Course: Business: Ethics, Governance & Risk

Internal Assignment Applicable for June 2024 Examination

Q1. “Business should provide goods and services in a manner that is sustainable and safe.” Prepare an executive
summary (in your own words) to showcase how the company is delivering on this Principle 2 of the National
Guidelines on Responsible Business Conduct (NGRBC) from the Business Responsibility & Sustainability Report –
2022-23 (BRSR) of a company of your choice. Choose any ONE listed company from the BSE/NSE list of top 100
companies by market capitalization. You must mention the name of the selected company and include the
weblink to its BRSR. (You may also refer to the company website or its sustainability report for additional
information on this principle and its indicators.
Ans1.- Introduction-
Reliance Industries restrained (RIL) stands as a beacon of company responsibility and sustainability
in India's enterprise landscape. As one of the top corporations indexed on both the Bombay inventory
exchange (BSE) and the national inventory trade (NSE), RIL has garnered no longer simplest monetary
fulfillment but additionally reputation for its unwavering commitment to responsible commercial
enterprise conduct.
Principle 2 of the national suggestions on responsible business behavior (NGRBC) emphasizes
the significance of supplying goods and services in a manner that is sustainable and secure, a
principle deeply ingrained in RIL's company ethos. The business obligation & Sustainability
document (BRSR) for 2022-23 offers insights into RIL's efforts on this domain, reflecting its
determination to sustainable practices and making sure the protection of its operations. This executive
summary will delve into RIL's initiatives and practices, dropping light on how the agency has
been fulfilling this critical precept.

Concepts and applications-

Reliance Industries limited (RIL), a stalwart in India's company landscape and one of the top
groups listed on each the Bombay inventory change (BSE) and the national stock alternate
(NSE), has been at the forefront of handing over items and services in a sustainable and secure
way, as mentioned in precept 2 of the country wide suggestions on accountable business behavior
(NGRBC). The commercial enterprise responsibility & Sustainability file (BRSR) for 2022-23 provides
complete insights into RIL's initiatives and practices on this area, reflecting its
dedication to responsible enterprise behavior.
To apprehend how RIL fulfills this principle, it's far important to explore its sustainability tasks
and protection measures across diverse sides of its operations:

Sustainable supply chain Management-

RIL locations full-size emphasis on sustainable deliver chain control to make certain that its
procurement methods are aligned with moral, environmental, and social considerations.
through its sturdy supplier engagement programs, RIL works intently with its companions to sell
sustainability practices, consisting of accountable sourcing of uncooked substances, moral hard
work practices, and environmental conservation efforts. through integrating
sustainability criteria into provider selection and assessment procedures, RIL guarantees that its supply chain
adheres to the best standards of accountable behavior, consequently contributing to the general sustainability
of its operations.

Environmental Stewardship-
As a responsible company citizen, RIL is devoted to minimizing its environmental footprint
and mitigating the unfavorable affects of its operations at the environment. through investments in cutting
edge technology, generation, process optimization, and renewable energy projects, RIL
constantly seeks to enhance the performance of its operations at the same time as reducing aid
consumption and greenhouse gas emissions. Additionally, RIL actively engages in environmental
conservation efforts, together with a forestation tasks, waste control initiatives, and water
 conservation applications, to safeguard herbal ecosystems and promote sustainable improvement in
the groups where it operates.

Occupational Health and Safety-

Making sure the protection and properly-being of its employees and stakeholders is a top priority for RIL.
The agency continues stringent occupational health and protection standards throughout all its centers,
adhering to regulatory necessities and international fine practices. Through comprehensive chance
evaluation techniques, normal safety audits, and worker education packages, RIL fosters a tradition
of protection cognizance and responsibility inside its team of workers. Moreover, RIL leverages
advanced generation and automation solutions to enhance place of work safety and reduce the hazard
of accidents or incidents, accordingly safeguarding the fitness and livelihoods of its personnel.

Product Quality and Safety-

RIL is committed to delivering services and products that meet the highest requirements
of safety and reliability. From petrochemicals to retail, RIL operates throughout various sectors, every
requiring stringent best manage measures to ensure patron satisfaction and regulatory
compliance. Through rigorous testing, certification, and best assurance procedures, RIL guarantees
that its products adhere to relevant protection requirements and guidelines, thereby minimizing the danger
of damage to consumers and the environment. Additionally, RIL invests in research and
development to innovate sustainable product solutions that deal with rising societal challenges
whilst upholding its commitment to moral commercial enterprise practices.

