Management 2023 Paper II 50 marks Critically examine

Q6

(a) (i) "The role of Board of Directors is to govern and not to manage." Comment on the statement and bring out the elements of Corporate Governance by citing examples. 5 (ii) How does the Public Distribution System (PDS) contribute to guaranteeing food security and eradicating poverty ? Also, discuss the goals of PDS. 10 (b) (i) Critically examine the liability clauses of the Consumer Protection Act. Discuss the legal framework for holding producers and sellers liable for faulty goods and the remedies available to consumers. 10 (ii) Analyse the New Industrial Policy clauses that support environmental preservation and sustainable growth. Discuss the programmes launched to encourage a business to adopt environment friendly practices. 5 (c) (i) Examine the legal aspects of cyber security. Discuss the legal obligations of organisations in implementing cyber security measures. 10 (ii) Examine the present policies of the Government of India for promoting Small-Scale Industries in the light of upcoming competition from large, domestic and multinational companies. 10

हिंदी में प्रश्न पढ़ें

(a) (i) "निदेशक मंडल की भूमिका संचालित करने की है न कि प्रबंध करने की।" इस कथन पर टिप्पणी कीजिए एवं उदाहरण देकर निगमित शासन (कॉर्पोरेट गवर्नेंस) के तत्वों को उजागर कीजिए। 5 (ii) सार्वजनिक वितरण प्रणाली (पी.डी.एस.), खाद्य सुरक्षा की गारंटी देने में तथा गरीबी उन्मूलन में किस प्रकार योगदान करती है ? सार्वजनिक वितरण प्रणाली के लक्ष्यों की भी चर्चा कीजिए। 10 (b) (i) उपभोक्ता संरक्षण अधिनियम के दायित्व खंडों (क्लॉजों) का आलोचनात्मक परीक्षण कीजिए। खराब वस्तुओं की बिक्री के लिए निर्माता एवं विक्रेता को जिम्मेदार ठहराने वाले विधिक ढांचे तथा उपभोक्ता को उपलब्ध उपायों की चर्चा कीजिए। 10 (ii) नई औद्योगिक नीति के उन खंडों (क्लॉजों) का विश्लेषण कीजिए जो कि पर्यावरणीय संरक्षण एवं धारणीय संवृद्धि को सहारा देते हैं। व्यवसाय को पर्यावरण अनुकूल प्रथाओं को अपनाने के लिए प्रोत्साहित करने हेतु शुरू किए गए कार्यक्रमों पर चर्चा कीजिए। 5 (c) (i) साइबर सुरक्षा के विधिक पहलुओं (एस्पेक्ट्स) का परीक्षण कीजिए। संगठनों द्वारा साइबर सुरक्षा उपायों के क्रियान्वयन के विधिक दायित्वों की चर्चा कीजिए। 10 (ii) बृहत्, घरेलू तथा बहुराष्ट्रीय कम्पनियों के द्वारा आने वाली प्रतियोगिता के आलोक में लघु उद्योगों को प्रोत्साहित करने वाली भारत सरकार की वर्तमान नीतियों का परीक्षण कीजिए। 10

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Directive word: Critically examine

This question asks you to critically examine. The directive word signals the depth of analysis expected, the structure of your answer, and the weight of evidence you must bring.

See our UPSC directive words guide for a full breakdown of how to respond to each command word.

How this answer will be evaluated

Approach

The directive 'critically examine' demands balanced evaluation with evidence-based judgment. Structure: Introduction defining corporate governance, PDS, consumer protection, environmental policy, cyber security and SSI; Body addressing all six sub-parts proportionally—spend ~20% on (a)(i) 5 marks, ~25% on (a)(ii) 10 marks, ~25% on (b)(i) 10 marks, ~15% on (b)(ii) 5 marks, ~15% on (c)(i) 10 marks, and ~15% on (c)(ii) 10 marks; Conclusion synthesizing governance-sustainability-competitiveness linkages with forward-looking recommendations.

