Stockholm’s Declaration 1972

1. Man is both creature and moulder of his environment, which gives him physical sustenance and affords him the opportunity for intellectual, moral, social and spiritual growth. In the long and tortuous evolution of the human race on this planet a stage has been reached when, through the rapid acceleration of science and technology, man has acquired the power to transform his environment in countless ways and on an unprecedented scale. Both aspects of man’s environment, the natural and the man-made, are essential to his well-being and to the enjoyment of basic human rights the right to life itself.

2. The protection and improvement of the human environment is a major issue which affects the well-being of peoples and economic development throughout the world; it is the urgent desire of the peoples of the whole world and the duty of all Governments.

3. Man has constantly to sum up experience and go on discovering, inventing, creating and advancing. In our time, man’s capability to transform his surroundings, if used wisely, can bring to all peoples the benefits of development and the opportunity to enhance the quality of life. Wrongly or heedlessly applied, the same power can do incalculable harm to human beings and the human environment. We see around us growing evidence of man-made harm in many regions of the earth: dangerous levels of pollution in water, air, earth and living beings; major and undesirable disturbances to the ecological balance of the biosphere; destruction and depletion of irreplaceable resources; and gross deficiencies, harmful to the physical, mental and social health of man, in the man-made environment, particularly in the living and working environment.

4. In the developing countries most of the environmental problems are caused by under-development. Millions continue to live far below the minimum levels required for a decent human existence, deprived of adequate food and clothing, shelter and education, health and sanitation. Therefore, the developing countries must direct their efforts to development, bearing in mind their priorities and the need to safeguard and improve the environment. For the same purpose, the industrialized countries should make efforts to reduce the gap themselves and the developing countries. In the industrialized countries, environmental problems are generally related to industrialization and technological development.

5. The natural growth of population continuously presents problems for the preservation of the environment, and adequate policies and measures should be adopted, as appropriate, to face these problems. Of all things in the world, people are the most precious. It is the people that propel social progress, create social wealth, develop science and technology and, through their hard work, continuously transform the human environment. Along with social progress and the advance of production, science and technology, the capability of man to improve the environment increases with each passing day.

6. A point has been reached in history when we must shape our actions throughout the world with a more prudent care for their environmental consequences. Through ignorance or indifference we can do massive and irreversible harm to the earthly environment on which our life and well being depend. Conversely, through fuller knowledge and wiser action, we can achieve for ourselves and our posterity a better life in an environment more in keeping with human needs and hopes. There are broad vistas for the enhancement of environmental quality and the creation of a good life. What is needed is an enthusiastic but calm state of mind and intense but orderly work. For the purpose of attaining freedom in the world of nature, man must use knowledge to build, in collaboration with nature, a better environment. To defend and improve the human environment for present and future generations has become an imperative goal for mankind-a goal to be pursued together with, and in harmony with, the established and fundamental goals of peace and of worldwide economic and social development.

7. To achieve this environmental goal will demand the acceptance of responsibility by citizens and communities and by enterprises and institutions at every level, all sharing equitably in common efforts. Individuals in all walks of life as well as organizations in many fields, by their values and the sum of their actions, will shape the world environment of the future.

Local and national governments will bear the greatest burden for large-scale environmental policy and action within their jurisdictions. International cooperation is also needed in order to raise resources to support the developing countries in carrying out their responsibilities in this field. A growing class of environmental problems, because they are regional or global in extent or because they affect the common international realm, will require extensive cooperation among nations and action by international organizations in the common interest.

The Conference calls upon Governments and peoples to exert common efforts for the preservation and improvement of the human environment, for the benefit of all the people and for their posterity.


States the common conviction that:

Principle 1

Man has the fundamental right to freedom, equality and adequate conditions of life, in an environment of a quality that permits a life of dignity and well-being, and he bears a solemn responsibility to protect and improve the environment for present and future generations. In this respect, policies promoting or perpetuating apartheid, racial segregation, discrimination, colonial and other forms of oppression and foreign domination stand condemned and must be eliminated.

Principle 2

The natural resources of the earth, including the air, water, land, flora and fauna and especially representative samples of natural ecosystems, must be safeguarded for the benefit of present and future generations through careful planning or management, as appropriate.

Principle 3

The capacity of the earth to produce vital renewable resources must be maintained and, wherever practicable, restored or improved.

Principle 4

Man has a special responsibility to safeguard and wisely manage the heritage of wildlife and its habitat, which are now gravely imperilled by a combination of adverse factors. Nature conservation, including wildlife, must therefore receive importance in planning for economic development.

Principle 5

The non-renewable resources of the earth must be employed in such a way as to guard against the danger of their future exhaustion and to ensure that benefits from such employment are shared by all mankind.

Principle 6

The discharge of toxic substances or of other substances and the release of heat, in such quantities or concentrations as to exceed the capacity of the environment to render them harmless, must be halted in order to ensure that serious or irreversible damage is not inflicted upon ecosystems. The just struggle of the peoples of ill countries against pollution should be supported.

Principle 7

States shall take all possible steps to prevent pollution of the seas by substances that are liable to create hazards to human health, to harm living resources and marine life, to damage amenities or to interfere with other legitimate uses of the sea.

