GS4 · 10 marks · 150 words

Business ethicists believe that external and internal regulations are insufficient for curtailing or preventing corporate malpractices; they strongly advocate the presence of whistleblowing mechanisms as a check against corporate misgovernance. Do you think corporate governance is incomplete without whistleblowing? Why/Why not? Explain

Answered by 5 toppers · CSE 2024–2025

Corporate GovernanceCorruptionTransparency and InformationAccountability and Ethical Governance

Syllabus: Public/Civil service values and Ethics in Public administration: Status and problems; ethical concerns and dilemmas in government and private institutions; laws, rules, regulations and conscience as sources of ethical guidance; accountability and ethical governance; strengthening of ethical and moral values in governance; ethical issues in international relations and funding; corporate governance.

How toppers approached it

From all 5 answers · about 140 words · 40% drew a diagram.

Opening

  • A definition60%
  • No separate opening40%

Body

  • Points and prose60%
  • Points40%

Close

  • A way forward100%

The toppers’ answers

Diksha RaiAIR 40 · CSE 2025 · 160 wordsTheir whole copy

Opening · a definition

Whistleblowing refers to the act of bringing out in public malpractices & corrupt activities in an organisation by a person, anonymously or otherwise.

Importance of whistle blowing in Corporate Governance

Body · points

→ Avenue for disclosing malpractices eg: Edward Snowden.

→ Fostering companionate & Ethical corporate governance eg: detering insider trading.

→ Internal procedures for complaints are not sufficient & free of bias

  • The bias of not harming company's image

→ The people who point out malpractices may face professional harm. Whistleblowing mechanism provides a less risky alternative.

However whistleblowing mechanism although necessary, is not sufficient:

  1. can be misused to settle professional scores.

  2. Ethics in corporate activities need to be organically fostered and incentivised.

  3. whistleblowing can often jeopardise company's economic fortunes in irrevocable way.

  4. Internal mechanisms are more sustainable and acceptable to Corporates.

Close · a way forward

Thus while whistleblowing mechanisms must be strengthened further, at the same time efforts shall be made to align Corporate governance to the triple imperatives

More on Corporate Governance

Ethics in the private sector: boards and disclosure, corporate social responsibility, regulatory capture, business and society.

All GS4 questions on Corporate Governance