Question 1(a) · 10 marks · 145 words written
Opening
Corporate ethics are governed by the values of 3Ps - People, Planet, profitability.
Body · points and prose
- A Venn diagram with three intersecting circles labelled People, Planet, and Profit.
- The intersection of all three is labelled "Corporate ethics."
Need for ESG metrics
- Current corporate governance has social issues as -
- Using man as means
- Eg: Hire & fire culture
- No responsibility to society
- Eg: Punjab Maharashtra Bank fraud.
- Governance issues
- Money as ends in itself
- Eg: ICICI Bank fraud, Yes Bank.
- Stifling level play field via monopoly. Eg: Google fined 1330 crore.
- Environmental Issues
- Exploitation of environment.
- Eg: Kanpur tanneries - chromium pollution in Ganga.
All this calls for multistakeholder approach as
- Environment as equal stakeholder
- → Eg: polluter pays principle (Plastics)
- Society as stakeholder
- → Eg: Tata MANSI proposal
- → improve IMR, MMR
- Corporate social responsibility reforms → make more targetted.
Benefits from this:
- uphold corporate citizenship
- uphold Gandhian trusteeship
- commerce with morality
- Benefits → social capital
- ecocentricism → sustainable growth & profit
Close
This would make the Corporates lead to [compassionate capitalism]