Principle 8

Economic and social development is essential for ensuring a favorable living and working environment for man and for creating conditions on earth that are necessary for the improvement of the quality of life.

Principle 9

Environmental deficiencies generated by the conditions of under-development and natural disasters pose grave problems and can best be remedied by accelerated development through the transfer of substantial quantities of financial and technological assistance as a supplement to the domestic effort of the developing countries and such timely assistance as may be required.

Principle 10

For the developing countries, stability of prices and adequate earnings for primary commodities and raw materials are essential to environmental management, since economic factors as well as ecological processes must be taken into account.

Principle 11

The environmental policies of all States should enhance and not adversely affect the present or future development potential of developing countries, nor should they hamper the attainment

of better living conditions for all, and appropriate steps should be taken by States and international organizations with a view to reaching agreement on meeting the possible national and international economic consequences resulting from the application of environmental measures.

Principle 12

Resources should be made available to preserve and improve the environment, taking into account the circumstances and particular requirements of developing countries and any costs which may emanate- from their incorporating environmental safeguards into their development planning and the need for making available to them, upon their request, additional international technical and financial assistance for this purpose.

Principle 13

In order to achieve a more rational management of resources and thus to improve the environment, States should adopt an integrated and coordinated approach to their development planning so as to ensure that development is compatible with the need to protect and improve environment for the benefit of their population.

Principle 14

Rational planning constitutes an essential tool for reconciling any conflict between the needs of development and the need to protect and improve the environment.

Principle 15

Planning must be applied to human settlements and urbanization with a view to avoiding adverse effects on the environment and obtaining maximum social, economic and environmental benefits for all. In this respect projects which arc designed for colonialist and racist domination must be abandoned.

Principle 16

Demographic policies which are without prejudice to basic human rights and which are deemed appropriate by Governments concerned should be applied in those regions where the rate of population growth or excessive population concentrations are likely to have adverse effects on the environment of the human environment and impede development.

Principle 17

Appropriate national institutions must be entrusted with the task of planning, managing or controlling the 9 environmental resources of States with a view to enhancing environmental quality.

Principle 18

Science and technology, as part of their contribution to economic and social development, must be applied to the identification, avoidance and control of environmental risks and the solution of environmental problems and for the common good of mankind.

Principle 19

Education in environmental matters, for the younger generation as well as adults, giving due consideration to the underprivileged, is essential in order to broaden the basis for an enlightened opinion and responsible conduct by individuals, enterprises and communities in protecting and improving the environment in its full human dimension. It is also essential that mass media of communications avoid contributing to the deterioration of the environment, but, on the contrary, disseminates information of an educational nature on the need to project and improve the environment in order to enable mal to develop in every respect.

Principle 20

Scientific research and development in the context of environmental problems, both national and multinational, must be promoted in all countries, especially the developing countries. In this connection, the free flow of up-to-date scientific information and transfer of experience must be supported and assisted, to facilitate the solution of environmental problems; environmental technologies should be made available to developing countries on terms which would encourage their wide dissemination without constituting an economic burden on the developing countries.

Principle 21

States have, in accordance with the Charter of the United Nations and the principles of international law, the sovereign right to exploit their own resources pursuant to their own environmental policies, and the responsibility to ensure that activities within their jurisdiction or control do not cause damage to the environment of other States or of areas beyond the limits of national jurisdiction.

Principle 22

States shall cooperate to develop further the international law regarding liability and compensation for the victims of pollution and other environmental damage caused by activities within the jurisdiction or control of such States to areas beyond their jurisdiction.

Principle 23

Without prejudice to such criteria as may be agreed upon by the international community, or to standards which will have to be determined nationally, it will be essential in all cases to consider the systems of values prevailing in each country, and the extent of the applicability of standards which are valid for the most advanced countries but which may be inappropriate and of unwarranted social cost for the developing countries.

Principle 24

International matters concerning the protection and improvement of the environment should be handled in a cooperative spirit by all countries, big and small, on an equal footing.

Cooperation through multilateral or bilateral arrangements or other appropriate means is essential to effectively control, prevent, reduce and eliminate adverse environmental effects resulting from activities conducted in all spheres, in such a way that due account is taken of the sovereignty and interests of all States.

Principle 25

States shall ensure that international organizations play a coordinated, efficient and dynamic role for the protection and improvement of the environment.

Principle 26

Man and his environment must be spared the effects of nuclear weapons and all other means of mass destruction. States must strive to reach prompt agreement, in the relevant international organs, on the elimination and complete destruction of such weapons.

21st plenary meeting

16 June 1972

Sources of Int Env Law

Treaties, protocols, conventions, etc.

International environmental agreements are generally multilateral (or sometimes bilateral) treaties (a.k.a. convention, agreement, protocol, etc.). The majority of such conventions deal directly with specific environmental issues. There are also some general treaties with one or two clauses referring to environmental issues but these are rarer.[citation needed] There are about 1000 environmental law treaties in existence today; no other area of law has generated such a large body of conventions on a specific topic.[citation needed]

Protocols are subsidiary agreements built from a primary treaty. They exist in many areas of international law but are especially useful in the environmental field, where they may be used to regularly incorporate recent scientific knowledge. They also permit countries to reach agreement on a framework that would be contentious if every detail were to be agreed upon in advance. The most widely known protocol in international environmental law is the Kyoto Protocol.

