The milestones of corporate governance in the United States (U.S.), viz.., the stock market crash of 1929, which resulted in the Securities Act of 1933 and Securities Exchange Act of 1934 , the Foreign Corrupt Practice Act of 1977 and the Sarbanes Oxley Act of 2002 is explained in the foregoing. 1. The Stock Market Crash of 1929 and its Consequences The stock market crash of 1929 indicated the need for regulations promoting corporate governance practices and a regulatory body for securities markets.   1.1. The Stock Market Crash of 1929 The stock market crash of 1929, which occurred during the last week in October, was a series of days in which the stock market plummeted in a chain reaction, ruining many companies, banks, and investors. Its consequences affected American consumption, banking, and the economy in general (Erickson, 2007). The stock market crash, which had triggered the Great Depression, was the first event that catapulted a chain of events that influ...

  Sir Adrian Cadbury (1992) defined corporate governance as ‘the whole system of controls, both financial and otherwise, by which a company is directed and controlled’ The OECD (1999) defined it as ‘a set of relationships between a company’s board , its shareholders and other stakeholders. It also provides the structure through which the objectives of the company are set, and the means of attaining those objectives, and monitoring performance are determined’.   Corporate governance refers to control of corporations and to systems of accountability by those in control. It is about ensuring that executives and boards are accountable to shareholders while managing risks and enhancing competitiveness on a corporate and national level. The idea of corporate governance was originally developed in 1962 as a way of ensuring that investors receive a fair return on their investment by having a certain protection against management abuse or poor use of their investment capital (Arsal...

Transparency International is an international non -governmental organisation founded in  1993  based in  Berlin, Germany It is a non profit organization   to take action to  combat global Corruption with civil societal anti-corruption measures  and  to prevent criminal activities  arising from corruption. Its most notable publications include the  Global Corruption Barometer  and the  Corruption Perception Index. On January 28, 2021, Transparency International released its  2020 Corruption Perceptions Index (“CPI”) .   Transparency International  is an organization focused on stopping global corruption and promoting transparency, accountability, and integrity. Its CPI scores are used by companies and individuals worldwide as an indicator of the public’s perception of corruption in a given country. A CPI score ranges from 0-100 with zero indicating that a country is viewed as highly corrupt and one hundred in...

Part 1 has given us the relationship among Law, Ethics and Morality and also shed light on the Indian Ethos on Management /Work during ancient days. The Part 2 takes  through Independent India through its modernisation efforts. The Constitution of India (the “Constitution”) is the cornerstone of individual rights and liberties, and also providesthe basic framework within which all lawsin India, including lawsrelating to labour and employment, must operate. The Constitution guarantees certain fundamental rights to individuals such as the right to life, privacy, equality before the law and prohibition of discrimination in public education and employment on the basis of religion, sect, gender and caste. The Constitution recognizes ‘right to livelihood’ as an integral part of the fundamental right to life. In addition tofundamental rights, the Constitution also envisages certain ‘directiveprinciples ’ which serve as a guide to the legislature towards fulfilling social and economic go...

  Ethics  is the  moral  principles that govern a person's behavior or the conducting of an activity.  Morals  are concerned with the principles of right and wrong behavior and the goodness or badness of human character. ...  Law  governs society as a whole, often dealing with interactions between total strangers. Look at this example -‘A Jain eats onions ’. A moral tenet of Jainism forbids such eating, but since this behaviour of an individual does not affect any other person, it is ethically neutral. Fortunately, no law exists (in India) making eating onions a punishable moral tenet. Consider ‘stealing’: this action is morally, ethically and legally wrong. Ancient Indian philosophers did not neglect the social, the economic, and the emotional aspects of life. A careful study of ancient Indian history would reveal that this country was materially progressive and economically sound. Speaking of prosperity of India in ancient times, Indians knew ho...