Why this matters now
These two areas round out the GS-4 syllabus and link to current affairs (climate justice, aid conditionalities, corporate frauds, CSR). Questions ask you to identify the ethical issue and a principled response.
Ethical issues in international relations
Realism holds that states act on self-interest, but ethics still applies. Key ethical issues include: the ethics of war and use of force (just-war principles), human rights vs sovereignty, global inequality and the North-South divide, climate justice (common but differentiated responsibilities), refugee protection, fair trade, and honouring international commitments. The tension is between national interest and global responsibility.
Ethical issues in funding
International aid and funding raise ethical concerns: conditionalities that infringe sovereignty, aid used as a tool of influence, lack of transparency, the misuse of funds, and the regulation of foreign funding of NGOs (in India, under the FCRA) to balance civil-society freedom with national security and accountability.
Corporate governance
Corporate governance is the system of rules, practices and processes by which a company is directed and controlled, balancing the interests of shareholders, management, customers, employees and society. Its principles are transparency, accountability, fairness and responsibility. Mechanisms include an independent board of directors, audit committees, disclosure norms, and regulation by SEBI and the Companies Act, 2013.
Corporate Social Responsibility (CSR)
CSR is a company’s commitment to operate ethically and contribute to social and environmental well-being beyond profit. India was among the first countries to mandate CSR spending (under the Companies Act, 2013, certain companies must spend a share of profits on CSR), reflecting the idea of business as a trustee of society — echoing Gandhi’s trusteeship.
UPSC angle
For IR, frame answers around national interest vs global responsibility (human rights, climate justice, war ethics). For corporates, know the four principles and the mandated-CSR provision of the Companies Act, 2013.
Frequently asked questions
What are the ethical issues in international relations?
The ethics of war and force, human rights vs sovereignty, global inequality, climate justice, refugee protection and honouring commitments — balancing national interest with global responsibility.
What is corporate governance?
The system of rules and practices by which a company is directed and controlled, balancing the interests of shareholders, management and society, guided by transparency, accountability, fairness and responsibility.
What is CSR and is it mandatory in India?
Corporate Social Responsibility is a company’s ethical contribution to social/environmental well-being; under the Companies Act, 2013, certain companies must spend a prescribed share of profits on CSR.
What ethical issues arise in international funding?
Aid conditionalities that affect sovereignty, aid as a tool of influence, lack of transparency, misuse of funds and the regulation of foreign funding of NGOs.