Corporate ethical responsibility

Abstract

Every crisis has lessons and these lessons if learnt, can lead to a better state of affairs. Amidst all the criticism of the relationship between corporates and the government , amidst the accusations of policy paralysis, some aspects stand out, pointing to ways in which a responsible government can act. While failure of public sector corporations is always handled with a bailout, private sector corporations are usually allowed to die unless such cases can cause a larger systemic risk. The only sector that has got the benefit of a benevolent administration across the world is the financial sector, because the collateral damage of a big bank failing is too difficult to contain. In India, we have managed bank failures fairly well, be it Global Trust Bank or the urban co-operative banks in the wake of the Ketan Parekh scam. https://www.businesstoday.in/magazine/columns/prof.-m.s.-sriram-on-corporate-governance-in-india/story/190808.html