GS4 · 10 marks · 150 words

In light of the recurring issues, there is a constant need to search for better ethical frameworks and models of corporate governance. Discuss with adequate examples and evidence in support of your arguments.

Answered by 4 toppers · CSE 2021

Corporate GovernanceAccountability and Ethical GovernanceEthical 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 4 answers · about 180 words.

Opening

  • A definition4 of 4

Body

  • Points4 of 4

Close

  • A summary3 of 4
  • No separate close1 of 4

The toppers’ answers

Preetam KumarAIR 9 · CSE 2021 · 192 wordsTheir whole copy

Opening · a definition

Ans: Corporate governance is the totality of process, procedure adopted in an organisation for fulfilment of its stated objectives in the best interest of its all the stakeholders.

Body · points

Need for better ethical framework

  1. Corporate failures because of misgovernance eg - Lehman Brothers Crisis in 2008.

  2. Corruption and cronyism. eg - Nirav Modi scam, Sahara scam.

  3. Insider trading instances - eg - Harshad Mehta scams.

  4. Lack of regulation in digital space eg - Cambridge Analytica scam.

Existing models of corporate governance is marred with various issues such as -

  1. Prone to monopoly or oligopoly.
  2. Market manipulation and cartelisation.
  3. Toxic work culture inside many companies.
  4. Exploitation of workers and employees for profit maximisation.

New model for corporate governance

  1. Compassionate capitalism in place of unbridled capitalism eg - companies investing hugely in the community by CSR initiatives.

  2. Actionable accountability to be put in place by constant monitoring by regulatory authority such as SEBI and RBI.

  3. Fostering of competition and initiatives breaking scope for monopoly and oligopoly. eg - Promotion of start-ups.

Close · a summary

Corporate governance which values all the stakeholders interests equally is sustainable.

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