Statement - (II) : In this age of liberalisation and globalisation, the old dirty games and ethical conduct will no longer be accepted.
Ethical Statement Analysis
This section analyzes the validity of two statements regarding ethical decision-making in the current global context.
Statement (I) Validity
Statement (I) highlights the difficulty of ethical decision-making in a highly competitive ('dog-eat-dog') world, while advocating for fair conduct. This reflects the reality of modern competitive markets where ethical challenges are prevalent, but adherence to fairness is essential for sustainable operations and societal trust. Thus, Statement (I) is considered correct.
Statement (II) Validity
Statement (II) suggests that liberalization and globalization render unethical practices ('old dirty games') unacceptable. In an increasingly interconnected and transparent global economy, businesses face greater scrutiny from consumers, regulators, and the public. Unethical behavior can lead to severe reputational damage and loss of business, making it less viable. Therefore, Statement (II) is also considered correct.
Conclusion
Both statements accurately capture aspects of the modern business environment:
- Statement (I) addresses the competitive pressures versus the need for ethical conduct.
- Statement (II) addresses the declining acceptance of unethical practices due to globalization.
Since both statements are valid, the correct option is the one that affirms both.
Important Questions from Corporate governance and business ethics
Corporations are controlled and directed by which one of the following?
As per the Anglo-Saxon Model of Corporate Governance, the authority lies with the following. Arrange these in decreasing order of authority.
A. Board of Directors
B. Managers
C. Shareholders
D. Employees (Company)
E. Trade unions
Choose the correct sequence from the options given below
Assertion (A) : Corporate governance is an important instrument of investor protection.
Reason (R) : Strong corporate governance is indispensable to resilient and vibrant capital markets.
Which one of the following options is correct?
Which among the following is not a correct statement with regard to Corporate Governance in India ?
List out from the given statements the important ethical principles that a business should follow:
a) To take the necessary action for the development of the concerned industry or business.
b) Pay taxes and discharge other obligations promptly.
c) To ensure the best utilisation of the human resources.
d) Refrain from secret kickbacks or pay-offs to customers, suppliers, administrators, etc.
e) Ensure payment of fair wages and fair treatment of employees.
Choose the correct answer from the options given below:
