Question

Assess the role of e-governance in protecting stakeholders in the current business environment.

1. E-governance is crucial for protecting the rights of customers, employees, shareholders, suppliers, and local communities.
2. It helps mitigate risks associated with the indifference of investors and potential misuse of power by directors.
3. E-governance systems ensure that organizations operate ethically and transparently, thereby building trust among stakeholders.
4. E-governance is primarily focused on shareholder protection and neglects other stakeholder groups.

• A. All
• B. i, iv
• C. iii only
• D. i, ii, iii

Answer 1

Answer:

D. i, ii, iii

In today's interconnected and complex business world, safeguarding the interests of all stakeholders—customers, employees, shareholders, suppliers, and the communities in which organizations operate—is paramount. E-governance plays a pivotal role in this protective function. By fostering transparency, enhancing accountability, and streamlining communication, e-governance systems enable organizations to manage their relationships with various stakeholders more effectively. For instance, transparent communication regarding product safety, fair labor practices, environmental policies, and financial performance builds trust and ensures that stakeholders' rights are respected. Furthermore, e-governance can empower stakeholders by providing them with easier access to relevant information and enabling their participation in corporate governance processes, thereby acting as a crucial check against mismanagement or unethical practices.