2023 · GS Paper 4 · Q1(a) · 10 marks
What do you understand by 'moral integrity' and 'professional efficiency' in the context of corporate governance in India? Illustrate with suitable examples.
In short
Moral integrity in corporate governance means honest disclosure, fairness to shareholders and freedom from conflicts of interest, while professional efficiency means competent use of capital, people and risk systems, and both are needed together. Satyam's 2009 fraud of about ₹7,000 crore showed apparent efficiency without integrity collapsing.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 290 words
Meaning
Moral integrity is the alignment of conduct with stated values: honest disclosure, fairness to minority shareholders and no conflicts of interest, in the spirit of Gandhi's trusteeship.
Integrity upheld
Infosys under N.R. Narayana Murthy set an early benchmark for voluntary disclosure beyond what the law required.
Integrity breached
Satyam's 2009 accounting fraud of about ₹7,000 crore and the Videocon loan conflict of interest at ICICI Bank (2018) show how Board Capture lets wrongdoing pass.
Meaning
Professional efficiency is the competent use of capital, people and risk systems through a skilled, independent board and accurate reporting.
Efficiency failing
The IL&FS default of 2018, with debt of over ₹90,000 crore built on an unchecked asset-liability mismatch, shook India's credit markets.
Building efficiency
The Kotak Committee (2017) recommended stronger board independence and separating the chairperson and managing director roles in large listed firms, much of which SEBI adopted in 2018, though the chair-MD split was later made voluntary.
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This chapter in the exam
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Question from the official UPSC Civil Services (Main) Examination 2023 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.