Question

Can companies act ethically or is there a need for greater governance beyond internal committees. Or do we require a higher level form of governance. Can social application companies govern themselves or does this require the government to intervene?

Answer 1

Now-a-days, companies are more or less enacting within their ethical boundaries. Over above companies enactment, Companies Law or Corporate Law governs the companies ethical actions. Any company formed within the boundaries of India should bind and govern with the Indian Companies Act whereas in case of companies formed within the boundaries of US should bind and govern within the US Corporate Law.

Companies formed Internal committees that are more specifically focused on the companies privacy and it's ethical code of conduct. It will lead to non-exploitation of people as well as an environment and will create a healthy competition and growth in the nation as well as in the company in terms of it's scale of operations and profitability.

In terms of social application, government has already implemented Corporate Social Responsibility (CSR) as an ethical code of conduct and every company has to follow that. On a high level, CSR means that if a company earns profit in an year that it also has some welfare obligation towards society.

All the laws and regulations are already in place whether in terms of governing companies ethical code of conducts or governing companies CSR.