[edit] Customary international law

Customary international law is an important source of international environmental law. These are the norms and rules that countries follow as a matter of custom and they are so prevalent that they bind all states in the world. When a principle becomes customary law is not clear cut and many arguments are put forward by states not wishing to be bound. Examples of customary international law relevant to the environment include the duty to warn other states promptly about icons of an environmental nature and environmental damages to which another state or states may be exposed, and Principle 21 of the Stockholm Declaration (‘good neighbourliness’ or sic utere).

[edit] Judicial decisions

International environmental law also includes the opinions of international courts and tribunals. While there are few and they have limited authority, the decisions carry much weight with legal commentators and are quite influential on the development of international environmental law.

The courts include: the International Court of Justice (ICJ); the international Tribunal for the Law of the Sea (ITLOS); the European Court of Justice; and regional treaty tribunals. Arguably the World Trade Organisation’s Dispute Settlement Board (DSB) is getting a say on environmental law also.

These principles have been adopted, as indicated, from either the Rio Declaration on Environment and Development or the IUCN Draft Covenant on Environment and Development

Common Concern

The global environment is a common concern of humanity. (IUCN Covenant, Principle 13)        Notification and Consultation

States shall provide prior and timely notification and relevant information to potentially affected States on activities that may have a significant adverse transboundary environmental effect and shall consult with those States at an early stage and in good faith. (Rio Declaration, Principle 19)

Common but Differentiated Responsibilities

In view of the different contributions to global environmental degradation, States have common but differentiated responsibilities. (Rio Declaration, Principle 7)    Peaceful Resolution of Disputes

States shall resolve all their environmental disputes peacefully and by appropriate means in accordance with the Charter of the United Nations. (Rio Declaration, Principle 26)

Duty Not to Cause Environmental Harm

States have the responsibility to ensure that activities within their jurisdiction or control do not cause damage to the environment of other States or of areas beyond the limits of national jurisdiction. (Rio Declaration, Principle 2)    The Polluter Pays Principle

National authorities should promote the internalization of environmental costs and the use of economic instruments, taking into account the approach that the polluter should, in principle, bear the cost of pollution. (Rio Declaration, Principle 16)

Environmental Impact Assessment

Environmental impact assessment shall be undertaken for proposed activities that are likely to have a significant adverse impact on the environment and are subject to a decision of a competent national authority. (Rio Declaration, Principle 17)             The Precautionary Principle

Where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation. (Rio Declaration, Principle 15)

Global Partnership

States shall cooperate in a spirit of global partnership to conserve, protect and restore the health and integrity of the Earth’s ecosystem. (Rio Declaration, Principle 7)          Public Participation

Environmental issues are best handled with the participation of all concerned citizens, at the relevant level. (Rio Declaration, Principle 10)


In order to achieve sustainable development, environmental protection shall constitute an integral part of the development process and cannot be considered in isolation from it. (Rio Declaration, Principle 4)       Right to Development

The right to development must be fulfilled so as to equitably meet developmental and environmental needs of present and future generations. (Rio Declaration, Principle 3)

Nonrelocation of Harm

States should effectively cooperate to discourage or prevent the relocation and transfer to other States of any activities and substances that cause severe environmental degradation or are found to be harmful to human health. (Rio Declaration, Principle 14)     State Sovereignty

States have the sovereign right to exploit their own resources pursuant to their own environmental and developmental policies. (Rio Declaration, Principle 2)

Company Law

What is winding up of a company? (s-234 of company act 1994)

The legal process of dissolving a company or corporation by collecting all assets and outstanding income, satisfying all the creditors claims, and distributing whatever remains (the net assets). These may be distributed as cash or in kind, first to preferred stockholders, if any, and then to remaining shareholders, if any, pro rata. Winding up is in anticipation of a company’s dissolution. The registration of a company also dissolved.

What are the methods of winding up of a company?

There are three method of winding up of a company.

i) Winding up of a company order by court.
ii) Voluntary process
iii) Subject to the supervision by the court.

i) Winding up of a company order by court

Once winding up commences (which depends upon applicable law, but will generally be when the petition was originally presented, and not when the court makes the order[8]), dispositions of the company’s property are generally void,[9] and litigation involving the company is generally restrained.[10]

Upon hearing the application, the court may either dismiss the petition, or make the order for winding-up. The court may dismiss the application if the petitioner unreasonably refrains from an alternative course of action.[11]

The court may appoint an official receiver, and one or more liquidators, and has general powers to enable rights and liabilities of claimants.

Voluntary winding up occurs when the members of the company resolve to voluntarily wind-up the affairs of the company and dissolve. Voluntary winding up begins when the company passes the resolution, and the company will generally cease to carry on business at that time (if it has not done so already). If the company is solvent, and the members have made a statutory declaration of solvency, the liquidation will proceed as a members’ voluntary winding-up. In such case, the general meeting will appoint the liquidator(s). If not, the liquidation will proceed as a creditor’s voluntary winding-up, and a meeting of creditors will be called, to which the directors must report on the company’s affairs. Where a voluntary liquidation proceeds by way of creditor’s voluntary liquidation, a liquidation committee may be appointed.

iii) Subject to the supervision by the court.
shareholders of a company apply to the court for winding up a company under the supervision of the court and if the court presumed that the shareholders or any other parties would be incur losses then the court will take responsibility to winding up a company.

