IndexIntroductionBodyConclusionIntroductionIn India, Corporate Governance strategies are based on two modes, “The Ministry of Corporate Affairs (MCA)” and the “Securities and Exchange Board of India (SEBI).” By virtue of Clause 49, SEBI can authorize its power over the corporate governance of various Indian companies. All companies must comply with the requirements listed by SEBI otherwise there will be repercussions on the same. The function of MCA is to make companies feel comfortable so that they can discuss beliefs and notions with each other for overall holistic growth. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay In the words of the "Cadbury Committee", corporate governance refers to that system that governs the functioning of the company. “Tricker” on the other hand believes that corporate governance is a set of rules that dictate how top management and employees communicate and interact. The urgency of proper corporate governance has emerged after several incidents of corporate scams. In the case of B. Ramalinga Raju vs. State, represented by the CBI, the management staff of the company disposed of huge amounts of money. The case was handed over to the CBI for investigation and 11 members, including the present appellant, were convicted on various charges. In another case Ketan Parekh vs SEBI, a person was charged with the crime of arbitrary control of prices of securities. The court has set a period of time until which the person will not be allowed to engage in any stock market. All these scams have been strongly condemned by shareholders, and people across the nation have called for a better corporate governance structure. A company with a well-defined corporate governance strategy always has the upper hand over others. Directors and shareholders always favor companies that have a better position and reputation in the market. Furthermore, before investing in a particular company, foreign investors always research the company's corporate governance strategies. There are no limits to how corporate governance works. It has a variety of functions related to different industries. It allows the company to step out of its comfort zone and adapt to other roles. For example, it allows the Board of Directors to take care of management work in addition to being limited to regulatory functions. It also allows employees to participate in company activities other than their normal day-to-day work. The decision is up to the company to choose the most suitable governance strategy to achieve its objectives. Governance must be such that the organization's activities are flexible and inculcates a sense of togetherness among individuals. Transparency and accountability are two important corporate governance checklists. Transparency allows shareholders to carefully analyze the company's annual financial statements and decide whether or not to maintain relationships with it. Accountability helps resolve internal disputes more quickly. In India, however, both these aspects are missing. 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 the inconsistencies. The next chapters will provide a detailed overview of how social media has influenced corporate governance strategies in India. BodySocial media can serve as one of the most important tools in business growth and modernization since, out of 80% of the populationworldwide, 40 billion people are socially active on the Internet. If the business resorts to a proper social networking mechanism, it can easily thrive and survive in the long term. The importance of social networks is not limited to a particular sector of the corporate organization; it is pervasive in all departments and among all members of the hierarchy. Board of Directors Nowadays, companies are always looking for new techniques and methods to grow and diversify. Such techniques allow the company to think outside the box and reformulate 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 parts of a company, has the duty to facilitate the company's business. In the case of Bates v. Standard Land Co., the court noted that most of the company's important decisions are made by the board of directors. By closely monitoring the company's social activities, the Board can determine the nature and type of data the company extracts from social media and how it is used. This will not only help in the correct use of social media but also reveal the social strategies adapted by the company's stakeholders. Administrators can also use social media as a means to communicate with its internal and external members. Audit Committee The fundamental responsibility entrusted to audit committees is to maintain the company's financial statements as accurate as possible. However, the work of the audit department is not limited to this particular function only. As the number of likes and comments on various social media posts increases, the review board can also screen these posts to ensure their authenticity. If at any time there is a shortage of staff in the role of auditors then the same can be filled by recruiting more committee members. Social media allows the team to constantly stay in touch with potential employees through advertising and networking. Employees The growth of the company largely depends on the well-being of its employees. If employees collaborate on business ventures, only these can succeed and survive in the long term. However, abuse of social platforms by employees can compromise the company's prestige and position. Consistent governance must be exercised in monitoring employees' social media activities and taking action against those who hinder the company's status. Government Both the central and state legislatures have enacted various statutes and legislations to govern the activities of companies. However, corporate governance issues are hardly discussed in existing laws. If the company's activities are monitored on social media, the government can see their negative approach and therefore change existing laws. The government can also take timely action to reduce unfair practices or introduce stricter laws to prevent their occurrence. Stakeholders Social media offers a variety of opportunities to reach and contact company stakeholders. Previously, after advertising a certain item on the company's website, you had to wait months to analyze the response. Social networks allow the company to evaluate regular visits and the number of views of its post without any additional effort. Features like “news subscriptions” and “query management” help keep stakeholders in check. In addition to the above-mentioned strategies, social media also helps in channeling messages as per the needs of the community andtherefore to build a strong