Key points expected

  • (a)(i) Distinguish governance (strategic oversight, risk monitoring) from management (operational execution); cite SEBI LODR, Kotak Committee; examples like Infosys board restructuring or Tata-Mistry dispute
  • (a)(ii) PDS contribution via MSP, buffer stocks, TPDS, NFSA 2013; goals: food security, price stabilization, poverty alleviation; challenges like leakage, exclusion errors; reforms through Aadhaar seeding, e-POS machines
  • (b)(i) CPA 2019 liability clauses—strict liability, product liability (Section 84-86); e-commerce applicability; remedies: refund, replacement, compensation, punitive damages; CCPA enforcement
  • (b)(ii) NIP 1991 and subsequent amendments—polluter pays, precautionary principle; programmes: PAT scheme, ZED certification, Ecomark, corporate environmental reporting, Extended Producer Responsibility
  • (c)(i) IT Act 2000 (Section 43A, 66, 72A), SPDI Rules 2011, NCIIPC, CERT-In; organizational obligations: data protection, breach notification, cyber resilience framework, DPDP Act 2023 implications
  • (c)(ii) PMEGP, SFURTI, Cluster Development, MUDRA, Public Procurement Policy 2012; challenges from GST compliance, technology gaps, scale diseconomies; strategies for MSME competitiveness

Evaluation rubric

DimensionWeightMax marksExcellentAveragePoor
Concept correctness20%10Precisely defines governance-management distinction with SEBI LODR provisions; accurately describes TPDS, NFSA 2013 entitlements; correctly identifies CPA 2019 liability sections; explains PAT, ZED mechanisms; cites IT Act sections with SPDI Rules; distinguishes PMEGP, SFURTI, MUDRA objectives without factual errorsBasic definitions of governance and PDS present but conflates management with governance; mentions CPA without specific sections; vague on environmental programmes; general awareness of IT Act without section numbers; lists SSI schemes without differentiationConfuses governance with management; misrepresents PDS as only subsidy scheme; omits CPA 2019 entirely; no environmental policy knowledge; equates cyber security only with hacking; conflates all SSI schemes as identical
Framework citation20%10Cites Kotak Committee, Uday Kotak recommendations; references NITI Aayog evaluation of PDS; names CCPA, NCDRC under CPA 2019; invokes Environment Protection Act 1986 with NIP; references CERT-In, NCIIPC, DPDP Act 2023; cites MSME Development Act 2006, Aatmanirbhar Bharat provisionsMentions SEBI generally without Kotak specifics; references NFSA without NITI Aayog; names consumer forums without CCPA; lists generic environmental regulations; cites IT Act without CERT-In; mentions Make in India without specific SSI provisionsNo regulatory framework cited; omits SEBI, FCI, CCPA, MoEFCC, MEITY, MSME Ministry entirely; answer remains purely descriptive without institutional anchoring
Case / Indian example20%10Tata-Mistry board governance conflict; Chhattisgarh PDS reforms with biometric authentication; Johnson & Johnson baby powder liability case; Patanjali's ZED certification journey; Cosmos Bank cyber attack 2018; Khadi and Village Industries Commission cluster success storiesGeneric Infosys governance mention; general Aadhaar PDS linkage without state specifics; hypothetical consumer complaint example; generic solar energy mention; general hacking reference; generic small industry example without scheme linkageNo Indian examples; uses foreign corporate cases exclusively; or entirely theoretical without any real-world illustration across all six sub-parts
Multi-perspective analysis20%10For (a)(i): shareholder vs stakeholder theory; for (a)(ii): efficiency vs equity trade-offs in PDS; for (b)(i): consumer rights vs business compliance costs; for (b)(ii): environmental regulation vs competitiveness; for (c)(i): security vs privacy, innovation vs regulation; for (c)(ii): protection vs efficiency, domestic vs global competitionAcknowledges two sides for 2-3 sub-parts but remains descriptive for others; limited tension identification without systematic evaluationSingle perspective throughout; no critical examination despite directive; purely promotional or purely critical stance on all policies without balance
Conclusion & recommendation20%10Synthesizes governance-sustainability-competitiveness nexus; recommends integrated framework: independent directors' ESG oversight, PDS-PMGKAY convergence, CPA-DPDP harmonization, cyber resilience ratings, MSME innovation clusters; forward-looking 2030 vision with implementation roadmapGeneric conclusion on importance of good governance; standard recommendations without integration; lists separate suggestions for each sub-part without synthesisNo conclusion; abrupt ending; or purely summary without recommendations; unrealistic suggestions ignoring resource constraints

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