Published on 25 Nov 2025
Consumer Protection and Fair Competition: It protects consumers from fraudulent or unethical practices and prevents monopolies or anti-competitive behavior that can harm the market’s integrity.
Example: The Competition Commission of India’s enforcement actions against anti-competitive practices underscore ethical governance’s role in ensuring fair competition.
Corporate Responsibility: It promotes corporate social responsibility (CSR) and sustainable business practices, reducing harm to the environment and society while maintaining long-term economic sustainability.
Example: Tata Steel in India is committed to reduce their carbon footprint and have initiated afforestation projects ethical governance aligns with environmental sustainability.
Transparency and Disclosure: It ensures that investors and stakeholders have access to accurate and timely information, reducing the risk of market manipulation or insider trading.
Example: SEBI and the Ministry of Corporate Affairs have established stringent regulations that compel traded companies to provide detailed financial statements.
Worker Rights and Labor Standards: It prevents exploitation, child labor, and unsafe working conditions, ensuring that employees are treated ethically and with dignity.
Example: In the textile industry in India, the Ethical Trading Initiative (ETI) works to ensure that labor standards are upheld throughout the supply chain.
Regulatory Oversight: Ethical governance hinges on rigorous regulatory oversight and enforcement, ensuring that businesses and financial institutions face consequences for unethical actions.
Example: RBI’s ethical governance practices include stringent regulatory oversight and swift actions against unethical financial practices to protect the interests of depositors and investors.
Ethics, Integrity and Aptitude
Need for Ethical governance in market economy
Ethical governance
market economy
General Studies Paper 4
Public Service Values
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