Ethics-12

1.Corporate Governance
2.Ethical issues in International
Relations
Manindra
 Linkages
1. Corp. Gov.- need and objectives.
2. Corp. Gov.- Stakeholders & Structure.
3. Need for Ethical considerations in IR.
4. Realism v/s Liberalism.
Manindra
5. Principles for securing values in IR.
 Need for Corp. Gov.
• Role of govt. changing - FACILITATOR.
• Gap created by exit of govt. is filled by private
corporations.
• Public Welfare-responsibility of Govt+ Pvt
sector.
Manindra
• Corporate Governance:
- establish balance between economic &
social goals of corporation.
- enable corporations to create wealth legally
& ethically.
 Profitabl
e
Manindra

Ethical Legal
 The Stakeholders
1. Shareholders
2. Management
3. Board of Directors Manindra
4. Auditors
 Corporate Gov. Structure

Appoint
BOARD
SHAREHOLDE
of
R
DIRECTORS
Report

Appoint Report Appoint

Manindra
Report

MANAGEMEN AUDITOR
T Inspect
 The Stakeholders
STAKEHOLDER RELEVANCE CONCERN
Shareholders Owners of company Small v/s Large shareholders
Money + Trust

Management Vision & guidance Encourage ethical conduct.

in daily affairs ( Tax evasion, Insider trading,
Gender discrimination)
Manindra
Board of Long-term vision Expertise + Impartiality
Directors Executive v/s Non-Ex.
Director

Auditors Inspect & report Independent of undue

financial health of influence
co. (dis-proportionate voting
 Four Pillars of Corp. Gov.

1. Accountability Ensure that Mgmt. is accountable to BOD &

BOD is accountable to shareholders.
2. Fairness Ensure that all shareholders, including
small investors, are treated equitably.
3. Transparency Manindra
Ensure timely + accurate disclosure on
financial situation of company, ownership
and corporate governance measures.
4. Independence Ensure that BOD & Auditors are free from
any undue influence by establishing
procedures that minimize any potential
conflicts of interest.
Strengthening Corp. Gov. in India
1. Clause 49 (Listing Agreement-SEBI)
2. Companies Act 2013

Manindra
 Clause 49- SEBI
Mandatory Requirements:
1. Composition of BOD
- Independent Directors + One Woman
Director.
2. Code of Conduct for BOD. Manindra
3. Whistleblower Protection Mechanism.
4. Audit Committee.
5. Annual Report shall specifically highlight the
extent to which non-mandatory
requirements have been adopted.
 Corp. Social Responsibility
• Corp. Gov. is itself a part of CSR.
CSR

Corp.
Gov
CSR is a broader concept: Manindra
i. social concerns +public welfare programs.
ii. Philanthropic activities + social service.
iii. Supplementing the govt’s efforts.
iv. Environmental preservation.
 Ethical issues
in
Manindra
International Relations
 Need for Ethics in IR
• Inter-connected world; issues not restricted
to national boundaries.
• Harmony b/w National and International
aspirations.
Manindra
• National Interest = Intl. Peace.
• Sovereignty of nation cannot be
compromised.
 UN Declaration (1970)
i. Sovereign equality of all nations.
ii. Right of self-determination.
iii.Prohibition of use of force.
iv. Non-interference in domestic Manindra
affairs
of other nations.
v. Duty to cooperate with other nations.
 Two Theories
1. Realism:
- Self-interest takes precedence over ethics.
- Ends justify the means; opportunism.
- Sole aim is advancement of national
interest.

2. Liberalism: Manindra
- Mutual cooperation; less conflict.
i. International institutions and law.
ii. International trade.
iii. Spread of democracy.
 International Issues and Realism
ISSUE RESPONSE PROBLEM
Climate Change - Secondary issue - Superficial
- Relative gains efforts
problem - Short-term
Migrants/ - Deny+ border - Polarisation
Refugees control - Aggravates
- Security risks problem
- Strain on
Manindra
resources
Military - Hegemony; Arms - Open conflict
Intervention/ race - Regime change
- “Garb of morality”
WMD’s
Funding/Aid - Attach - Opportunism
conditionalities
- Create
 Limitations of Realism
LIMITATION EXAMPLE

1. Material issues > - Collateral damage in drone

Aesthetic issues strikes
- Women in conflict zones
2. Myopic - Denying refuge to migrants
Manindra
decisions - Border control
3. Zero-sum game - Arms race

4. Opportunism - Aid with conditionalities

- Search for WMDs; regime
change
5. Relative gains - Climate change
 International Issues and Liberalism
ISSUE RESPONSE BENEFIT
Climate Change - Mutual cooperation - Absolute gains
- Common,
Differentiated Resp.

Migrants/ - Allow entry - Ethical/

Refugees - Equal, not identical, Altruistic
treatment - Humanitarian
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Military - Info. sharing, - Peaceful
Intervention/ dialogue coexistence
- NEW START
WMD’s
Funding/Aid - No conditions - Consistency
- Enabling nature

Human Rights - Treat humans as - Humanitarian

ends
 Three Principles
PRINCIPLE ADVANTAGE DRAWBACK

DOMINANC Stability Resentment

E Predictability Conflict

RECIPROCI Incentivizes Manindra

Assessment
TY cooperation Negative
dimension
IDENTITY Larger community Character
Sacrifice of self- Socio-eco
interest indicators
 Ethical Issues in IR
ISSUE ETHICAL PRINCIPLE
DIMENSION
SECURITY Military Intervention Dominance (UNSC; USA)

Human Rights Identity (India- pol.

asylum)
Disarmament Dominance (USA-Russia)
Manindra
INTL. TRADE Self-interest v/s Reciprocity (MFN Status)
Resp.

ENVIRONMEN Common Resp. Dominance (USA, China)

T