Dear All,
Some time back we had a very long discussion on Ethics and unethical practices. It’s a known fact that some of the corporates are known for "fraud" in the eyes of the common man but to them are maximising the value of the organisation which helps the stakeholders in their wealth creation. The stake holders are after increasing the value of their perceived wealth not the real wealth.
In this long race for wealth creation the people who are supposed to run the organizations ethically and honestly succumbs to pressure and indulges in all unethical practices. There are lot of top professionals associated with these organizations but fail to stand up to the unethical practices instead they also fall prey to the temptations since they also get to share the kitty.
The Sathyam fiasco reminds me of the Movie “Corporate” which was released couple of years back. In the movie also top executives were used by the CEO to make unlawful gains but at the end the top executive has been dumped. Here in this case Sathyam CEO got caught may be because of some top official who refused to bend with pressure and have exposed him. Just assumptions, since anything is possible in the corporate world.
But we HR professionals can facilitate the good governance by conceptualizing, designing and implementing robust systems and practices for ethical governance. The organizational whistle blowing system also could effectively contribute to these situations. The administrative system of the different states could bring in stringent laws such as time bound investigation and severe punishment and also revamping the External Audit System itself to prevent these kinds of fraudulent practices. Hope to hear from you all.
Regards,
Roy.J.George
royjgeorge@gmail.comhttp://royjgeorge.blogspot.com/http://www.linkedin.com/in/royjgeorge
Sunday, January 11, 2009
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