A few days ago I wrote that — based on some worrying episodes — the damage to perceptions about our business and governance ecosystem was a foregone conclusion. Of course, one honestly believed that such events were stray incidents. But without suggesting a non-judicial inference as to culpability of individuals, careful reflection may compel many of us to re-evaluate that belief.
The reality is that the average profiles in the business world mirror the average in all walks of life —good and bad. But there is always far more good than bad. The wheat outweighs the chaff. However, in business and related matters, the chaff now seems to be on the increase.
Therefore, one must be careful when articulating a “stray” argument, as it will not gel with the current atmosphere. But not being “stray” does not mean it is an avalanche. Hence the need to relentlessly underline that the inherent ethos of Indian enterprise is to be honest, trustworthy and accountable.
Minority errors
It would be unwarranted if the axe falls on the many for the transgressions of a few. Whether one reads about current difficulties in editorials, or speaks to other businesses, or analyses an emerging thought process in banks, one is not inspired. It will not be long before the media din and the oft-repeated word “loot” irreversibly sinks into the public’s belief and psyche. This will not be good.
India is neither the first nor will it be the last to hurt from aberrant behaviour. Perhaps there is learning in how others have dealt with it within the law. Reasoned debates over the last couple of years cautioned against frequently questioning the legitimacy of enterprise and prosperity. Persistent attempts to link these with crony capitalism or black money can reinforce the opinion that prosperity is illegitimate.
Mature quarters also voice concern about trying to sweep businessmen as a class with one brush (particularly on loan defaults). This risks a serious loss of confidence in worthy institutions.
The expression “don’t throw the baby out with the bathwater” describes an unnecessary act in which something good is eliminated when trying to get rid of something bad —all because of excessive zeal.
Business at large has a proven track record of creating broadbased growth, jobs and prosperity. Yet incessant debate on illegitimacies generates faultlines. Business, political and thought leaders share the onus of keeping faith in business and institutions, and eliminating such faultlines.
Business must be particularly sensitive to separate the wheat from the chaff; it has to demonstrate which things or people in a group are good or necessary and which are not. Others judging events must not forget that when you separate the wheat from the chaff you must end up keeping the wheat, or the whole effort is for nothing.
Character matters
Financial integrity is entirely a matter of character and not of means. There is truth in the words of the Seventh Circuit Court of USA (in 1986) that “some people believe with great fervor in preposterous things that just happen to coincide with their self-interest”.
Only through engrained ethical principles can one defend enterprise. Ethics are essentially “moral principles that govern or influence a person’s behaviour”. Ethical behaviour is typified by honesty, fairness and equity in interpersonal, professional and financial relationships. It is prudent and result-oriented for society and leaders to encourage and enforce ethical financial behaviour, rather than just nab and penalise crooks.
The short point remains that much more needs to be done. Increased procedures and laws — draconian or otherwise — will not help. We need to evolve stronger and broadbased hygienic standards through culture and motivation, and think through effective ways to address past evils. Purely bureaucratic or politically expedient solutions will not work.
What starts as a matter of deep concern must not precipitate into a crisis due to the “one size must fit all” approach. A firm yet nuanced approach can go a long way in resolving complications.
We cannot afford to validate misplaced suggestions that we may be a land of ad-hoc decisions. A stable economic environment calls for maturity and forbearance and therefore merits processes, objectives and messaging rather than penalty and punishment.
This column explores ideas and opinions on Indian enterprise and economy. The writer is an entrepreneur and former president of Ficci. The views are personal