Community Engagement and Stakeholder Dialogue-

RIL recognizes the significance of engaging with stakeholders and fostering transparent dialogue
to address sustainability demanding situations correctly. through its community development tasks,
RIL actively collaborates with nearby communities, NGOs, government organizations, and enterprise
companions to identify shared sustainability dreams and put in force collaborative answers. by means
of listeningto stakeholder remarks, addressing worries, and incorporating diverse perspectives into its
choice-making procedures, RIL strengthens trust and fosters mutually useful relationships,
therefore contributing to the long-term sustainability of its business operations.
Reliance Industries limited exemplifies a holistic method to accountable business conduct,
integrating sustainability and protection concerns into its middle commercial enterprise strategy and
operations. Through its unwavering dedication to sustainable supply chain control, environmental
stewardship, occupational fitness and safety, product great and safety, and stakeholder
engagement, RIL units a benchmark for ethical management and company citizenship in the Indian
enterprise panorama. As RIL keeps to evolve and innovate, its steadfast adherence to precept
2 of the NGRBC underscores its determination to growing value now not only for
shareholders however additionally for society and the planet at large.

Conclusion-
In end, Reliance Industries constrained has consistently verified its dedication to
sustainable and secure commercial enterprise practices, aligning with precept 2 of the national hints on
accountable commercial enterprise conduct. Through robust tasks, progressive processes, and stringent
safety measures, RIL has not simplest brought items and services but has executed so in a way that
minimizes environmental impact and prioritizes the nicely-being of stakeholders. As a trailblazer in
company duty, RIL units a commendable example for companies global, showcasing
that profitability and sustainability can certainly move hand in hand. Shifting forward, RIL's continued
dedication to responsible behavior will certainly make a contribution to building a greater sustainable and
equitable future for all.

Q2. Go through the ‘Corporate Governance’ section in the annual report (FY2022-23) of the company selected in
Q1 and prepare an analytical write up (in your own words) on its corporate governance philosophy, each board
member’s profile analysis in terms of whether they are executive, non-executive, or non-executive &
independent, their skillsets/ competencies, the committees they are a part of in this company and their other
board positions outside of this company. Conclude with your analysis/insights about the contribution that these
board members make to their fiduciary duty of care and diligence as ‘trustees of social wealth’ on the board of
this listed company. (You must go through their profiles as given on the company’s website in ‘investor’ section
for additional relevant information). You must mention the name of the company and include the weblink to its
annual report 2022-23.
Ans-2. Introduction-
Corporate governance stands as a cornerstone of Reliance Industries constrained's (RIL) operational
framework, making sure transparency, duty, and moral behavior. RIL's Annual document for
the fiscal yr 2022-23 offers a glimpse into its governance philosophy and the composition of its
board of directors. As a enterprise of immense stature in India's corporate panorama, RIL's
governance practices play a pivotal role in shaping its strategic course and preserving
stakeholders' trust. This analytical write-up aims to dissect RIL's corporate governance ethos,
analyze the profiles of its board individuals, and evaluate their contributions as custodians of social
wealth. with the aid of exploring these dimensions, we are able to benefit deeper insights into how RIL
navigates the complex terrain of corporate governance and upholds its dedication to stakeholders' hobbies.

Concept and application-

Reliance Industries restrained (RIL) has a sturdy company governance framework aimed at
making sure transparency, responsibility, and ethical behavior across its operations. allow's delve into
the key components of RIL's corporate governance philosophy and analyze the profiles of its board
contributors:

Corporate Government Philosophy-

RIL's corporate governance philosophy is rooted in ideas of integrity, equity, and
duty towards its stakeholders. The company adheres to global exceptional practices and
regulatory requirements, striving to keep the highest requirements of company governance. RIL
believes in fostering a subculture of transparency and openness, in which all stakeholders, along with
shareholders, personnel, customers, and the community, are dealt with with admire and fairness.
The enterprise's governance framework is designed to promote long-time period sustainable growth at the
same time as mitigating risks and maximizing cost for shareholders.

