautilya, for example, the following features formed part of
good governance:
 Law and order
 People considerate government
 Righteousness and judiciousness as the base of verdict
 Corruption free authority

The reports of the World Bank of 1989 and 1992, the Organization for Economic Cooperation
Organization Commission on Global Governance (1995), United Nations Development Program
(UNDP) 1997, have all tackled all the aspects of good governance widely.

These concerns of good governance have been expressed very clearly in Asian development
Basic report in the form of the following questions:
1. Do people fully take part in the ways of governance?
2. Are people fully educated?
3. Do people make judgments or are they allowed to hold the decision-makers answerable?
4. Are women allowed to take part in the governance equally?
5. Have the needs of the poor and disadvantaged been met?
6. Are the human rights of the people guaranteed?
7. Are the needs & requirements of the future generation considered in the current strategies?
8. Do people have their own governance structures?

Each of us expects and looks forward to a good and effective government. According to
Kautilya, it was considered a duty of the government to act in a manner that would achieve the
material, cultural, moral, and mental well-being of the people. In this context, the study of good
governance is very important in the study of political science.

What is corporate governance and its principles?

To maintain appropriate relationships with the target audience and to build a positive niche, each
institution employs public relations. On the other hand, good governance is the system and rules
to provide the agenda of the company's goals, accountability and decisions. In order to control
and balance the interests of stakeholders, the company incorporates some practices known as
corporate governance.
Some define good governance for positive development, in terms of economic development,
others, for other amenities. According to the World Bank, good governance is "the way power is
exercised in managing a country's economic and social resources for development." In addition,
the characteristics of performance appraisal, dedication, honest communication and mutual
respect play an important role in implementing effective corporate governance. Corporate
governance is a long-term way of life for a company, not a one-time activity.

The definition of corporate governance most extensively used is "the system by which
companies are directed and controlled" (Cadbury Committee, 1992). More particularly, it is the
framework, by which the interests of the various stakeholders are balanced, or, as asserted by the
IFC, "the relationships among the management, Board of Directors, controlling shareholders,
minority shareholders and other stakeholders".

Corporate governance has also been stated as "a system of law and sound approaches by which
corporations are directed and controlled focusing on the internal and external corporate structures
with the intention of monitoring the actions of management and directors and thereby, mitigating
agency risks which may stem from the misdeeds of corporate officers.” by Sifuna, Anazett Pacy
(2012), in the piece "Disclose or Abstain: The Prohibition of Insider Trading on Trial”, published
in the Journal of International Banking Law and Regulation.

Corporate governance are pillars away from management because unlike management,
governance must be outside the governing body. Ruling agents are not part of the entity they
govern, nor do they exercise their personal authority over them.

What are the key components of corporate governance?

Corporate governance requires companies to develop comprehensive programs, closely observe
and allay any number of impending risk factors. Every company must ultimately address
corporate governance and, unfortunately, there’s no easy way to do it. Corporate governance is
an intricate and stressful topic.

It can overawe growing organizations that are commencing to identify the importance of tackling
this problem, which eventually becomes a full-time job. The UK Corporate Governance Code,
that guides many companies, stipulates that the company's board of directors determines the
company's values, which is quite different from running a business on a day-to-day basis.

Below are examples of eight elements of good corporate governance:

 Direction
Providing overall guidance to the company, its employees and leaders is a key part. Making
tactical choices and discussing existing and potential apprehensions of the company are tactics
for this element. The company's mission and vision statements arise from the role of business
governance. These sentences provide a sense of purpose and explain the underlying intentions of
the company's business behaviors.
 Independence of directors
If company managers are also owners and / or the members of their family, friends-appointed
entrepreneurs, or individuals involved in the day-to-day management of the organization, the
board is unlikely to be unbiased. The presence of the majority of independent non-executive
directors will help evade bias and clashes of interest between the Board and management.
Independent decision is almost always in the company's best interest.
 Effective Risk Management
Even though your company employs smart policies, your competitors may take away your
customers, unforeseen disasters can hamper your functions, and fluctuations in the economy can
corrode the business potential in your intended marketplace. Risks can’t be avoided, so it is
necessary to execute efficient tactical risk management.
 Organization
A strong organization within the company is essential to the implementation of corporate
governance objectives.
 Stakeholder Relations
Corporate governance involves holding the company accountable to each stakeholder group. In
the early 21st century, there was a greater focus on balancing the interests of investors with those
of other stakeholders, such as clients, workforce and business associates. Governance web pages
often refer to specific things companies do to meet their respective expectations.
 Transparency
Transparency in business helps the workforce to be better equipped to understand their roles in
the company. To make the public trust the corporations, transparency plays an important role.
 Corporate Citizenship
The early 21st increased focus on corporate citizenship. Companies typically include a corporate
citizenship statement on the corporate governance or investor relations web pages, conveying the
intention to work with social and environmental responsibility.
 Self-Evaluation
The organizations are expected to conduct regular self-assessments to identify and alleviate
problems. Surveys & external consultants can provide vital feedback about the effectiveness of
current policies & employ ways to increase productivity.

