Table 2 Corporate Governance Performance Index
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 | Â | Corporate Governance Performance | Â | Sum of Score of all Parameters |