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Today our planet suffers from a sinister set of problems which originate from a lack of fundamental values.
These include scandals and frauds by MNCs which have a catastrophic effect on society, resulting in loss of jobs, destruction of shareholder wealth and social unrest.
Ultimately the government is forced to come to the rescue of the failing corporations.
Scams such as those involving Enron and Satyam are not few and far between and NO amount of legislation can prevent them from recurring.
This calls for putting in place systems and processes that will serve as a deterrent to people and organisations.
Though governments have taken steps to prosecute and punish the guilty, society at large does not reward and recognise those corporations in commensurate measure for displaying ‘exemplary ethical behaviour’, e.g. according to the CLSA corporate governance watch list 2012, Infosys was the only Indian company which came in the top 20.
Such exemplary adherence to rules and regulations needs to be incentivised financially by society (by charging lower taxes or giving preference in awarding government contracts) apart from the usual rewards and recognitions.
Financial recognition also needs to come from the private sector for those displaying ‘ethical leadership’.
Also more awareness needs to be created amongst the future generation through education and social media targeting the youth.
No amount of legislation will deter anti-social elements except consumer and shareholder activism.
Such a process has been proven with the passage of “Kevin’s law” in the U.S. which gave powers to close down food plants producing contaminated food.
The battle against the tobacco industry in the US. is a perfect model for taking action against an irresponsible industry through consumer awareness.
Let all of us play our part in propagating awareness and nurturing a prosperous environment for the future generation.
(Mohan studies at the Bharathidasan Institute of Management, Tiruchirapalli.)
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