In the glittering arena of business, promoters shine as the driving force behind success. Their vision, drive and decisions shape the destinies of companies and the stakeholders. Yet, beneath the blinding spotlight of achievement, a shadow sometimes lurks. This shadow is not of failure, but of a different kind of misstep: a moral failing.

Understanding the reasons why promoters sometimes stray from the path of moral uprightness is the key to preventing these stumbles.

From meteoric ascents to fiery crashes, the stories of once-passionate promoters who succumbed to the seductive shadows of unethical practices are cautionary tales etched in the annals of business.

These individuals, initially fuelled by unwavering passion and ambition, built empires that shimmered with the promise of innovation and prosperity. But their journey, far from ending in happily-ever-after, often took a tragic turn simply because their moral compasses spinning wildly out of control.

The cautionary tales of fallen promoters serve as harsh lessons, reminding us that even the most dazzling ascent can end in a precipitous decline if ambition outpaces integrity. Unbridled egos can distort reality and foster a dangerous belief in one’s own invincibility, leading to the dismissal of ethical considerations on the path to ever-greater market share.

The relentless pressure for immediate returns can transform even the most level-headed leaders into short-term optimisers, sacrificing long-term sustainability for the fleeting thrill of getting into earnings management.

The fallout

Ethics, in this warped calculus, become an unnecessary expense. But the fallout extends far beyond their own chambers and their downfall shatters trust in the entire ecosystem, making every success, a suspect.

Investors become wary. Employees feel disillusioned, their loyalty replaced by cynicism. Growth becomes stunted, innovation suffocated, and long-term vision sacrificed at the altar of short-term gains. Moreover, their greed tarnishes the very narrative of entrepreneurship, built on the bedrock of passion, perseverance, and a touch of daring.

By promoting responsible leadership, aligning incentives, and empowering stakeholders, one can collectively pave the way for a more ethical and sustainable business landscape. To foster a truly ethical approach, one must break free from short-sighted strategies and forge transparent partnerships, built on mutual respect and open communication, with those who fuel the success.

This ensures power imbalances are minimised and ethical conduct becomes the natural path. Cultivating a long-term focus within the organisation is key, as it encourages responsible, value-driven relationships with resource providers, replacing the pursuit of immediate gains with a commitment to shared sustainability.

Saravanan is a professor of finance and accounting at IIM Tiruchirappalli, and Williams is an analyst at Sernova Financial

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