Business Code of Ethics

Being Ethical

Being ethical and a businessman are altogether paradoxical. Business is synonymous to growth, only an opportunist person can lead the entire organisation for the fulfillment of the single point objective, boosting up revenue. This is altogether a non-criminal act of prudent business management that may not necessarily be absolutely ethical. When business competitors leave no stone unturned for ensuring each others failure expecting ethical practices is abnormal.

Personally I am a big fan of Ratan Tata, the former head of the oldest and largest business empire in India, the Tata Group. The elite list in fact a minuscule archive of gentleman- businessman that I personally adore and admire. Be that be Narayan Murthy of Infy or Mr.Bose, the name i.e. identical to unparalleled acoustic products. Well I never proclaimed, the business practices followed by these organisation just mentioned are completely principled or these gentlemen are completely unaware of the major unethical doings in their respective organisations. However, these honorable men primarily focus on delivering quality products and services rather than making profit. In this highly competitive business context unless you have an edge over others you are certain for purging when competitors resort to all possible methods (including the ones not in copy book). So the sum and substance of this thesis is either you be an ordinary businessman or an extraordinary one who not only professes ethics but also possesses some unordinary big ideas that put you in the lead.

Coincidentally, when I last appeared for my CFA exam, I had a spirited read through of the code of ethics section. The core of the stream entirely focus on the said subject and the ever intriguing questionnaire are aimed at reviewing the potential of a candidates understanding of the topic when applied in real life business. The ethics are so crystal clear on quite complex areas of operations that it can smell a rat in a usual looking business deal. The humor is, a stalwart student of the same stream, Rajat Gupta defied all the ethics in the lust for making more money. ‘Insider Trading’ may be a strange term in India but its quite common in USA with several monumental convictions. One principle that rules the business world is ‘make money’, money prevails over all ethics. Why just business, money controls the whole world as the only universally spoken language.

Now if somebody claims Mr.Ambani is corrupt (that principally everybody agrees), but the charges may not be legally tenable. The case may be rejected by the court on the very ground of common jurisprudence. Everything is right as long as that’s not criminal and there is no place for ethics as long as that generates good money. However, here lies the main difference between an ordinary businessman and an extraordinary one. Till you promote an ordinary idea and commercialise to earn profit, you are bound to employ corrupt mindset for survival and growth. In contrast, an extraordinary idea sells itself with clear cut advantage over others in competition.

The Big Idea

Lets understand one more theorem, both in private and public sector the ordinary staffs are mostly corrupt or unethical at least in the matter of promotions as compared to the actual talented ones. The talented lot repose their faith in their own skills for growth so need not to adhere to any lowly or unethical method. The ordinary here implies both the IQ aspect and lethargic attitude. Desire for money would always be there but the dearth of big ideas and talent always gives space to unethical actions. Google, Facebook or Apple are the best examples, how big ideas can make really big money not necessarily being unethical.