Governance Philosophy
Exide views Corporate Governance as a systemic process by which Companies are directed and controlled to maximize their capacity to generate wealth. As large corporates use a vast quantum of societal resources, Exide believes that the governance process should ensure that these Companies are managed in a manner that meets both stakeholders’ aspirations and societal expectations.
Exide's Corporate Governance initiative is based on two core principles:
- Management must have the executive freedom to drive the organisation forward without undue restraints.
- This freedom of management, however, should be exercised within a framework of effective accountability and transparency.
Exide believes that any meaningful policy on Corporate Governance must empower the executive management of the Company, and simultaneously create a mechanism of checks and balances which ensure that the decision making powers vested in the executive management are used with care and responsibility and, not misused.
Exide's governance philosophy embraces the tenets of trusteeship, transparency, empowerment and accountability, control and ethical corporate citizenship. Exide believes that the practice of each of these tenets would lead to the creation of the right corporate culture in which the Company is managed in a manner that fulfils the purpose of Corporate Governance.
Trusteeship recognises that large corporations have both an economic and a social purpose, thereby casting the responsibility on the Board of Directors to protect and enhance
shareholder value, as well as fulfill obligations to other stakeholders.
Transparency requires that the Company makes appropriate disclosures where necessary and explains the basis of its policies and actions to all those who are affected by them. Empowerment is a process used to unleash creativity and innovation throughout the organisation by decentralising and delegating the decision making powers at the most appropriate levels.
Control ensures that freedom of management is exercised within a framework of checks and balances and is designed to prevent misuse of power, facilitate timely response to change and, ensure effective management of risks.
Exide's Corporate Governance processes continuously reinforce and help to practically realise the Company's belief in ethical corporate citizenship and, is manifested
through exemplary standards of ethical behaviour, both within the organisation as well as in external relationships.