What are the issues of corporate governance?

The issues associated with corporate governance have different priorities in each of the corporate
bodies. They are:
 Value-based corporate culture: For an organization to function effectively, it must have
certain ethical values like a set of beliefs, ethics and principles that do not violate.
 A holistic view: This holistic view is an attitude which helps to manage the institution. It
needs special efforts and once adopted lead to the development of the qualities of
nobility, tolerance and empathy.
 Compliance with laws: Those companies that really need to progress, have high ethical
values and need to run a long-term business that adhere to them and conform to the laws
of the Securities Board of India (SEBI), the Foreign Exchange Regulation Act, the
Competition Act 2002, the Internet Laws, Banking Laws and others.
 Disclosure, transparency and accountability: Disclosure, transparency and
accountability are an important feature of good governance. Accurate and timely
information should be divulged on such matters as financial situation, actions, etc.
Transparency is required in order for the government to trust corporate bodies and thus
has reduced corporate tax rates from 30% today versus 97% during the late 1970s. There
is a need for transparency towards institutional bodies, because of the huge competition
in the markets, customers have options that do not turn to other corporate bodies.
  Corporate Governance and Human Resources Management: For any corporate body,
the employees are like family. To become an ideal company, the role of human resources
management becomes very vital, both of which are directly related. Everyone must be
treated with individual respect, and their achievements must be recognized. Individuals
and employees must be given the best opportunity to demonstrate their value and can be
done by the Human Resources Department. Thus, in corporate governance, HR has a
very important role to play.
 Innovation: Each corporate body must risk innovation, ie innovation in products and
services, and play a pivotal role in corporate governance.
 Need for judicial reform: There is a need for judicial reform of a good economy and
also in the era of globalization and changing liberalization today. Although our judicial
system has played a useful role throughout these years, it has certainly become obsolete
and obsolete over the years. The delay in the judiciary is due to the many interests
involved in it. But after a change in scenario and rapidly increasing competition, the
judiciary needs to make reforms accordingly. It needs to resolve disputes quickly in a
cost-effective manner.
 Globalization helping Indian companies become a global giant based on good
governance: In the current era of competition and because of globalization, many of our
Indian corporate bodies have become global giants that can only be achieved because of
good corporate governance.
 Lessons Learned from Corporate Failure: Every story has an ethic to learn from.
Every failure has success in learning from it. In the same way, the corporate body has
certain policies that if it goes wrong it needs to be learned. Failure can be both internal
and external. In good governance, corporate bodies need to learn from their failures and
need to move on to success.

Role of Computer & Information Technology (IT) as means of good

governance
From various discussions, it has been noticed that the essence of good governance is to be a
friend and power-sharing system on the one hand, and to be a responsive, accessible, ethical,
transparent and corruption-free system on the other. The use of computers and information
technology is conceived as a highly effective tool for good governance. It seeks to improve.

 Delivery of services to the people at low cost.

 Empowerment of people through dissemination of information.
 Openness and transparency in the working of government.
 Innovations and introduction of new ideas and concepts in the performance by the
government and the people.
 Effective linkages between citizens and the administration.
 Comprehensive monitoring and assessment of the performance of the government.

Thus, computers can increase people's access to information about rules, regulations or
procedures, to the government's welfare and development plan, to the government's welfare and
development plan, or information about weather and climate that farmers and citizens can use.
Corruption is said to be the result of a face-to-face meeting between the donor and the recipient.
Computers can reduce their personal connections to reduce corruption. For example, the farmer
can get a copy of his land record on the computer, and the citizen can pay any invoice or tax
without actually going to the cash counter and suffering from a long waiting list or loss of profits
today. The Gyandoot program, which is implemented in Dahar District in Madhya Pradesh,
India, offers a number of services such as online registration, copies of land records, and the
Agricultural Product Auction Center for people at a nominal price. The list may also include
facilities such as eligibility rules and applying for loans; prices of seeds, fertilizers, tools, power
outage schedule, availability of diesel etc. Such a system would reduce administrative delays,
another source of corruption. This will reduce the time and financial cost of the facility as
citizens will receive it via the computer at their doorstep. The Karnataka state government uses
computers for transparency in educational acceptance and employment, transfer and payment of
teachers' salaries. Computers are also used to know the execution of instructions or prime orders.
It is also used for electoral district management and the preparation of summary data on key
projects in health, housing and other social welfare programs.

