Given the number of frauds being committed throughout the world, ethics is now the new buzzword of business. All of a sudden, innovation, market share are no longer the deciding parameters of a firm’s success. Rather sustained ethical behavior is what is expected of the new crop of managers – senior and junior.
The question is – Why? And aren’t ethics more personal and subjective? A couple of statements by my professor at B School stand out. He said that at B School, we are taught a value system, and how we interpret and internalize these values forms our code of ethics. Having said that, we also know the difference between right and wrong – we are after all rational human beings. But at what level will we draw the line between what is wrong and what can be condoned? In the world of business, one knows that things are never all black or white. And to achieve the desired growth, one must necessarily cut some corners here and there, one is forced to contend with the system and not fight it all levels. So at what stage do decisions cross over from being white to becoming black? And where does a decision linger around gray? Does being 100% ethical at all time stand you in good stead? Does it make sense to be an oak tree when the whole world is swept by winds of corruption?
In the world of business, say in a field like real estate or heavy industries, the stake holders are many and scattered. Also, the stakes are very high. If the scattered stake holders are all appeased, projects move fast. At the same time, it never takes too long for these scattered stake holders to hold up projects and erode gains, if they remain unhappy. At this time, should one look at a quick and dirty fix to the problem, and just get the monkey off one’s shoulders? Some may argue ‘BIG PICTURE’. A few millions pumped into the system wouldn’t hurt, especially if these few millions wouldn’t hinder the inflow of many billions, once the project takes off. But what is the guarantee that the monkey won’t keep returning on to your shoulders. And how long would it take unsavory elements to up the demands from a few millions to a few percent of profits?
The answer is never clear. But a firm’s philosophy more often than not at least helps take a decision in this regard. Take the case of an Indian firm like TATA. Following the massive political opposition in Singur on the construction of the Nano plant, they moved bag and baggage to another state. They never considered going around the system and achieving their ends. No doubt the move involved massive capital expenditure, and a sizable loss to the firm. But still, the management decided to draw a line – no corruption at any cost. Now, amongst the youth in India, Tata symbolizes truth, values and everything GOOD. So, the value system of the organization kills any prospects of having to choose whether or not to be corrupt. And this might be one reason why, this firm has been able to sustain itself and grow strongly over the years. Then again, one might ask, “would Tata have made this move had there not been any violence?” One cannot answer this emphatically. At least I cannot.
But the only thing that can be said emphatically here is that we as future business leaders have the power in our hands to expunge the filth from the system. We can decide to treat the system and make the necessary changes to ensure that corruption is not a way of life for us when we do business. And every drop makes an ocean, and so, if we all collectively decide to be ethical and right, we may never have to come across another Satyam or Bernie Madoff in our generation.
Given the state of our economy as well as the issue of health reform, I constantly ask myself (because I question the ethics of many businesses) why companys are hiring temps under the premise that they will be hired with full benefits if their work ethics are up to standard. when an employee has worked hard to achieve that goal & their 90 days has been completed…work history excellent, etc. they are let go….”because the company has fulfilled their contract” or some other lame reason. This happens time & time again involving many different types of business. Company’s are just not willing to hire full time employees anymore given, I’m assuming” the cost of health care benefits. What is your perception of this systemic ethic issue? . Seems like corruption goes far beyond our “Bernie Madoff’s” in this precious country of ours.