Board Composition and structure-

RIL's board of directors contains a diverse mix of executive, non-govt, and independent
directors, every bringing treasured expertise and revel in everyday the table. govt directors,
which includes the Chairman and managing Direcevery dayr, play an lively position in the management of
the organization, whilst non government administrators provide impartial oversight and guidance.
independent administrators, constituting a vast part of the board, carry objectivity and
impartiality day-to-day board deliberations, ensuring that decisions are made within the daily hobbies of the
enterprise and its stakeholders.

Board Member Profile- Executive Directors-

1. Mukesh Ambani-Chairman and managing Director of RIL, Mukesh Ambani is a
visionary leader who has prompt the employer to extraordinary growth and success. With
his giant experience within the energy, petrochemicals, telecommunications, and retail
sectors, Ambani brings strategic insight and innovation to the board. b. Non-government
administrators:
2. Nikhil R.Meswani- As the government Director of RIL, Nikhil Meswani oversees the
organisation's refining and advertising and marketing operations. With over 3 decades of experience in
the industry, Meswani's information lies in operational excellence and risk management.
3. Hital R.Meswani- Some other govt Director of RIL, Hital Meswani is answerable for
the enterprise's exploration and production activities. His deep knowledge of the power
 zone and strategic acumen make a contribution to RIL's growth trajectory. c. independent
directors.
4. Dipak C. Jain- An done academician and enterprise chief, Dipak Jain brings a
wealth of understanding in advertising and method to RIL's board. As an impartial director,
Jain offers treasured insights into international market developments and patron behavior.
5. Arundhati Bhattacharya-Together with her big enjoy inside the banking and finance region,
Arundhati Bhattacharya brings understanding in threat management and company governance to
RIL's board. Her independent attitude adds depth to board discussions on financial
topics and regulatory compliance.

Committee Memberships and External Board Position-

RIL's directors serve on diverse board committees, consisting of the Audit Committee, Nomination and
Remuneration Committee, and corporate Social duty Committee, amongst others. these committees play
a crucial position in overseeing particular elements of the employer's operations and ensuring compliance with
regulatory necessities. moreover, many of RIL's administrators preserve positions at the boards of other groups,
contributing their understanding and insights to diverse enterprise sectors.

Contribution to Fiduciary Duty-

RIL's board individuals fulfill their fiduciary obligation of care and diligence by means of actively taking part in board
deliberations, presenting strategic steerage, and workout impartial judgment. thru
their knowledge, experience, and moral behavior, RIL's administrators make contributions to the agency's lengthy
term achievement and uphold its reputation as a responsible company citizen. Their collective efforts make
certain that RIL stays devoted to its stakeholders' pursuits and keeps to create
sustainable cost for society and the economy. moreover, RIL's commitment to company governance
extends beyond regulatory compliance to encompass ethical management and accountable decision-making. The
board's various expertise and unbiased oversight make
certain that dangers are correctly assessed, opportunities are successfully leveraged, and stakeholder hobbies are
prioritized. by using fostering a tradition of integrity and
duty, RIL sets a benchmark for company governance excellence within the Indian commercial enterprise
landscape. Transferring forward, the organization stays steadfast in its commitment to upholding the
highest requirements of governance, thereby enhancing agree with, fostering sustainable increase, and
growing lengthy-time period fee for all stakeholders.

Conclusion-
In conclusion, Reliance Industries restricted's corporate governance practices mirror a dedication
to transparency, duty, and moral conduct. The composition of its board of administrators,
comprising a numerous blend of government, non-government, and independent contributors, underscores
RIL's emphasis on effective oversight and selection-making. via active participation in
committees and outside board positions, RIL's directors make a contribution substantially to pleasant their
fiduciary obligation of care and diligence. Their collective efforts no longer simplest guard the pursuits of
shareholders however additionally strengthen RIL's reputation as a beacon of corporate governance excellence in
India's corporate panorama.

3. You are a sales manager in a mid-size IT company selling IT hardware. The purchase manager for a large
company agrees to give you an order of Rs. 50 lakh (their first order with you) on the condition that you will
agree to make a Rs. 50,000 donation to his favorite charity (NGO) that is supporting a local youth sports team
being managed and trained by his wife.
a. What according to you is/are the ethical dilemma/s in this situation?
Ans3. a. Introduction-
Within the state of affairs supplied, an ethical predicament arises for the income manager of a mid-length IT
company. The acquisition manager of a big company conditions a Rs. 50 Lac order on the income
supervisor agreeing to make a Rs. 50,000 donation to his favored charity, which supports a nearby
children sports team managed and trained by using his wife. This case poses several ethical issues that want to
be cautiously evaluated.

