Table of ContentsIntroductionCorpsConclusionIntroductionIn India, corporate governance strategies are based on two modalities, the “Ministry of Corporate Affairs (MCA)” and the “Securities and Exchange Board of India (SEBI) )”. Under Section 49, SEBI can authorize its power over the corporate governance of several Indian companies. All businesses must comply with the requirements listed by SEBI, otherwise there will be repercussions. MCA's function is to put businesses at ease so that they can discuss beliefs and notions with each other for holistic global growth. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay In the words of the “Cadbury Committee”, corporate governance refers to the system that governs the operation of the company. “Tricker” believes that corporate governance is a set of rules establishing how senior management and employees communicate and interact. The urgency of good corporate governance has arisen after several incidents of corporate scams. In the case of B. Ramalinga Raju v. The state, represented by CBI, huge sums of money were disclosed by the company's management personnel. The case was handed over to the CBI for investigation and 11 members, including the present appellant, were convicted on several counts. In another case Ketan Parekh v. SEBI, a person has been accused of arbitrary control of securities prices. The court set a period during which the person will not be allowed to participate in stock markets. All these scams were strongly condemned by shareholders and citizens across the country called for a better corporate governance structure. A company with a well-defined corporate governance strategy always trumps the rest. Directors and shareholders always favor companies that have a better position and reputation in the market. Additionally, before investing in a particular company, foreign investors always research the company's corporate governance strategies. There are no boundaries to how corporate governance works. It performs various functions related to different sectors. This allows the company to step out of its comfort zone and adapt to other roles. For example, this allows the board of directors to manage management work in addition to being limited to regulatory functions. Additionally, it allows employees to participate in company activities other than normal daily work. The decision is up to the company to choose the governance strategy best suited to achieve its objectives. Governance should be such that it will make the activities of the organization flexible and instill a sense of solidarity among individuals. Transparency and accountability are two important corporate governance checklists. Transparency allows shareholders to carefully analyze the company's annual accounts and decide whether or not to engage in transactions with it. The ability to respond helps resolve internal conflicts more quickly. However, in India, both these aspects are lacking. Indian companies give more importance to short-term interests than long-term ones. Considering the points mentioned above, it appears that a number of irregularities already existed and corporate governance was introduced with the aim of putting an end to these inconsistencies. The next chapters will provide a detailed overview of the impact of social media oncorporate governance strategies in India. BodySocial media can be one of the most important instruments in business growth and modernization since, out of 80% of the world's population, 40 billion people are socially active on the Internet. If the business uses a proper social networking mechanism, then it can easily thrive and survive in the long run. The importance of social media is not simply limited to a particular sector of business organization; it is omnipresent in all departments and among all members of the hierarchy.Board of DirectorsToday, companies are always looking for new techniques and methods to grow and diversify. Such techniques allow the company to think outside the box and reframe its plans and strategies. Within a company, different departments have different ways of using social media. The board of directors being one of the essential elements of a company, its mission is to facilitate the commercial functioning of the company. In the case of Bates v. Standard Land Co., the court observed that most of the company's major decisions are made by the board of directors. By closely monitoring the company's social activities, the board of directors can determine the nature and type of data. extracted by the company from social media and how they are used. This will not only contribute to proper use of social media but will also reveal the social strategies adapted by the business stakeholders. Administrators can also use social media as a means of communicating with their internal and external members. Audit Committee The fundamental responsibility entrusted to audit committees is to maintain the accounting records of the company to the best of their accuracy. However, the work of the audit service is not limited to this particular function. With the number of likes and comments on various social media posts increasing, the audit committee can also conduct an analysis of these posts to ensure their authenticity. auditors can then be filled by recruiting more members to the committee. Social media allows the team to constantly stay in touch with potential employees through advertising and networking. The growth of EmployeesCompany depends largely on the well-being of its employees. If employees cooperate in the company's initiatives, then only the company can succeed and survive in the long term. However, poor use of social platforms by employees can have harmful consequences on the prestige and position of the company. Constant governance should be put in place to monitor employee activities on social media and take action against those who hinder the company's status. GovernmentCentral and state legislatures have enacted various statutes and laws to govern the activities of businesses. However, issues related to corporate governance are rarely addressed in existing laws. If the company's activities are monitored on social networks, the government can then notice its negative approach and thus change the laws in force. The government can also take timely measures to reduce bad practices or pass stricter laws to prevent such practices from occurring.StakeholdersSocial media provides a variety of opportunities to reach out and contact business stakeholders . Previously, after announcing a certain item on the company's website, you