What is share?

A unit of ownership interest in a corporation or financial asset. While owning shares in a business does not mean that the shareholder has direct control over the business’s day-to-day operations, being a shareholder does entitle the possessor to an equal distribution in any profits, if any are declared in the form of dividends. The two main types of shares are common ordinary shares and preferred shares.

There are two main types of stock: common and preferred. Common stock usually entitles the owner to vote at shareholders’ meetings and to receive dividends. Preferred stock generally does not have voting rights, but has a higher claim on assets and earnings than the common shares. For example, owners of preferred stock receive dividends before common shareholders and have priority in the event that a company goes bankrupt and is liquidated.

Rights of an ordinary share-

1)       To get a portion of profit.
2) Right to get capital back after winding up of a company.
3)Right to get extra profit.
4) Right to vote at Shareholders meeting.

Liabilities- Common shareholders will liable only that he owes to get share.
Rights of  preferred shareholders-
1) To administer and control of a company according to M.A.
2) To get dividend.
3) Right to get capital back after winding up of a company.

3) Voting power. ( Not all times)
Liabilities- Common shareholders will liable only that he owes to get share.
Q. What is debenture? Discuss the classification of it.

Debenture is a debt instrument to raise funds. It has a maturity period associated with it. At the end of the maturity, the company(borrower) should return the interest and principal amount.
Debenture Redemption Reserve is an amount kept as reserve for paying the debenture holder at the end of the maturity period.
According to Palmer, Any instrument under seal evidencing a deed the essence of it being the admission of indebtedness.

Different types of debenture.

1) Ordinary debenture-When debenture issued without taking any mortgage or provide any security then it called ordinary debenture.
2) When debenture issued by taking moveable or unmovable property as a  mortgage  then it called mortgage debenture.
3) Re-tenable debenture-This type of debenture provide a certain amount of interest after a specific period.
Ir-retenable debenture-If a company failed to pay interest or a company wind up then the debt that has to pay of a company is called Ir-retenable debenture.
Register debenture-Where the owner of a debenture’s name, address is being register in a particular book or register then the debenture is called register debenture.
Un-register debenture-In a un-register the name and address of a debenture owner is not register in a book.
Difference bt Share and debenture.

Share capital is that what is gain to sale share.

Debenture capital is that what is gain to sale a debenture.Share holders are the owner of a company.

Debenture holders are not the owner of a company they are only debt provider.Share holders have liability but debenture holders have not any liability.

Share holders got dividend but debenture owner get interest.

Shareholders have voting power but debenture holders have not voting power.

Share holders can administer the company where the company’s interest in involved. But debenture owner has not such power.

No need to provide any mortgage but debenture holder can take mortgage.

Shareholders have no guarantee of profit but debenture holders have guarantee for profit.

Dividends are payments made by a corporation to its shareholders. It is the portion of corporate profits paid out to stockholders.[1] When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be paid to the shareholders as a dividend. Many corporations retain a portion of their earnings and pay the remainder as a dividend.

Rules of devidend –

1) Devidend should paid in cash
2) Devidend declared by the Board of Director of a company.
3) AGM is necessary to reconcilation of devidend.
4) Devidend is not given from capital.
5) Devidend is from current fiscal  year or previous years due dividend.
6) Dividend must be paid if it declared once but it can transfer as a capital.
7) Share holders are not entitled to imense pressere to board of director for more devidend as company earn huage profit.

Types of dividend-
1) Annual dividend-Annual dividend paid only end of a fiscal year after Annual General Meeting.
2) Interim Dividend- Sometimes dividend is paid before the end of a fiscal year. This type of dividend is conferred as interim dividend.
3) Unclaimed Dividend- The portion of dividend that the share holders are not demanded is conferred as a unclaimed dividend.

What is meeting? Types of meeting and essential elements of meeting.

Company meeting means an organised assemble of person (such as shareholders, directors, and creditors) according to law for transaction of business of common interest.

Types of meeting-

(1) Annual General meeting(Sec-81)
(2) Statutory meeting ( S-83)

(3) Extraordinary General meeting(S-87)

(1) Annual General meeting(Sec-81)

Every company shall in each year of the Gregorian calendar hold in addition to any other meetings a general meeting as its annual general meeting and shall specify the meeting as such in the notice calling it. and not more than fifteen months shall elapse between the date of one annual general meeting of a company and that another.
(2) Statutory meeting ( S-83)
Every company limited by shares and every company limited by guarantee and having a capital shall, within a period of not less than one month and not more than six months from the date at which the company is entitled to commence business, hold a general meeting of the company such meeting is referred to as “ statutory meeting”.

(3) Extraordinary General meeting(S-87)
When a extraordinary
resolution is needed then such types of meeting assemble to pass extraordinary resolution. Notice has to serve to the respective authority before 21 days of the projected meeting and the intention to propose the special resolution has been duly given.

