SHIKHAR MAINS 2022 - DAY 21 Model Answer English

Q1. कॉर्पोरेट गवर्नेंस की आवश्यकता पर प्रकाश डालते हुए इसके कार्यों और चुनौतियों पर चर्चा कीजिये?

Discuss need for Corporate Governance, its functions and challenges.

Approach:

·        Explain the concept of Corporate Governance in introduction.

·        Write the need of Corporate Governance in India.

·        Write down the functions, importance and challenges of corporate governance.

·        Conclude with reference to the significance of corporate governance in India.

Answer:

        Corporate Governance may be defined as a set of systems, processes and principles which ensure that a company is governed in the best interest of all stakeholders.

Fundamentals of Corporate Governance - Good Governance (Accountability, Transparency, Autonomy).

Need for Corporate Governance in India:

·        Lack of transparency and accountability in India is also found in the corporate world.

·        Non-availability of suitable provisions for enhancing the efficiency of the corporate.

·        Limited development of the private sector.

·        Prevalence of Crony capitalism.

·        Incorrect account information.

·        Large number of illegal companies (shell companies).

Functions of Corporate Governance:

·        Ethical Management of Corporate.

·        Determination of process and machinery based on the set targets.

·        Set Accountability and ensuring transparency in governance.

·        Protecting interests of all stakeholders.

·        To develop, protect and sustain corporate structures.

·        Development of credibility.

Importance of Corporate Governance:

·        Increases in corporate risk mitigation capability.

·        Corporate governance provides stability to the corporate during economic downturn.

·        Enhances organizational efficiency.

·        Simplifies merger and acquisition procedures.

·        Efficient and ethical corporate governance ensure foreign investment.

Challenges of Corporate Governance:

·        Corporate Fraud: balance sheet is not correct. E.g. Satyam scandal

·        Lack of investor confidence.

·        Increase in the number of economic fugitives.

·        There is a wide tolerance for corruption among the Indian people.

·        The corporate world does not voluntarily discharge responsibilities towards human values, such as lack of activism towards the environment.

·        Corporate in India takes steps contrary to ethics in the production of goods such as adulteration of goods.

While the corporate governance system has proved to be effective for the economy and in safeguarding the interest of the shareholders, we still need more efficient monitoring, transparent internal audit systems, efficient boards and management. Also, it can be helpful in promoting strategic management of emerging new companies and provide market stability.

Q2.  लोक सेवा के क्षेत्र मे नीतिशास्त्र की भूमिका  को स्पष्ट कीजिये?

 Explain the role of ethics in the field of public service?

 Approach:

•      In introduction very briefly write 2-3 lines about the role of Ethics.

•      Explain the role of ethics in the field of public service.

Answer:

            For public service, any public servant needs discretion as well as a high moral conduct. At times public servants have to face ethical dilemmas and take complex decisions.

 Role of Ethics in the field of Public Service:

• Ethics reduces the chances of misuse of discretionary powers vested in public servants.
• Ethics encourages a sense of responsibility in individuals/public servants.
• Ethics has special importance in developing self-accountability.
• Ethics proves helpful in maintaining smooth social relationship between individuals and between public and public servants.
• Ethics helps in developing the moral, ethical conduct of public servants/individuals.
• Ethics, social welfare, public interest, social interest encourages a protection and development.
• Ethics governs that aspect or dimension of behaviour of public servant or person which is not possible by formal law or rule of law.
• Ethics encourages efficiency and effectiveness in civil servants.
• Ethics strengthens the credibility of public servants in the eyes of society.
• Ethics makes the interaction between public servants and politicians more smooth.
• Through ethics, public servants have a special responsibility for the optimum use of public resources.
• Ethics creates a sense of leadership among individuals.

Therefore, ethics is helpful in providing a new direction along with integration in the society. It plays a cooperative role in maintaining social security and peace by providing a moral basis to human relations.