Ethical corporate governance refers to processes and policies deployed by a company or organisation to deal with the day-to-day businesses, ensure a balance between profit making and service delivery without venturing into unethical practices.
It is based on the principle of balance of equity, which recognizes that an organization’s responsibility extends beyond maximizing value for the shareholders. It considers the interests and rights of all stakeholders including the community as large and aims to ensure their fair treatment and consideration in decision-making processes.
In this context, following values play a central role in ensuring ethical corporate governance:

• Fairness: It means treating all the stakeholders without discrimination or favoritism. For instance, employees performing similar jobs/duties will be compensated equally while accounting factors such as experience, performance and tenure with the employer. It also means eliminating biases based on caste, colour, race etc. during hiring as well as during service.
• Transparency: Transparent and independent auditing of financial reports, business decisions and conducting business review benefits all stakeholders. It can also help cut costs associated with legal battles, foster better public relations and place the company as an attractive option to investors.
• Trust: A robust grievance redressal mechanism, safe work environment, valuing diversity can help build customer trust, boost labour productivity and promote a positive work environment. Trust is fostered through transparent working and delivering on commitments.
• Responsibility: Application of ethical values, such as transparency, accountability, compliance to laws related to corporate social responsibility, waste management etc., can ensure responsible and sustainable business development. It recognizes the duty and obligation to act in the best interest of all stakeholders.
• Integrity: Acting with integrity means being honest, ethical, and maintaining high moral principles. It involves being transparent in business dealings, maintaining consistency between words and actions, and adhering to ethical standards.
• Leadership: To be effective, company’s leaders must take responsibility for their decisions and the performance of the organization. The leader of a company should design and adhere to a code of ethics that helps management promote ethical corporate governance.

India has witnessed multiple corporate scams like Harshad Mehta Scandal, Satyam scam, and Sahara Scam. They highlight the need for stronger regulatory oversight, improved corporate governance, and increased accountability to detect and prevent such fraudulent activities.

This quote by Dr. B.R. Ambedkar highlights the underlying difference between eminent and great people. An eminent person is one who is well known and commands respect in the society owing to his/her proficiency and expertise in his/her field. Eminence can be achieved by excelling in certain fields, gaining knowledge, or developing breakthrough technology. For example, a scientist who has done a breakthrough research or invention can be referred to as an eminent personality.
However, becoming great is an arduous task. For this, one needs to champion the cause of humanity and be ready to serve the society beyond personal benefits or recognition. A great person need not be a master in his profession, but is virtuous. He/she is the one who devotes himself/herself for the betterment and well-being of others.
The significance and relevance of the quote can be further understood by following examples:

• Dedicated to betterment of society: Great personalities are needed who can devote themselves for the creation of a better society and future. Social reformers like Rajaram Mohan Roy, Ishwar Chand Vidyasagar worked relentlessly for the upliftment of women and making an equitable society.
• Spearheading the cause of downtrodden and marginalized: Individuals such as Jyotiba Phule, Savitri Bai Phule offered the best possible support and help for the cause of women education with limited resources. They were empathetic to the cause and dedicated themselves, which makes them great.
• For inclusive development: Dr. B.R. Ambedkar himself devoted his whole life against social evils such as untouchability, caste divide etc. He was a staunch supporter of equality of all and an advocate of Dalit rights.
• To lead at the time of crises: Societies or nations need a leader at the time of crises. Great personalities are also leaders needed by the society who serve as a harbinger of new ideas and instil hope in masses for change and betterment.
  • For example, Mahatma Gandhi took the leadership role during the Indian freedom struggle so that the country could free itself from foreign occupation and imperialism.

Thus, a great man is ready to serve the society for the greater good of the mankind. He is not concerned about the parochial view of self-benefit. When thoughts of I, me, myself transform to we, us and ours then a person becomesgreat. The civil services also require such people who are willing and able to sacrifice their personal interests for the larger public interests and help steer the society and the country towards a better future.

Emotional intelligence (EI) is the ability to understand, use, and manage one’s own emotions effectively, and to understand the emotions of others.
El enables leaders to achieve success in the following ways:

• Leaders with high El are better able to make sound decisions because they are aware of their own emotions, which can influence their judgment.
• Leaders with high El are better able to build strong relationships with their team members and stakeholders. For example, Vikram Sarabhai used emotional intelligence while engaging with his team members and led ISRO to new heights.
• Emotionally intelligent leaders are better able to motivate and inspire their team members. For example, M.S. Dhoni stayed calm and focused under pressure and led the Indian cricket team effectively.

However, in today’s interconnected world where people from different nations work together under the same organization, leaders need to go beyond emotional intelligence and cultivate cultural intelligence. Cultural intelligence signifies the ability to recognise and understand different cultures and the willingness to investigate the reasons why individuals belonging to different cultural backgrounds act the way they do. Cultivating cultural intelligence holds significance for leaders in the following ways:

• It enables leaders to improve communication by understanding the perspectives of employees and laying out their own ideas in a way that their employees will understand. For instance, Satya Nadella made it a priority and promoted initiatives to create a culture of inclusion and diversity at Microsoft.
• Leaders with cultural intelligence will focus on enhancing relationships with employees who belong to different parts of the world by connecting with them on a personal level and building trust and cooperation.
• It will lead to increased opportunities, as it ensures that a person can work with people from different cultures. It also helps leaders cope with diversity by broadening their perception and preventing them from showing biasness against employees from other countries.
• It will help establish an inclusive work culture and aid in peaceful conflict resolution, as culturally intelligent individuals are more likely to promote equality and respect human rights.

In today’s highly interconnected and globalised world, companies like Coca Cola, PepsiCo, General Motors, etc. cannot succeed if they do not understand diverse consumer preferences worldwide. Further, companies have to modify their products/services as per the cultural preferences in a nation. For instance, McDonald’s, a global food chain, does not serve beef and pork products in India out of respect for the local cultural sensitives. Imbibing cultural intelligence by leaders is not a recent phenomenon. Leaders like Nelson Mandela, Mahatma Gandhi, etc. demonstrated cultural intelligence by working towards bridging cultural divides in their respective countries. Cultural intelligence is a learnable skill just like any other and to cultivate it, one needs to be open-minded, carry out research on different cultures and be curious about learning and adopting new perspectives.