GS4 · 10 marks · 150 words

The edifice of good corporate governance is dependent on the efficacy and effectiveness of independent directors. Discuss.

Answered by 4 toppers · CSE 2021–2022

Corporate GovernanceAccountability and Ethical GovernanceImpartiality and Objectivity

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 4 answers · about 130 words · 50% drew a diagram.

Opening

  • A definition4 of 4

Body

  • Points and prose2 of 4
  • Points2 of 4

Close

  • No separate close2 of 4
  • A way forward2 of 4

The toppers’ answers

Anshu PriyaAIR 16 · CSE 2021 · 120 wordsTheir whole copy

Opening · a definition

Corporate governance refers to the mechanisms which guides the behaviour and business of the organisation.

Body · points and prose

Corporate governance refers to the mechanisms which guides the behaviour and business of the organisation.

Role of Independent Directors

(1) Ensure Justice and Fairness ↓ Respect to Minority shareholders

(2) Ensure Equal participation by all members of society Eg - Creative capitalism

(3) Free of Conflict of interest due to absence of undue influence.

(4) Focus on Neutral, impartial and non partisan governance Eg- Reliance

(5) Enhancement of Brand Value and Business prospects

Eg- prevention of insider trading in SEBI platforms

(6) leads to Ethical Management and Management of Ethics

But, Independent directors should also be complemented by

Diagram
- An ethical work culture - vigilant shareholders and Board of Directors - Impartial and Sound regulation (Eg- SEBI, RBI)

The directive of Companies Act 2013 to include independent director and at least 1 women director is a step in right direction

Close

But, Independent directors should also be complemented by The directive of Companies Act 2013 to include independent director and at least 1 women director is a step in right direction

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