Knowledge Sharing

Do Business Ethics actually matter in corporate governance!
 
"Man is free but everywhere in chains" once quoted by great French philosopher Rousseou still has great significance in today's world. What is meant by "chains"! Well, over the ages different economists and educationists have given their views on Rousseou's quote, but I personally believe that in modern day context "chains" actually refer to certain moral code of ethics which needs to be followed by each person.

Everywhere we go; rules and policies determine our movement be it at the airport, shopping complexes or even at our workplaces. Nearly 60% employees find it difficult to accept rules and policies especially at their workplaces. Why! Majority of the employees feel the policies are created to curb their individual freedom whereas employers strongly believe that in order to create discipline and better productivity they need to implement a certain set of policies. Just go through any newspaper, you will come across many companies whose downfall has been attributed to unethical behavior by its top or middle management

So what's the solution! Over the years, top business management schools of the world have introduced a new subject “Business Ethics and Corporate Governance”. Now what is this subject all about! It has directly nothing to do with company's profit, falling stock prices or productivity but indirectly the subject tends to create an environment of mutual interdependence through sharing knowledge, discussing problems under one roof, finding amicable solutions and most importantly giving respect to each other.

It's important to note that--"A code of ethics is not a guarantee against ethics violations, but it does communicate to your employees (and to the world) that you take ethical behavior seriously, and that's important".

Source: (http://www.gaebler.com/Business-Ethics.htm)

Unlike policies, ethics can never be imposed. Policies if not followed would invite punishment but violation of ethics would lead to self introspection.

Thus, corporate governance can be a success only when there's proper business ethics. In today's world can a company survive only on policies! I believe its time to change.

Contributed by:

Amrita Bhattacharjee

Amrita Bhattacharjee