Elements of meeting-1) Convey meeting by proper authority ( B.D)
2) Notice has to specify date, time,place.
3) For AG.M notice has to serve before 14 days and for Statutory meeting 21 days.
4) Agenda has to fix up.
5) Quram has to fulfill, for private company if there member above 6 then 2 and for public company Lt 5 person.
6) Proxy- Proxy can be attain as a representative. He can participate voting but prohibited to  deliver any speech.
7) Meeting will held in presence of proper person
8) Chairman has to select
9) Meeting will conducted according to custom of company law.
9) Meeting should be Legal purposes and resolution proposes must be lawful.

Promoter-.a person who initiates a business undertaking or corporation and is responsible to raise capital or funds for the new undertaking.He is either the major stock holder or the person responsible for management of the undertaking and receives stock for his efforts called “promational stock” which is limited as it is supported by effort and not cash or assets.

Business Ethics

Q.Define Ethics.

Ethics which is a branch of philosophy deals fundamentally with the role of human conducts from word . point of view the word ethics comes from the Greek word ethos that means character on custom. Today we are the word ethos to refer to the distinguish disposition, character or attitude of a specific people, culture or group.

The basic concerns of ethics, is that

Individual character including what it means to be a good person.

The social rules that govern and limit our conduct, especially the ultimate rules concerning right and wrong which we call morality.

Webster’s Niuth New collegiate Dictionary-

Ethics is defined as, the discipline dealing with that is good and bad with word duty and obligation.

Personal Ethics has been referred to as, the rules by which as individual lives his or her personal life.

According Ethics pertains to the code that guide the professional conducts of accounts.

Q.2 Discuss the types of Ethical study

Ans. (a) Descriptive ethics

(b) Normative ethics

(c) Meta ethics

(d) Special ethics

Descriptive ethics-

Closely related to anthropology, sociology and psychology.

Consists in studying and describing the morality of a people culture or society.

Compares and contrast different word systems, codes, practices ,beliefs, principles and values.

Provide basic material that normative ethics must account for.

Provide a touchstone or the considered morality of a people or society with which the normative theory must more or less.

Normative Ethics –

Systematically attempts to supply and to justify a coherent moral system.

–         The task of normative ethics, it attempts to form into a related whole the various norms and values of a society morality.

–         It attempts in a variety ways to justify the basic principles of morality.

–         It attempts to find the basic principles of particular norms.

Q3 What is business ethics?

Business ethics is a specialized area of general ethics in which an awareness of ethics in which an awareness of ethical issues and a systematic approach to solving them are particular important. It is the establishment and maintenance of vital and significant relationship among human beings-specially employers employees. competition, consumers, suppliers creditors, community etc.

In this study, it is the constitutes of right and wrong, good, or bad.

Discuss value orientation in business.

The values system of an owner entrepreneur is the key to establishing an ethical organizations is the key to establishing an ethical organization.

An owner has the unique opportunity to display honesty integrity and ethics in all key decisions. Entrepreneurs possess a strong potential to establish high ethical students, in all business decision.

In the organization, ethical decision making is a complex challenge due to the nature and personal perception of various values.

Entrepreneurs must realize that their personal integrity and ethical example will be the key to their employers ethical performance. Their values can permit and characterize the organization.

of bill of leading, what is the difference between bill of leading and charter part?

