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Table 2 Corporate Governance Performance Index

From: Implications of corporate governance on financial performance: an analytical review of governance and social reporting reforms in India

Code Stakeholder Dimensions Mandatory/ Voluntary Norm Basis of Scoring
SHR1 Shareholders Number of Meetings of Board of Directors in a year Minimum 4 meeting in a year 3 for > 6 meetings
2 for 4–6 meetings
1 for < 4 meetings
SHR2 Number of Independent Directors on the Board 50% of Directors 3 for > 2/3 of Directors
2 for 2/3 -½ of Directors
1 for < ½ of Directors
SHR3 Number of Committees of Board of Directors Minimum 3 3 for > 5 Committees
2 for 3–5 Committees
1 for < 3 Committees
SHR4 Number of Committees headed by Independent Directors Minimum 2 3 for > 5 Committees
2 for 3–5 Committees
1 for < 3 Committees
SHR5 Separate Meeting of Independent Directors Minimum 1 meeting 2 for > 1 Meetings
1 for 1 Meeting
0 for No Meeting
EMR1 Employees Code of Ethics (COE) for Senior management Available on website Code of Conduct for Directors and Senior management 3 for all Employees
2 for all levels of Management
1 for only Directors and Senior Management
EMR2 Number of Women Directors on the Board Minimum 1 Women Director 2 for > 1 Women Director
1 for 1 Women Director
0 for No Women Director
EMR3 Whistle Blower Policy Defined and Stated Mandatory 1 for Well defined Policy
0 for Not Available
EMR4 Percentage of Employee Grievances Redressed during a Year 100% 3 for> 90% Redressal
2 for 70–90 Redressal
1 for < 70% Redressal
SCR1 Suppliers and Customers Percentage of Consumer Grievances Redressed during a Year 100% 3 for> 90% Redressal
2 for 70–90 Redressal
1 for < 70% Redressal
SCR2 Publishing Sustainability/ Business Responsibility Report BRR 3 for Sustainability Report
2 for BRR
1 for Annual Report
CMR1 Community Annual Spending on CSR as percentage of Net Profit 2% of Net Profit 3 for > 2% Spending
2 for 1–2% Spending
1 for < 1% Spending
CMR2 Number of Social Initiatives Undertaken by the Company Voluntary 3 for > 5 Initiatives
2 for 3–5 Initiatives
1for < 3 Initiatives
ENR1 Environment Number of Environment Initiatives undertaken by the Company Voluntary 3 for > 5 Initiatives
2 for 3–5 Initiatives
1for < 3 Initiatives
ENR2 Number of ISO certifications Acquired by the Company Voluntary 3 for > 5 Certifications
2 for 3–5 Certifications
1for < 3 Certifications
ENR3 Awards and Recognitions Achieved by the Company Voluntary 3 for > 5 Awards
2 for 3–5 Awards
1for < 3 Awards
CGP   Corporate Governance Performance   Sum of Score of all Parameters
  1. Source: Developed by Researcher