Corporate Governance and CSR: Principles, Committees, Ethics and CSR Basics Questions

Question 1

Define corporate governance.

Accepted Answer

Corporate governance is the system of **direction and control** of a company to ensure accountability and transparency (concept).

Question 2

State one principle of good corporate governance.

Accepted Answer

**Transparency** (or accountability/fairness) (concept).

Question 3

What is CSR?

Accepted Answer

CSR (**Corporate Social Responsibility**) is a company’s commitment to responsible business conduct benefiting society and the environment (concept).

Question 4

Name any one corporate governance committee (concept).

Accepted Answer

**Audit committee** (or CSR committee / nomination & remuneration committee) (concept).

Question 5

Ethics means doing the right thing beyond mere legal compliance. (True/False)

Accepted Answer

True. **Ethics** focuses on right conduct beyond minimum legal requirements.

Question 6

State one objective/benefit of CSR (concept).

Accepted Answer

CSR supports **sustainable development** and improves stakeholder relationships/reputation (concept).

Question 7

List any three principles of good corporate governance.

Accepted Answer

Any three principles:

- **Accountability**
- **Transparency**
- **Fairness/Equity** (including minority protection)
- Responsibility/compliance (concept)
- Integrity (avoid conflicts)

Any three with brief meaning are acceptable.

Question 8

Explain accountability and transparency in corporate governance (brief) using a table.

Accepted Answer

Accountability vs transparency:

| Principle | Meaning |
|---|---|
| **Accountability** | decision-makers are answerable for outcomes |
| **Transparency** | timely, clear and truthful disclosure of information |

Together they reduce misconduct and improve stakeholder trust.

Question 9

Differentiate CSR and philanthropy using a table (any three points).

Accepted Answer

CSR vs philanthropy:

| Basis | **CSR** | Philanthropy |
|---|---|---|
| Approach | planned, strategic | ad-hoc donations |
| Integration | linked to business sustainability | usually separate |
| Measurement | impact monitoring + reporting | limited measurement |

Thus, CSR is systematic; philanthropy is mainly charitable giving.

Question 10

List any three common board committees and state their role (concept) using a table.

Accepted Answer

Committees and role (concept):

| Committee | Role |
|---|---|
| **Audit committee** | financial reporting + internal controls |
| Nomination/Remuneration | appointments and pay alignment |
| CSR committee | plan/monitor CSR initiatives |
| Stakeholder/Grievance | resolve stakeholder complaints |

Any three committees can be written.

Question 11

Explain corporate governance: meaning, principles and importance (exam-style) with a table and conclusion.

Accepted Answer

### Meaning
**Corporate governance** is the system of rules and processes by which a company is directed and controlled (concept).

### Principles (table)
| Principle | What it ensures |
|---|---|
| **Transparency** | truthful disclosures |
| **Accountability** | answerability of decision-makers |
| **Fairness** | equitable treatment incl. minority |

### Importance
- reduces fraud and conflicts of interest
- improves investor confidence and access to capital (concept)
- strengthens compliance and performance

### Conclusion
Good governance builds trust and ensures sustainable value creation while protecting stakeholders.

Question 12

Write an exam-style CSR note: meaning, objectives and CSR implementation cycle (flowchart) with conclusion.

Accepted Answer

### Meaning
**CSR** is responsible business conduct contributing to social and environmental well-being (concept).

### Objectives
- **sustainable development**
- community welfare (education/health/environment) (concept)
- stronger stakeholder trust and reputation

### CSR cycle (flowchart)
Need identification → Project selection → Budget & responsibility → Implementation → Monitoring → Impact measurement → Reporting → Improvement

### Conclusion
A planned CSR cycle ensures accountability, measurable impact, and long-term sustainability for the company and society.

Question 13

Explain ethics in corporate governance with examples and a table (exam-style) and conclude.

Accepted Answer

### Meaning
**Ethics** means right conduct beyond legal compliance.

### Examples (concept)
- avoiding **conflicts of interest**
- truthful reporting (no manipulation)
- protecting whistle-blowers (concept)

| Ethical practice | Benefit |
|---|---|
| **Integrity** in reporting | higher trust, lower fraud |
| Fair treatment | stronger stakeholder relations |
| Compliance culture | fewer penalties and disputes |

### Conclusion
Ethical governance prevents misconduct and strengthens transparency, credibility and long-term sustainability.

Question 14

Draw a simple governance framework flow (shareholders–board–management–controls–reporting) and explain briefly.

Accepted Answer

Governance framework (flow):

Shareholders’ oversight → Board direction → Management execution → Controls + **Audit** → Disclosures/Reporting → Stakeholder trust

Briefly, the flow shows how oversight and controls ensure accountability and transparency from decision-making to reporting.

Question 15

Explain the role of an audit committee in corporate governance (any three points) using a table.

Accepted Answer

Role of **audit committee** (any three) (concept):

| Area | Role |
|---|---|
| Financial reporting | review statements and disclosures |
| Internal controls | oversee control systems and risk checks |
| Audit oversight | coordinate with auditors and follow-up issues |

Thus, the audit committee strengthens transparency and reduces financial reporting risk.

Corporate Governance and CSR: Principles, Committees, Ethics and CSR Basics

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