Discuss Professional codes of Ethics
Etiquette and law are the main professional codes of ethics. These are the rules that are supposed to govern the conduct of members of  a given profession. The members of a profession are  understood to have agreed to abide by those as a condition of their engaging in that profession. Sometimes these codes are unwritten and are part of the common understanding of members of a profession. Codes may be written down by an authoritative body for better taught.
What is corporate governance?Corporate governance consist of two elements-
1)       The long term relationship
2)       The transactional relationship
The long term relationship- Which has to deal with checks and balances incentives for managers and communicative between management and investor.
The transactional relationship-Which involves dealing with disclosure and authority.
This implies an adversarial relationship between management and investor and attitude of mutual suspicion.
Principles of good corporate governance-
1)       Ethical approach –culture, society and organizational regulation.
2)       Balanced objectives-congruence of goods of all interested parties.
3)       Each party plays his part-roles key players owners/directors/staff.
4)       A decision making process in place based on a model reflecting the above giving due weight to all stakeholders.
5)       Stake holders treated with equal concern
Some have greater weight than others.
(6) Accounting and transparency –to all stakeholders.
Five golden rules
i)                     Ethics-a clearly ethical  basis to the business.
ii)                   Congruence of goals- appropriate goods arrived at through the creation of a suitable stakeholders decision making model.
iii)                  Strategic management an effective strategic process which incorporates stakeholders value
iv)                 Organization- An organization suitably structured to effect good corporate governance.
v)                   Reporting- Reporting systems structured to provide transparency and accountability.
Good corporate governance is good management.
The regulatory approach to the subject would regard governance as sometimes on its own to do with issuing a balance between the various interested parties in a companies affairs or more particularly a way of making sure that the chairman or chief executives is under control, producing transparency
In reporting or curbing over generous remuneration packages.
-having a clean and achievable goal
–   having a feasible strategy to achieve it.
– Creating an organization appropriate to deliver.
-Having   in place a reporting system to guide progress.
Attitude towards corporate governance
1)       Super flues   imposition and unnecessary
2)       Good and necessary
3)       High priority.
Definition of corporate social responsibility
The concept of social responsibility is often expressed as the voluntary assumption of responsibilities of business firm. More specific social responsibility according to some accounts is the selection of corporate goals and evaluation of outcomes.
Economic and social responsibility
Economic and social responsibility to produce goods and services and provide jobs and good wages to the work force which earning a profit. It also includes the obligation to seek out supplies of raw materials to discovers new resources and technological improvements and to develop new product. The vast develop new product. The  vast body of business law is constantly increasing as legislature, regulatory agencies and the courts respond to greater social expectations and impose new legal obligations on business.
Q-1 Who are the stake holders ? Mention their responsibility how they work in the business sector?Stakeholder is  a person, group, organization, or system who affects or can be affected by an organization’s actions.
In the business process, stake holders  are greatly influenced , a company’s decision and actions. Stakeholders includes employees, customers, suppliers, community organizations, subsidiary and affiliates joint venture partners, local neighborhoods, investors and shareholders
Responsibility of stake holders-
Maximising value for the stakeholders and incorporating their needs into strategic decisions; discharging legal responsibilities and minimising harm, the influence and involvement the board of directors/governing body exerts in developing strategic direction.
Not all stakeholders have the same priorities. Employees interested in pay and working conditions may take a different stance from that of shareholders interested in profits and dividends or customers interested both in good quality and low prices. Different governments will take varying views on how far they should benefit from a company’s presence in their country, and in what ways.
Stake holders of a company can play a vital role of a country for rapid economic growth and poverty eradication.
In most of the cases CSR could help the company for its reputation and other sectors, like human resources, risk management, brand differentiation, attention diversion etc.
An effective CSR activity can also improve companies access to capital, enhance their brand image, increase sales, motivate and develop employees, sharpen decision making, improve risk management and reduce costs.
Q-2 What is SWOT analysis? Discuss it briefly.
SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieving that objective.
SWOT analysis of complaince of CSR in Bangladesh.
Strength- 1) Better for the company 2.) Ethics in business can be implemented 3)Huge scope for improving companies image. 4)Greater acceptance in the society
Weakenss-1) lack of skill corporate manager 2) Lot of companies are not implementing CSR properly3) Still at an infant stage to exercise
1)       Opportunity- In the age of globalization ethical business procedure is rising
2)       ) Scope for product marketing
3)       Helpful for developing core competencies
4)       Companies which are interested not only in earning profit but also do well in the long run.
Threat-1) Companies normally want supernormal profit and they do not want to invest for social responsibilities
2)Companies must exercise CSR for their own sake of existancee.
Q-1 Discus the criticism  of companies that doing CSR activities?CSR is a good business strategy . The idea of CSR has come into focus for ethical business. But there is a criticism that companies doing CSR  activities  are only for making profit by producing environment friendly products.  As an example , a company developing new technology product, which  reduces consumer cost and pollution free will be able to promote its CSR credential as well as increase profits. Here criticism is that the first thought of this company is to produce this product is for profit. CSR initiative is a way to attract their customers.
Some critics say, it is necessary for companies to offer better pay and conditions which leads to an overall rise in standards and to wealth creation. But overlooking all condemnation, it is true that, today’s Multinational Corporations (MNCs) realize that they need to design more effective strategies for managing reputation risk and business ethics. Basically the CSR perception comes from ethical business . Ethical practice will reward business with higher profits. It makes easier for governments, consumers, communities, and the media pressure companies to be more society responsible.
Q-2 Why a corporation needs to built corporate citizenship?
Conducting business ethically is often a difficult task for employees at any level of an organization. Though top executives are under constant pressure from stakeholders to be informed of a company’s bottom line in the short term, responsibility for designing principles of ethical conduct and monitoring their implementation lies in their hands. Leadership plays a crucial role in ethics.
