Questions
Q1. (a) What do you understand by ‘moral integrity’ and ‘professional efficiency’ in the context of corporate governance of India? Illustrate with suitable examples. (10)
(b) “International aid” is an accepted form of helping ‘resource challenged’ nations. Comment on ‘ethics in contemporary international aid.’ Support your answer with suitable examples. (10)
Model Solutions
Q1. (a) What do you understand by ‘moral integrity’ and ‘professional efficiency’ in the context of corporate governance of India? Illustrate with suitable examples. (10)
Introduction:
- Define corporate governance-
- Corporate governance is the system by which companies are directed and controlled.
- It is about promoting corporate fairness, transparency and accountability.
Main Body:
Moral integrity in the context of corporate governance
- Moral integrity refers to the adherence to ethical and moral principles, values, and standards in all aspects of corporate decision-making and conduct. For eg: Chanda Kochhar, the former CEO of ICICI Bank, is an example that shows how being too greedy in the business world can lead to problems.
- It involves doing what is right, just, and fair, even when faced with challenges or temptations to compromise on ethical principles. For eg: During covid many companies retained their employees despite losses helped in rebuilding it after lockdown.
- Transparency and accountability, necessary to achieve economic and social goals. For eg: Implementing RTI and whistleblower acts
- Build an environment of trust- For eg: Present mass layoffs shows employees being used as Means to achieve the ends (Profit)
Professional efficiency in the context of corporate governance
- Professional efficiency involves the effective and competent management of resources, processes, and operations within a corporate entity.
- It focuses on achieving organisational goals and objectives efficiently, which often includes maximising profitability and shareholder value
- Competency and meritocracy over nepotism- For eg: Tata group
Conclusion:
- You can conclude by mentioning Uday Kotak Committee on corporate governance
Or - On the lines of compassionate capitalism
- Nation needs to embrace compassionate capitalism: Narayana Murthy
(b) “International aid” is an accepted form of helping ‘resource challenged’ nations. Comment on ‘ethics in contemporary international aid.’ Support your answer with suitable examples. (10)
Introduction
- International aid means the transfer of money, goods or technical knowledge, from the developed to the under-developed countries.
- Such aids come in the form of FDI, grants, donations from people, religious, political or business organisations.
- Some recent examples: International aid pours in for earthquake stricken Morocco, flood hit Libya
Main Body
Ethical dimensions to consider in international aid
- Sovereignty: Conditionalities affect the free will of the country- compromised sovereignty. For eg: In the Syrian conflict, international humanitarian agencies ran Cash for Work programs to help local communities but didn't respect Syria's government sovereignty
- Cultural Sensitivity: Country faces propaganda and vested interest and the proliferation of Monoculturalism.
- Lack of compassion in the name of aid and its driven by broader strategic interests for eg: U.S. aid to Pakistan for counterterrorism efforts.
- Conflict of interest of donor and donee
- Utilisation of funds- Lack of proper utilisation of funds due to corruption for eg: only 1% fund reach the needy population; seen in Ebola crisis of in west africa
- Economic exploitation: World Bank and IMF Grants come with large conditions like Opening markets for the world. This is called neo-colonialism by many experts.
- Local Empowerment- Development of Dependency culture on foreign aid
- Environmental dimensions - clean energy transfer should be aim but many aids are given to escape compliance mechanism
Conclusion
- Greater transparency, less conditions and ethical behaviour in international fund transfer can realise the potential of country
- International aid should keep the vision of “a more peaceful, prosperous and just world” enshrined in the United Nations Millennium Development Goals (MDGs)
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