Topic: 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.
7. Companies adhering to the norms of corporate governance emerge as winners in the long run. Evaluate with the help of suitable examples. (250 words)
Reference: Ethics, Integrity and Aptitude by Lexicon Publications
Why the question:
The question is from the static portions of GS paper IV, theme corporate Governance.
Key Demand of the question:
With the help of examples one must illustrate the importance of adhering to corporate governance for companies and how it aids them in long run.
Evaluate – When you are asked to evaluate, you have to pass a sound judgement about the truth of the given statement in the question or the topic based on evidences. You have to appraise the worth of the statement in question. There is scope for forming a personal opinion here.
Structure of the answer:
Start with the definition of corporate governance.
Discuss why companies need corporate governance? – The purpose of corporate governance is to facilitate effective, entrepreneurial and prudent management that can deliver the long-term success of the company.
Give reasons with examples why such companies emerge as winners in the long run.
Justify with examples how companies ignoring corporate governance do not sustain in the long run.
Conclude appropriately based on the above points.