Hence, a corporation needs to build a corporate citizenship is needed for.
O Operating with ethical business practices.
O Treating employees well
O Marketing profit, paying taxes, providing jobs
O Providing safe and reliable products /services
0 Having a good environment record
0 Working to improve conditions in the community.
Q.Discus the activities of some companies that doing CSR in Bangladesh.
However, for foreign companies namely Unilever Bangladesh Ltd, British American tobacco (BAT) company, City group etc are doing CSR activities. Details are discus below-
1. Uniliver works for women’s economic empowerment through information and resources in the areas of career, education and enterprise. This company created a foundation namely ‘ fair and lovely foundation’ which has taken innovative steps like vocational training for empowering women.
2. BAT is also engaging in social initiatives to encourage social tree plantation , Medicare services for poor tobacco farmers and families. This company is also operating a computer training school named ‘Dishary’ in four district head quarters.
3. City group arranges some training programs and micro-finance entrepreneur
awards. This group also arranges training sessions for local journalists, bankers and workers.
4.          From 2001, DHL has been sponsoring “ Bangladesh business award” in association with Daily star .
1. What is leadership?
The ability “to get people to follow voluntarily.”
Those entities that perform one or more acts of leading.
The ability to affect human behavior so as to accomplish a mission designated by the leader
Different types of leadership
Autocratic Leader: leader has absolute power and listens to no one else (dictator).
Bureaucratic Leader: does everything by the book insuring the staff follow all procedures exactly.
Transformational Leader: is a true leader and leads to inspire their employees and team.
Laissez-faire Leader: leaves their employees alone to decide for themselves, they are usually surrounded by a skillful team of employees.
Democratic Leader: invites other employees and team members to come up with decisions and relies on an agreement between everyone of what is best.
Leadership is a quality an individual may possess. One can categorize the exercise of leadership as either actual or potential:
* actual – giving guidance or direction, for example: a teacher being a leader to a student, as in the phrase “the emperor has provided satisfactory leadership”.
* potential – the capacity or ability to lead, as in the phrase “she could have exercised effective leadership”; or in the concept “born to lead”.
Leadership can have a formal aspect (as in most political or business leadership) or an informal one (as in most friendships). Speaking of “leadership” (the abstract term) rather than of “leading” (the action) usually implies that the entities doing the leading have some “leadership skills” or competencies.
other categorisation from a 1939 study by Kurt Lewin suggest 3 types of leadership:
* Authoritarian Leadership (Autocratic)- provides clear expectations for what needs to be done
* Participative Leadership (Democratic)- the study found that style is generally the most effective. Democratic leaders offer guidance to the group, but also participate in the group and allow input from other members.
* Delegative (Laissez-Fair)- Researchers found that children under this type of leadership were the least productive of all three groups
Q 2 What are the role of leadership in a formal organization?
An organization that is established as an instrument or means for achieving defined objectives has been referred to as a formal organization. Its design specifies how goals are subdivided and reflected in subdivisions of the organization. Divisions, departments, sections, positions, jobs, and tasks make up this work structure. Thus, the formal organization is expected to behave impersonally in regard to relationships with clients or with its members. According to Weber’s definition, entry and subsequent advancement is by merit or seniority. Each employee receives a salary and enjoys a degree of tenure that safeguards him from the arbitrary influence of superiors or of powerful clients. The higher his position in the hierarchy, the greater his presumed expertise in adjudicating problems that may arise in the course of the work carried out at lower levels of the organization. It is this bureaucratic structure that forms the basis for the appointment of heads or chiefs of administrative subdivisions in the organization and endows them with the authority attached to their position.
Q. 3 Explain trait theory.
People are born with inherited traits.Some traits are particularly suited to leadership.
People who make good leaders have the right (or sufficient) combination of traits.
Early research on leadership was based on the psychological focus of the day, which was of people having inherited characteristics or traits. Attention was thus put on discovering these traits, often by studying successful leaders, but with the underlying assumption that if other people could also be found with these traits, then they, too, could also become great leaders.
Stogdill (1974) identified the following traits and skills as critical to leaders.
Traits     Skills
* Adaptable to situations
* Alert to social environment
* Ambitious and achievement-orientated
* Assertive
* Cooperative
* Decisive
* Dependable
* Dominant (desire to influence others)
* Energetic (high activity level)
* Persistent
* Self-confident
* Tolerant of stress
* Willing to assume responsibility
* Clever (intelligent)
* Conceptually skilled
* Creative
* Diplomatic and tactful
* Fluent in speaking
* Knowledgeable about group task
* Organised (administrative ability)
* Persuasive
* Socially skilled
McCall and Lombardo (1983) researched both success and failure identified four primary traits by which leaders could succeed or ‘derail’:
* Emotional stability and composure: Calm, confident and predictable, particularly when under stress.
* Admitting error: Owning up to mistakes, rather than putting energy into covering up.
* Good interpersonal skills: Able to communicate and persuade others without resort to negative or coercive tactics.
* Intellectual breadth: Able to understand a wide range of areas, rather than having a narrow (and narrow-minded) area of expertise.
There have been many different studies of leadership traits and they agree only in the general saintly qualities needed to be a leader.
For a long period, inherited traits were sidelined as learned and situational factors were considered to be far more realistic as reasons for people acquiring leadership positions.
Paradoxically, the research into twins who were separated at birth along with new sciences such as Behavioral Genetics have shown that far more is inherited than was previously supposed. Perhaps one day they will find a ‘leadership gene’.
Q-4 What is situational leadership explain?
The best action of the leader depends on a range of situational factors.
When a decision is needed, an effective leader does not just fall into a single preferred style, such as using transactional or transformational methods. In practice, as they say, things are not that simple.
Factors that affect situational decisions include motivation and capability of followers. This, in turn, is affected by factors within the particular situation. The relationship between followers and the leader may be another factor that affects leader behavior as much as it does follower behavior.
The leaders’ perception of the follower and the situation will affect what they do rather than the truth of the situation. The leader’s perception of themselves and other factors such as stress and mood will also modify the leaders’ behavior.
