Corporate moral responsibility for corporate governance: Indian perspective

The evolution of corporate business from a shareholder centric focus to a stakeholder centric focus has its base in ethics and moral responsibility. In the 21st century business environment, corporates expanding their businesses has led to an adoption of numerous practices which are detrimental to the long-term interest of various stakeholders. The purpose of this study is to enable corporates to develop a moral compass/moral responsibility and incorporate it as a business strategy. Our study provides empirical evidence on Nifty-50 index companies using multiple regression analysis on various mandatory and non-mandatory compliances relating to corporate governance practices. An implication of this paper is that it makes a proposition for a paradigm shift from corporate social responsibility to corporate moral responsibility in preparing businesses to meet the challenges and opportunities in the business environment. The findings suggest that the voluntary best practices promoting external stakeholders' interest and meeting environmental, social and governance (ESG) norms has a positive and significant impact on corporate moral responsibility; therefore, corporates need to prepare their businesses and conduct their affairs based on morality which will be the new business proposition.