Concept and application

The ethical dilemmas in this situation revolve around several key points-

Conflict of Internet-
The purchase supervisor's insistence on a donation to his favored charity creates a battle of
interest. via tying the enterprise transaction to a private choose, the purchase manager compromises
the integrity of the procurement method. The sales manager faces pressure to conform with the
request to at ease the order, potentially compromising the employer's ethical standards.

Bribery and Corruption-

The request for a donation in change for commercial enterprise is similar to bribery, because it includes offering a
advantage to steer a business selection. whilst the donation can also seem nominal in comparison to the cost of
the order, the principle stays the same. undertaking such practices undermines honest competition and
erodes agree with in the enterprise surroundings.

Integrity and Transparency-

Ethical business behavior calls for upholding concepts of integrity and transparency. The income
manager need to consider whether or not agreeing to the donation aligns with the organization's values and
ethical requirements. Failing to disclose the donation to higher authorities or stakeholders could lead
to reputational damage and felony repercussions.

Fairness and Equity-

The scenario increases questions of fairness and equity in business dealings. need to the income
manager agree to the donation, it could give the big corporation an unfair gain over
competitors who won't interact in such practices. This undermines the ideas of truthful
opposition and same opportunity inside the marketplace.

Conclusion-
In conclusion, the scenario presents a complicated moral quandary for the sales supervisor. Balancing
the need to comfortable the order with upholding moral principles calls for careful attention. The
income supervisor ought to weigh the capacity consequences of agreeing to the donation towards the
corporation's values and integrity. Ultimately, the selection made ought to prioritize ethical behavior,
transparency, and equity in commercial enterprise dealings, even though it way foregoing the order in query.

b. Explain the step wise process of how will you handle this situation?

Ans-3. b. Introduction-
Coping with the ethical predicament provided inside the situation calls for a considerate and systematic
technique to navigate thru the complexities worried. As a income supervisor in a mid-length IT organization, it's
miles vital to uphold ethical requirements while also effectively managing commercial enterprise relationships.
This step-with the aid of-step manner outlines the way to address the scenario ethically and professionally.

Concept and application-

Evaluate the situation-

Start by means of very well assessing the state of affairs and expertise the implications of the request.
Don't forget the moral dilemmas involved, together with conflicts of interest, bribery concerns, and
capability influences on integrity and transparency.
Consult Company Policies and Guidelines-
Confer with the business enterprise's code of ethics, regulations, and hints to determine the ideal
route of action. Discover any particular protocols or techniques that govern conditions regarding
conflicts of interest or questionable commercial enterprise practices.

Seek Guidance from Ethics Officer or Leadership-

If uncertain about how to proceed, are trying to find steering from the corporation's ethics officer, felony suggest,
or senior management. speak the scenario transparently and are searching for advice on the first-
rate direction of action that aligns with the business enterprise's values and concepts.

Consider Alternatives-
Explore opportunity alternatives for securing the order without compromising moral requirements. This
may additionally involve negotiating with the purchaser at the phrases of the settlement or providing opportunity
incentives that do not improve moral concerns.

Communicate Effectively-
Interact in open and honest conversation with the purchase manager. specific issues about
the moral implications of the requested donation and make clear the corporation's stance on ethical
enterprise conduct. Emphasize the significance of maintaining integrity and transparency in all
business dealings.

Offer Solutions-
Present opportunity solutions that uphold ethical standards whilst nevertheless addressing the purchaser's
wishes. This will involve presenting discounts, price-brought services, or other incentives which might be
aligned with the business enterprise's moral tips.

Document the Process-

Keep exact data of all communications, choices, and movements taken all through the technique.
record any discussions with the customer, in addition to internal discussions with enterprise
management or ethics officials.

Conclusion-
In end, navigating moral dilemmas in commercial enterprise requires a systematic technique that
prioritizes integrity, transparency, and professionalism. by cautiously comparing the state of affairs,
consulting agency rules, searching for guidance from ethics officers or management, considering
options, speaking effectively, presenting solutions, and documenting the technique, the
sales supervisor can manage the situation ethically and uphold the organization's values. in the end,
moral behavior is essential for building consider with clients, preserving a effective popularity,
and fostering long-time period commercial enterprise fulfillment.