relationship. The costs of adapting to social media are much lower than the actual profit. Furthermore, if social networking policies are implemented correctly, the risks can also be controlled. While there are many positive impacts of social media on corporate governance, improper implementation of the same could lead to detrimental harm in business. There is no need for members to study every single detail of social networking. All they need is to understand its effects in business operations. Negligence on the part of the company could reveal numerous confidential information to competitors. Employees should be cautious before posting or commenting on anything on the company website. Comments posted by a furloughed employee or intern must also be reviewed and scrutinized from time to time. The following points will further elaborate the barriers caused by social media in corporate governance strategies: Managerial Responsibility There may be situations where customers, employees or stakeholders use the social platform to express their thoughts and opinions about the company. The injured party can also file a lawsuit against the company. This increases the accountability 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 proved in court. Therefore, the Council must develop appropriate strategies to make the most of social networking without being subjected to unfair 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 basically a group of people who have similar thoughts and understandings. The company must deal with these people diligently as any matter posted by the company on social media is visible to people around the world. Whistle Blower refers to that person who is aware of the internal affairs of the company. These people generally inform the public or government about the company's illegal activities. In Manoj H. Mishra v. Union of India, the court observed that a whistleblower must have the purpose of exposing the company's bad image in the eyes of the public. With the rapid growth of social media, whistleblowers now have the ability to post vital company information on their websites or Facebook pages. Such revelations not only cause reputational damage, but also bring a series of lawsuits against the company. In the case 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 unfair practices adopted by his company. The video soon went viral and reached top officials, as a result the company suffered serious damage. Delloitte and Touche LLP interviewed a group of people about the impact of social media on corporate governance. The finding states that “social media” represents one of the biggest risks in business strategies as it can make or break company goodwill in minutes. In addition to the complaints mentioned, competitors or other people hostile to the company can provide evidence against the goodwill of the company. This can cause a decline in the company's revenues and profits. To combat the challenges of social media, it is ideal for the company to adopt a well-defined social media policy. The policy usually sets out how online media is to be used and the limitations on its use. It also contains provisions establishing sanctionswhich employees or interested parties will face if they act in conflict with the aforementioned guidelines. The guidelines must not conflict with any legal statute or human rights convention. The policy can only work within 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 power to track the employee beyond the policies provided, this may violate the employee's right to privacy. The company has the right to protect its data from theft or misuse. Although there is no direct legislation providing for data protection, the same is governed by the Information Technology Act, 2000. As per the provisions of the Act, if anyone violates the privacy rights of the company by disclosing material facts on the Internet, he or she may be charged under of the statute. Similarly, if the company discloses personal data relating to stakeholders and employees or fails to maintain adequate security, it can be charged under Section 43A of the IT Act, 2000. The social media strategy must be structured in such a way as to better adapt to the corporate governance of all company areas. The following points highlight the sectors that have been governed by proper implementation of social media policies: Financial Facilities Several financial bodies such as the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) of the United States use social media extensively media to communicate and disseminate information to its members. They continuously improvise their social media policy based on the needs and requirements of the organization. Energy-Related Industries Companies dealing in electronic products or home appliances often face derogatory comments and viral videos regarding their products. However, they have not stopped advertising their products via social media, rather they have chosen to improve their advertising line and product quality, as well as having a social media policy to guide the company structure. This chapter will highlight cases from different business houses on how they have used social media as a corporate governance tool. International Business Machines (IBM) IBM has a variety of online software created for the sole purpose of encouraging communication and discussion among members. Furthermore, it has recently developed and launched applications such as Tivoli, Citizen IBM and WebSphere to build a community with consumers and listen to their needs and complaints. These initiatives were well received by the public and were very successful on social media with mass attention. Furthermore, these steps have enabled IBM to formulate strategies and build an online reputation in the market. Lenksart and Nestle Lenskart and Nestle have received numerous backlashes due to inappropriate comments posted by the company. Both companies enjoy good reputations in their respective categories, but due to insufficient social media guidelines and policies, the company has suffered serious setbacks to its financial reporting and market reputation. Procter & Gamble companies are always competing with each other to attract as much attention as possible. possible. Similarly, P&G has developed a “dashboard” concept through which the company analyzes and stores consumer response to their tweets, posts and advertisements. After a certain period of time, the company studies the responses to deduce which areas need to be improvised and how to strengthen governance practices. Conclusion Businesses around the world now rely on social media to communicate and build networks. Although there are numerous challenges but after doing.