had to waitmonths to analyze the response. Social networks allow the company to evaluate the regular visits and the number of views on its publication without any additional effort. Features like “news subscriptions” and “query management” help control interested stakeholders. Apart from the strategies mentioned above, social media also helps in channeling messages according to the needs of the community and thus building a strong relationship. The costs of adapting to social media are much lower than the actual gain. Additionally, if social media policies are properly implemented, risks can also be controlled. Although social media has many positive impacts on corporate governance, poor implementation of the same could lead to detrimental damage to business affairs. It is not necessary for members to study every detail of social media. All they need is to understand its effect on business operations. Negligence on the part of the company could reveal several confidential information to competitors. Employees should exercise caution before posting or commenting on anything on the company's website. Comments posted by a furloughed employee or intern should also be reviewed and scrutinized from time to time. The following points will further detail the obstacles caused by social media in corporate governance strategies: Responsibility of managersThere may arise situations where customers, employees or stakeholders use the social platform to express their thoughts and opinions about the company. The injured party can also take legal action against the company. This increases the responsibility of the board of directors. In the case of Sunil Bharti Mittal v. CBI, it was observed that directors can be held liable if their intention in committing the crime can be proven in a court of law. Thus, the board of directors must develop appropriate strategies to make the most of social media without being subjected to unwarranted accusations. Internal Unions Another challenge that social media can bring to corporate governance is the formation of informal groups or internal unions. These unions are essentially a group of people who share the same ideas and understandings. The company must tackle these people diligently because any topic the company posts on social media is visible to people all over the world. Whistleblower refers to the person who has knowledge about the internal affairs of the company. These people usually inform the public or the government of the company's illegal activities. In the case of Manoj H. Mishra v. Union of India, the court observed that a whistleblower must have a motive to expose the bad image of the company in the eyes of the public. With the rapid growth of social media, whistleblowers now have the ability to disclose vital company information on its websites or Facebook pages. Such revelations not only damage the reputation, but also lead to a number of lawsuits against the company. In the case of Michael DeKort v. Integrated Coast Guard Systems, an American engineer named Michael DeKort shared a video on YouTube regarding his company's affairs. The act revealed the bad practices adopted by his company. The video quickly went viral and reached senior officials, causing serious damage to the company. Delloitte and Touche LLP interviewed a group of people regarding the impact ofsocial media on corporate governance. The findings indicate that “social media” is one of the biggest risks in business strategies because it can make or break company goodwill in a matter of minutes. In addition to the challenges mentioned, competitors or others with enmity toward the company may disclose evidence against the company's goodwill. This can lead to a decline in the company's revenue and profits. In order to meet the challenges of social media, it is ideal for the company to have a well-defined social media policy in place. The policy generally defines how online media should be used and the limits on its use. It also includes provisions providing for sanctions to which employees or stakeholders will be exposed if they act contrary to the mentioned guidelines. The guidelines must not conflict with any human rights law or convention. The policy can only work inside the company and must be prepared keeping in mind the needs and requirements of the company. If at any time the supervisor exercises his or her authority to monitor the employee beyond the policies provided, this could violate the employee's right to privacy. The company has the right to protect its data against theft or misuse. Although there is no direct legislation providing for data protection, it is governed by the Information Technology Act, 2000. As per the provisions of the law, if a person violates the privacy rights of the user, undertaking by disclosing material facts on the Internet, then he can be charged under the law. Similarly, if the company reveals personal data relating to stakeholders and employees or fails to maintain adequate security, then it can be charged under Section 43A of the IT Act, 2000. The strategy of Social media should be designed in such a way that it best suits the corporate governance of all areas of business. The following points highlight sectors that have been governed by proper implementation of social media policies: Financial Facilities Multiple financial agencies, such as the United States Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), widely use social media to communicate and disseminate information. its members. They improvise their social media policy again and again according to the needs and requirements of the organization. Energy-related sectors Companies dealing with electronic products or household appliances often face derogatory remarks and viral videos regarding their products. However, they did not stop advertising their products through social media, instead they chose to improve their advertising line and the quality of their products, while having a social media policy to guide the business structure. This chapter would highlight cases of several companies on how they used social media as a corporate governance tool. International business machines (IBM) IBM offers a number of online software programs created for the exclusive purpose of encouraging communication and discussion among members. Additionally, it has recently developed and launched applications such as Tivoli, Citizen IBM and WebSphere to create a community with consumers and listen to their needs and grievances. These initiatives were well received by the public and received a lot of attention on the networks.