GS4 · 10 marks · 150 words

Sustainable growth of an organisation can result only by aligning its decisions to the interests of all stakeholders, not merely its shareholders. Do you agree? Justify with logical arguments.

Answered by 8 toppers · CSE 2021

Corporate GovernanceDimensions of EthicsAccountability and Ethical GovernanceIndian Thinkers

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 8 answers · about 150 words · 75% drew a diagram.

Opening

  • A definition50%
  • No separate opening50%

Body

  • Points88%
  • Points and prose13%

Close

  • A summary50%
  • A way forward38%
  • No separate close13%

The toppers’ answers

Gamini SinglaAIR 3 · CSE 2021 · 134 wordsTheir whole copy

Opening · a definition

Stakeholders are all those persons who get effected by the decisions, even minutely, while shareholders are the ones, who have ownership rights in organisation.

Body · points and prose

Sustainable growth of organisation

I agree, it is possible only through aligning decisions to interests of all stakeholders :-

  1. Ensures accountability.
  2. Transparency towards stakeholders.
  3. Support to organisation, by public and government is based on it's compliance with laws.
Diagram
Corporate governance Stakeholders 1. Customers (quality of product) 2. Employees (fair working conditions) 3. Government (compliance with CSR) 4. Shareholders (transparent filing, adequate dividends)

Thus, only if all stakeholders are satisfied, an organisation can thrive:

a) Customers :- If decisions not based on their need, their sales can be affected

b) Employees :- If inadequate wages, might lead to strikes eg wistron incident

c) Government : → lack of compliance with laws → sanctions,

Close · a summary

eg SEBI's sanction against insider trading.

Hence to thrive, decisions must be evaluated from view point of all stakeholders.

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