Beyond Denial

With the onset of “modernity”, most societies had been in a mode of denial of ethics. Dharma, righteousness, ethics was considered old fashioned, anachronistic and impractical. It is reflected in statements like, ‘Good guys finish last’. The rejection was at different levels. At the lowest level, we have seen amoral attitudes –

1) The citizen in the civil society.

2) The employee in organizations.

3) Students in schools and colleges.

Such denial in a country like India, the anchor of whose civilisation was dharma, is surprising and sad. Those in leadership positions have been, in recent times, almost totally exempted from ethics. In politics, anything goes to achieve power; stay in it, once there; and to return to it, if defeated. In business, it was profit and growth by any means. In bureaucracy, it was careerism and patronage by any route.

Reasons

For the decline of ethics in Membership, and even more so in Leadership, the fault is not entirely with the individuals. There is a widespread regret that while ethics were high during the freedom movement, they had fallen since 1950.

There was excessive reliance on law and rules, than on values. Gandhiji said, “The Indian constitution is so long and comprehensive that the ordinary individual is relieved of the responsibility of being a good citizen.” Industry, trade and consumers were caught in the web of the licence-permit raj. Rajaji had warned against the dangers of corruption. Unrealistically high direct and indirect tax rates drove money into the black economy. Negative power of Union leadership, with political links, eroded the work ethic.

Return

Fortunately, there has been, in recent years, a return to ethics, in India and the world. In politics, there is a popular expectation of ‘Good Governance’. Political parties, coalitions and leaders are punished for bad governance, in assembly and national elections. Where the executive is unethical, and the legislature is unable to control them, the public seeks the intervention of the judiciary. In industry, there is a demand from all stakeholders for ‘Good Corporate Governance’. The Board, its committees, including, in particular, the Audit Committee, and the Internal Audit function, are being strengthened. Even NGOs are called to account for the proper and effective sourcing and utilisation of funds and other resources.

Leadership

Society, or an organization, cannot become ethical, unless the leaders are ethical. The concept of dharma applies, with particular thrust, at different vertical levels, and horizontal domains. Vertically, one can look at two levels –

a) Raja dharma — The ethics of the MPs, MLAs, Ministers and Party office bearers. Many sources in our scriptures provide guidelines, such as :

1) The Bhishma-Yudhisthira Samvaada in the Shanti Parva of the Mahabharata

2) The Yoga Vashishtha in the Ramayana

3) Artha Shaashtra of Chaanakya

4) The Gita, capturing the essence of the Vedanta, of Vedas, Upanishads, etc.

The following are some well-known principles, which need to be recaptured and practiced today.

Yathaa raja, thathaa prajaah — As are the rulers, so are the people.

Nij par shaasan, phir anushaasan — First learn to rule yourself. Then you are fit to rule over people.

Raja vyaapaari, prajaa bhikaari — Where the rulers are in business, the people become paupers. Due to corruption, inefficiency, negligence etc. So, divest. Give autonomy.

Paritraanaaya saadhunaam, vinaashaaya cha dushkrutaam — Protect the good, and correct/punish the wicked.

b) Shreshtha Dharma — Government is becoming less of a player and more of a facilitator. In the economic sphere, its role is now seen as creating the basic physical infrastructure and regulatory framework for investment and competition. It has become the role of entrepreneurs and managers to utilize the greater freedom and create jobs through growth, exports, profits and reinvestment. Similarly, in the social sphere, government is allocating resources, and giving more space to NGOs in the proposal of projects and their implementation. The community of such elites is growing. Among the ethical guidelines for them are the following examples.

Yad yad aacharati shreshthah, tat tad eva itaro janaah. — As the senior conducts herself/himself, so do the people. So, ethical conduct is very important.

Sa yat pramaanam kurute, lokah tad anuvartate — The standards they set are followed.

Modern management literature emphasizes the importance of ‘walking the talk’, which is the same as ‘practice what you preach’.

Ethics

There are several ethical values relevant to leadership. A priority short list would include

1) Personal Integrity.

2) Supporting the dharma of the society, government, the broader environment.

3) Establishing dharma within the organization, in the form of equity, justice, fair play.

4) Commitment to loka sangraha, the welfare of a widening community of stakeholders.

5) Sevaa, service, not just sattaa, power.

With the spread of literacy, education, communication and reforms, leadership is being both motivated and compelled to be more ethical. We can look forward to improving governance at all levels.

Dr. Mrityunjay Athreya
Former Professor at IIM Kolkata and London Business School. Independent management resource person to industry,
government and NGOs