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.