Business Ethics In Indian Corporate Law

Anubhav Rana, Fairfield Institute of Management and Technology

ABSTRACT

The intricate relationship between business and society forms a foundation for mutual dependence. As businesses operate within a societal context, they rely on essential resources like land, labor, and capital while simultaneously contributing to societal development through products, employment generation, and innovations. Balancing the pursuit of profit with societal needs is a delicate task acknowledged as ethically imperative. Business ethics, a domain within philosophy, guides the formulation of ethical standards in the business realm. Corporate governance, a globally recognized set of standards, aims to foster ethical behaviour, transparency, and accountability in business operations, safeguarding the interests of various stakeholders.

India, with one of the most rigorous corporate governance frameworks globally, has implemented legislative reforms such as the Companies Act 2013 and the Insolvency and Bankruptcy Code 2016. Despite these measures, instances of corporate fraud and banking scams persist, revealing lapses in governance structures. The government and regulatory authorities have made commendable efforts, including the Fugitive Economic Criminals Act 2018, to apprehend economic offenders, emphasizing the need for ethical frameworks.

In navigating the ethical landscape in India, businesses face challenges such as corruption, lack of transparency, and conflicts of interest. Implementing anti- corruption policies, conducting regular audits, and fostering a culture of transparency are proactive measures to address these challenges. The complexities of the Indian market present opportunities for positive change, urging businesses to adopt a comprehensive and ethical approach, ultimately contributing to the development of a trustworthy and accountable corporate culture.

Keywords: Business Ethics, Corporate Governance, Compliance Standards, Corporate Fraud