GS4 · 10 marks · 150 words

The challenges posed by the corporate sector's impact on climate, environmental sustainability, and living conditions has highlighted the need for responsible and inclusive business practices. In this direction, the contemporary discourse on corporate governance is emphasizing the interconnectedness of environmental, social, and governance (ESG) factors. Evaluate the ESG framework in equipping the corporate world with the capabilities to fulfill its social roles and responsibilities.

Answered by 5 toppers · CSE 2020–2024

Corporate GovernanceEnvironmental EthicsAccountability 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 160 words.

Opening

  • A definition60%
  • No separate opening40%

Body

  • Points100%

Close

  • A way forward80%
  • A summary20%

The toppers’ answers

Madhav AgarwalAIR 16 · CSE 2024 · 147 wordsTheir whole copy

Opening · a definition

ESG framework is a report that help corporate abide by their social and environmental responsibility and promote the theory of moral unity.

ESG Reporting is currently voluntary for top 1000 listing companies in India as per SEBI Regulations.

ESG equipping corporate world to fulfill social role.

Body · points

  1. Wide discussion on the report forces corporate to be mindful of their actions.

  2. Interlinkage of corporate with society as without society they cannot function.

  3. Investments: flow into corporate specially from young investors after looking at ESG.

However, ESG won't work because:

  1. Need ethics: to fulfill duty - as a law abiding entity does need law.

  2. Capitalism today is driven by animal spirits makes them find loopholes eg: green washing by H & M Brand.

Close · a way forward

Despite above, ESG framework can go a long way to promote P3 principles - People, Planet and Profit in the long run.

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