ETHICS · ETHICS · Chapter 13

Corporate Governance and Ethical Dimension

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Ethics in Banking — Ethics in Banking.

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Q

Define corporate governance per World Bank.

A

System by which companies are directed and controlled with accountability, efficiency and transparency.

Q

What is ethics in corporate context per Thomas Garrett?

A

Science of judging human ends and art of controlling means to serve human needs.

Q

Why is governance critical for banks specifically?

A

Banks are leveraged, public-trust institutions; governance lapses shake entire financial system.

Q

What is the relationship between ethics and corporate governance?

A

Together produce responsible, sustainable, profitable banking; separately inadequate.

Q

What triggered Sarbanes-Oxley Act 2002?

A

Enron's systematic accounting fraud using special-purpose entities to hide debt and inflate profits.

Q

What was Enron's share price collapse timeline?

A

From USD 90.75 mid-2000 to less than USD 1 by November 2001; bankruptcy December 2.

Q

Define wilful defaulter concept per Kingfisher case.

A

Promoter defaulted on debt obligations; ₹4,300 crore exposure became NPA; promoter became proclaimed offender.

Q

What fraud did Satyam Computer Services confess to?

A

Multi-year fraud: fictitious bank balances, inflated revenue, fictitious interest income totalling ₹7,000 crore.

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