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
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2 comments:
Dear Readers,
To start with this is indeed a good suggestion of HR being proactive in the organization and taking care of all positive measures to avoid any unfortunate incident / scenes as happened in case of Satyam. Now, the problem with Satyam as per the confession made by the dismissed CFO that " All the final cash balance was taken care by the MD and Founder of Satyam, and he hno whereabouts of the original balance sheets, and during the audit he was just a care taker and does only those things which is actually told or instructed by the MD/Founder". This, clearly states that being in such a top position (CFO) where outside people are bound to think such a person must be aware of all the pros and cons happening/happened with Satyam is just happened to be a dumb guy with no powers. Now, the whole idea of highlighting this point is that even if it is a HR Manager/Finance Manager/CFO/CIO or even a normal Project Manager etc etc unless or until you extend the right power to them; these kind of incidents will go on happening, and it might not be in the same frame, but surely similar to it. Majority of the problem lies with a self run company is that eveghnthough there are big guns in an organization, but the root level is actually run/controlled by the BIG BOSS and they are the so called Founders/MD's, and the so called Founders/MD's if found greedy, then we will have many Satyam and ENRONS to come.
Looking forward to hear from you.
Regards,
Bajeesh Nair
http://www.linkedin.com/in/bajeesh
Hi, its always good to read in different opinions......sometimes reel life corelates with the real life.....also i believe at the end of the day essentially we need to focus is how serious are we as an organization towards "Corporate Social Responsibility".....and i feel if we are socially aware it will automatically encompass and encourage "whistle blowing"......hopefully "innovators" as we all like to call ourselves will bring a change towards positivity....
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