Higher education should help students lead an ethical and reflective life, said M.M. Pallam Raju, Union Minister of Human Resource Development.

Delivering a talk at the 22nd Annual JRD Tata Oration on Business Ethics organised by XLRI, Jamshedpur, on Saturday, Raju said that introducing strong ethics in business education could help counteract a narrowing worldview that often accompanies a student's progression through business school.

The theme of the JRD Tata Oration this year was “Ethical Challenges for India Today” and Raju dwelt on three facets, including education, business and politics, said a press statement issued by XLRI.

The session was attended by H.M. Nerurkar, MD, Tata Steel Ltd & Chairman, Board of Governors, XLRI; Fr. E Abraham, Director of XLRI, and Pranabesh Ray, Dean, Academics.

“Higher education must pay more attention to helping students understand how to lead ethical, reflective and fulfilling lives. Despite the importance of moral development of individual students and society, one cannot say higher education has demonstrated a deep concern for the problem of ethics,” he said.

According to Raju, ethics as a subject in itself is not given much importance and considered worthy of sustained discussion and determined action by the faculty and administration unless a major crisis breaks out.

Ethics deficit Citing his own example, he said: “I completed my MBA more than 25 years ago in the US, where courses on Business Ethics were being introduced at that point in time. But that did not stop the financial crisis from occurring and affecting the world. The danger is also that we only think about ethics when there’s a major crisis”.

According to Nerurkar, ethical deficit and lack of integrity in public affairs have become major issues that have severely impacted public confidence and trust in public officials and private organisations.

“Ethics encompasses the entire spectrum of human conduct. In fact, the slow growth of the Indian economy in recent years is also partly attributed to the policy-making stalemate as a consequence of greater scrutiny and focus on unethical transactions in the private and public sphere,” Nerurkar said.

While in the public mind, ethics in business is mainly identified with mere financial integrity, it actually refers to a code of conduct that guides an individual in all his dealings with others, said Fr. Abraham.

“Business ethics, in particular, examines principles and ethical problems that can arise in any business environment. It includes issues of moral and ethical rights, duties and corporate governance vis-à-vis a company and its shareholders, employees, customers, media, government, suppliers and dealers. Ethical behaviour by the leaders of any nation or organisation will inevitably set the tone for the rest to follow, ultimately leading to a just, humane and equitable society,” he observed.

New Centre Pallam Raju also inaugurated the new International Centre at XLRI. The campus will host the second semester of the global MBA programme launched in partnership with two leading management institutions — Weatherhead School of Management of Case Western University, Cleveland, US, and School of Economics & Management of Tongji University, Shanghai. The course will commence on January 10, 2014.

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