FOSTERING CORPORATE INTEGRITY: ANALYZING THE NEXUS BETWEEN CORPORATE GOVERNANCE, CSR, AND REGULATORY REFORMS IN INDIA

AUTHOR – ARCHAK DAS, STUDENT AT ADAMAS UNIVERSITY

BEST CITATION – ARCHAK DAS, FOSTERING CORPORATE INTEGRITY: ANALYZING THE NEXUS BETWEEN CORPORATE GOVERNANCE, CSR, AND REGULATORY REFORMS IN INDIA, ILE INTELLECTUAL PROPERTY AND CORPORATE LAW REVIEW, 3 (1) OF 2024, PG. 42-49, APIS – 3920 – 0008 | ISSN – 2583–6153.

Abstract

In the realm of corporate governance, the distinction between legal and ethical compliance mechanisms underlines a critical debate regarding their effectiveness in restoring confidence and building trust within corporations where this paper argues that while legal compliance mechanisms serve as necessary frameworks for regulatory adherence, they often fall short in addressing deeper moral concerns and fostering a culture of ethical behaviour. The overemphasis on legal compliance may lead to the misconception that “accountability” can substitute for “responsibility,” and may even risk the futile attempt to legislate morality and drawing from a virtue ethics perspective, particularly focusing on the cardinal virtues, this paper explores the role of moral principles in governance. This research paper delves further into the critical importance of robust corporate governance and corporate social responsibility (CSR) practices in India, especially in light of notable scandals like Satyam and IL&FS where it examines how these scandals have shown the need for transparency, sustainability, and investor protection. Through a thorough review of scholarly literature, regulatory documents, and case studies, it explores systemic deficiencies in governance, risk management, and ethics within Indian corporations that contributed to these scandals, highlighting legislative changes, such as the Companies Act, 2013, and regulatory interventions by bodies like SEBI and RBI, aimed at enhancing transparency and accountability. It also analyzes CSR’s role in fostering ethical behaviour and stakeholder engagement, stressing the importance of embedding CSR principles into corporate strategies, emphasizing on the collective responsibility of stakeholders, including boards, civil society, investors, and consumers, in driving positive change and holding corporations accountable.

Keywords- Corporate governance, Ethical compliance, Corporate Social Responsibility