Yukl (1989) seeks to combine other approaches and identifies six variables:
* Subordinate effort: the motivation and actual effort expended.
* Subordinate ability and role clarity: followers knowing what to do and how to do it.
* Organization of the work: the structure of the work and utilization of resources.
* Cooperation and cohesiveness: of the group in working together.
* Resources and support: the availability of tools, materials, people, etc.
* External coordination: the need to collaborate with other groups.
Leaders here work on such factors as external relationships, acquisition of resources, managing demands on the group and managing the structures and culture of the group.
Tannenbaum and Schmidt (1958) identified three forces that led to the leader’s action: the forces in the situation, the forces in then follower and also forces in the leader. This recognizes that the leader’s style is highly variable, and even such distant events as a family argument can lead to the displacement activity of a more aggressive stance in an argument than usual.
Q-5 Leadrers are born, not made explain it with the concept of leadership theories.
Leaders are born and not made.
Great leaders will arise when there is a great need.
Early research on leadership was based on the study of people who were already great leaders. These people were often from the aristocracy, as few from lower classes had the opportunity to lead. This contributed to the notion that leadership had something to do with breeding.
The idea of the Great Man also strayed into the mythic domain, with notions that in times of need, a Great Man would arise, almost by magic. This was easy to verify, by pointing to people such as Eisenhower and Churchill, let alone those further back along the timeline, even to Jesus, Moses, Mohammed and the Buddah.
Gender issues were not on the table when the ‘Great Man’ theory was proposed. Most leaders were male and the thought of a Great Woman was generally in areas other than leadership. Most researchers were also male, and concerns about androcentric bias were a long way from being realized.
Q-6 Explain with example contigency theory of leadership.
The leader’s ability to lead is contingent upon various situational factors, including the leader’s preferred style, the capabilities and behaviors of followers and also various other situational factors.
Contingency theories are a class of behavioral theory that contend that there is no one best way of leading and that a leadership style that is effective in some situations may not be successful in others.
An effect of this is that leaders who are very effective at one place and time may become unsuccessful either when transplanted to another situation or when the factors around them change.
This helps to explain how some leaders who seem for a while to have the ‘Midas touch’ suddenly appear to go off the boil and make very unsuccessful decisions.
Contingency theory is similar to situational theory in that there is an assumption of no simple one right way. The main difference is that situational theory tends to focus more on the behaviors that the leader should adopt, given situational factors (often about follower behavior), whereas contingency theory takes a broader view that includes contingent factors about leader capability and other variables within the situation.
Q-7 Leadership might have a life cycle agree or disagree explain.
If a group or an organization wants or expects identifiable leadership, it will require processes for appointing/acquiring and replacing leaders.
Traditional closed groups rely on bloodlines or seniority to select leaders and/or leadership candidates: monarchies, tribal chiefdoms, oligarchies and aristocratic societies rely on (and often define their institutions by) such methods.
Competence or perceived competence provides a possible basis for selecting leadership elites from a broader pool of potential talent. Political lobbying may prove necessary in electoral systems, but immediately demonstrated skill and character may secure leadership in smaller groups such as gangs.
Many organizations and groups aim to identify, grow, foster and promote what they see as leadership potential or ability – especially among younger members of society.
Q-3 Rights and duties, liabilities of common carrier.
Ans. Rights of Common Carrier
(1) Right to get fare
(2) Advance pay (portion of total pay)
(3) To keep in a godown  and rent of it.
(4) If perishable then he can sell.
(5) A common carrier is entitled to the agreed remuneration or to a reasonable remuneration for his services. He can demand payment in advance as well.
(6) He has a right to retain the goods and refuse delivery thereof until his charges. For the carriage are paid. In other words he can exercise particular lien over the goods.
(7) On refusal to accept delivery of the goods by the consignee, the carrier is entitled to take such steps as are reasonable in the circumstances. He can sell the goods if they are of a perishable nature or store them in a warehouse. He can recover warehousing expenses etc from the consignor. In the absence of privity of contract, the consignee cannot be made liable for such expenses
(8) He can recover damages from the consignor for loss suffered by him because of dangerous nature of goods not being explained t to him by the consignor.
Duties of common carrier
The carriers act 1865 imposes the following duties on a common carrier:
1)      A common carrier is bound to carry goods at the place of the class which he hold himself  out as being  ready to carry along his usual route, for any person offering to pay hire, unless his vehicle is already full or the goods are inadequately packed.
2)      A common carrier must carry follow the customary or agreed route. He must not deviate from it unless rendered necessary.
3)      He must carry the goods with reasonable care.
4)      The carrier must deliver the goods at the place of destination at the agreed time or within a reasonable time.
5)      When goods are in transit , the carrier is bound to obey the instructions of the consigner as to alternation of delivery.
6)      To carryout then order of the owner of goods.
1)      Liable for damages.
2)      Liable for accident & theft
3)      If act of god then carrier is not liable.
4)      If there is a war and goods are looted.
5)      Defect of packaging.
6)      If animal caught with diseases.
7)      If the goods is rotten due to taking delivery.
1)      If dangerious for human.
2)      Illegal goods
3)      If there is no room
4)      If he did not carry such types of goods
5)      If there is no root permit
6)      Logical fare is not offer
7)      If not packing properly.
Q-4 what is Bill of leading, characteristic of bill of leading, what is the difference between bill of leading and charter part?
When owner of the ship , captain , Master or representative provide a details document of proof after taking goods is called bill of lading.
Bill of lading is only for past of goods. For whole ship it will called chaterparty. If most of the ship rent by a party it also called charter party.
Bill of lading is written over a stamp. Captain master or owner of the ship must sign on it.
1)It’s a document for  caring goods .
2) It’s a documents of contract6
3) It’s a documents of right and title.
Difference between B.L & Charter Party.
It’s a document of proof for receiving goods
It’s a contract of rent of a ship
It’s a document of right for goods.
Its transferable
Its not transferable.
It’s not a leasing document
It’s a leasing document.
It’s a documents of goods that will reached a certain place.
It’s a voyage chatter or time chatter.
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