Q1a. What do you understand by “moral integrity” and “professional efficiency" in the context of corporate governance in India? Illustrate with suitable examples.
Model Answer:
Introduction
Moral Integrity refers to adherence to ethical principles, honesty, and fairness in one's conduct, ensuring actions align with moral values.
Professional Efficiency is the ability to perform tasks effectively and competently in a professional setting, focusing on achieving organisational goals.
Significance of Moral Integrity Corporate Governance:
- Transparency and Trust: Ethical practices reduce corruption and build trust among stakeholders.
- Sustainability: Long-term growth is driven by leadership that prioritizes ethical business practices over short-term gains.
- Reputation Protection: Avoids scandals that could tarnish a company’s credibility.
- Example: Tata Group has long been committed to social responsibility through initiatives like education and healthcare. His leadership during crises, like the 2008 terror attacks in Mumbai, showcased his commitment to corporate integrity and the well-being of his employees.
Significance of Professional Efficiency in Corporate Governance:
- Competent Decision-Making: Enables timely and effective solutions to complex problems.
- Resource Optimization: Enhances productivity and reduces wastage, ensuring economic and operational sustainability.
- Competitiveness: Keeps organizations dynamic and resilient in a rapidly changing environment.
- Example: Dr. Verghese Kurien, known as the architect of the White Revolution, founded Amul, which is now the world’s largest cooperative dairy. His professional efficiency is reflected in how he transformed the dairy industry, leading to India’s self-sufficiency in milk production, and improving rural economies.
Conclusion
In the corporate landscape, moral integrity and professional efficiency are pillars of sound corporate governance. As the former ensures an ethical foundation, the latter drives effective execution. Together, they create a robust framework for sustained organizational success, stakeholder trust, and societal benefit.
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