TOPIC: Probity in Governance: Concept of public service; Philosophical basis of governance and probity; Information sharing and transparency in government, Right to Information, Codes of Ethics, Codes of Conduct, Citizen’s Charters, Work culture, Quality of service delivery, Utilization of public funds, challenges of corruption.
7) The effectiveness of corporate governance has become a global concern, Do you agree? Critically analyse with suitable illustrations. (250 words)
Why this question:
The article explains that the questions of corporate governance must be urgently addressed in the interest of investors, and also the larger economy.
Key demand of the question:
One has to bring out the current case of Infosys and the corporate governance crisis the company is facing and suggest solutions to address such issues for the overall health of the economy.
Critically analyze – When asked to analyse, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a fair judgment.
Structure of the answer:
In brief narrate the Infosys case study.
Discuss first the concept of corporate governance.
Corporate governance is a concept which revolves around the appropriate management and control of a company.
It includes the rules relating to the power relations between owners, the board of directors, management and the stakeholders such as employees, suppliers, customers as well as the public at large.
Sustained growth of any organization requires the cooperation of all stakeholders, which requires adherence to the best corporate governance practices.
In this regard, the management needs to act as trustees of the shareholders at large and prevent asymmetry of benefits between various sections of shareholders, especially between the owner-managers and the rest of the shareholders.
Conclude with way ahead.