GS4 · 10 marks · 150 words

Corruption distorts not only functioning of the Government in India but business and corporate activities as well. Explain and discuss how the state can effectively deal with deficit of ethics in the private sector.

Answered by 6 toppers · CSE 2018–2019

Corporate GovernanceCorruptionAccountability and Ethical GovernanceCivil Service ValuesCodes of Ethics and ConductEthical Dilemmas in Government

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 6 answers · about 170 words · 33% drew a diagram.

Opening

  • A definition50%
  • No separate opening33%
  • A figure17%

Body

  • Points67%
  • Points and prose33%

Close

  • A summary67%
  • No separate close33%

The toppers’ answers

Kanishak KatariaAIR 1 · CSE 2018 · 156 wordsTheir whole copy

Opening · a definition

Corruption is defined as misuse of public trust & power to earn benefits at the cost of public welfare.

It is visible in Government

Body · points and prose

Diagram
* Government * Leakages in Public Distribution system * Black Marketing of urea * Misappropriation of public funds

(ii) Business & Corporates → Promotion using backchannels & bribery

Diagram
* Business & Corporates * Insider trading in the stock market * Use of quid pro quo to gain contracts illegally * Keeping the prices high in case of scarce goods

It leads to → marginalisation of the poor → promotion to nepotism → promotion to mediocracy & curbs meritocracy.

Dealing with deficit of ethics

  • Promotion of Corporate Governance through laws such as Companies Act 2013

  • Asking private sector to contribute to public welfare. eg. Corporate Social Responsibility & Social License to operate

  • Fiscal incentives to ethical actions so that it can be replicated in future - eg car company taking sales hits to recall defective car units & fix them free of cost.

Close

They can get some fuel concessions or tax rebates

Private sector has an added dimension of profitability along with ethicality & legality Any activity which promotes ethical action needs to be incentivised to build public trust.

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