In Kerala, a computerized project known as Friends (fast, reliable, immediate, effective) A

service exchange network) provides a range of public services via computers to people. The
central government of India has also introduced a computerized management system in various
departments and ministries such as railways, human resource development, rural development,
planning committee and UGC.

Spotlight on Governance in the 4th Industrial Revolution

The Fourth Industrial Revolution is disabling almost everything about the way we live, work and
work, including the way we make the rules and laws we used to govern industry and society.
Traditionally, public policy and decision-making systems have evolved in a linear top-down
fashion, with decision-makers having sufficient time to study a specific issue in detail and to
develop and implement an appropriate regulatory framework. But this approach remains elusive
today, given the remarkable rapid pace of change and the overall scope of the impact of the
Fourth Industrial Revolution.

As a result, regulators and regulators today are scrambling to find new ways to build legislation
that preserves and protects the interests of consumers and the general public while ensuring
continued innovation and technological development. As Gillian K. Hadfield argued. Hadfield, a
professor of law and economics at the University of Southern California, is important to come to
this question correctly: if we cannot properly judge the Fourth Industrial Revolution, we will not
be able to realize its full economic and social potential.

Why is Governance important in Industry 4.0?

It is a widespread but dangerous assumption that economic progress will occur regardless of the
shape of the governance environment. As in common thinking, the Fourth Industrial Revolution
occurs anyway. Knowing how to control them will only ensure that they happen more
effectively.

But Hadfield argues that seeing governance as a luxury rather than a necessity is the wrong
perspective. Instead, we should think of governance as a form of infrastructure - an invisible and
interconnected platform of rules and practices that allows us to make cooperation and planning
part of our economic activity and social interactions, and without it, just like any other type of
infrastructure and economic progress does not happen.

Who will be the key players in implementing Governance policies for Industry
4.0?
When looking at the rules of Industry 4.0, people focused a lot on what the rules should say and
how they would agree, but they paid much less attention to the question of who would agree.
However, determining who the key players are is a crucial step if the rules should not only be
designed, but delivered in this new and complex space. This is not an easy question, though:
governments tend to lack the necessary expertise, but relying on the innovators themselves, who
have the appropriate expertise, can lead to difficulties in the effectiveness of self-regulation.

How to solve this Government/ Innovator Governance conundrum?

Tensions between governments and innovators, when it comes to regulation, have led to a trend
over the last two decades of the trend known as the "new theory of government." Under this
model, rather than writing the rules themselves, governments determine what the rules should
define. Investigate, then delegate responsibility for writing those rules to the entities that will be
affected.

A good example of this model is the recent decision "The right to forget." After judging that
individuals should have the right to remove references to themselves from online search results,
the European courts commissioned Google - which was in a much better position to learn how to
do it than any government - with knowing how to achieve that goal.

Hadfield also predicts that this kind of legislative cooperation between governments and private
sector entities could become more effective by introducing third-party competition and
innovation in the process. Currently, for example, many jurisdictions are discussing how to deal
with the emergence of self-driving cars, which are designed to bring a wide range of problems
that have not been considered to our roads and our courtrooms.

What if, instead of writing rules by governments or self-driving car companies, they were created
by a number of private bodies that then took responsibility for persuading governments to
approve them and self-driving car companies for approval? Incentives like this can be a big step
in ensuring that the goals are achieved in a cost-effective and cost-effective manner and that
results remain accountable to the public interest.

The projected Governance in Industry 4.0 in 2030

Hadfield emphasizes that one of the major challenges to governance in the Fourth Industrial
Revolution is to push for globally harmonized rules - which is quite logical in an era when global
companies are not interested in dealing with dozens, if not hundreds, of different groups of
regulations. Hadfield imagines that by 2030, we will have addressed this challenge by harnessing
market incentives to create regulatory providers competing globally, thereby building a global
network of regulators for governments and businesses alike to choose from.
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