Business Ethics and Corporate Governance, Second Edition

GOVERNMENTS HAVE TO BE PROACTIVE IN THE FOLLOWING AREAS

• Government should ensure that stakeholders’ interests are protected by continuous monitoring of companies, to see that they do not cheat their stakeholders.
• Government should make laws to govern companies, to undertake all the activities within the rules of the game. It should also make sure that all companies adhere to rules, as for example—MRTP (Monopolies and Restrictive Trade Practices) Act. This Act enables the government to regulate industries wherein none of the private companies becomes a monopoly by indulging in practices that would adversely affect consumer interests.
• If companies do not adhere to rules and regulations the government should penalize such companies and make sure ...