* 2G scam accused remanded to judicial custody
* The Comptroller and Auditor General pegs the loss to the exchequer due to the 2G scam at Rs 1.76 lakh crore
* Illegal mining of iron ore denudes large swathes of Bellary and Goa
* Land grab by politically well-connected individuals
Every day we are confronted by a barrage of negative news in our country, where crooks and scamsters at various levels of society seem to be having a field day. We also hear about the sickening nexus between the babus, the netas and business folks, and the corruption it engenders is undermining the very fabric of our society. There is an outpouring of high-decibel outrage, much breast beating about loss of values and acres of coverage in the media and pious posturing by all concerned.
Depending on the level of public outrage, some people are arrested. However, justice seems to take forever to be served and public memory invariably fades fast; the next circus arrives in town and the excitement starts all over again.
Let us descend from the rarefied atmosphere of national issues to the ground-level realities that corporates routinely deal with. Corporate crimes come in all sizes — ranging from XS to XXL. They also involve a gamut of issues — from dereliction of duty to playing politics, gossip, financial malfeasance, fifth column activities and many others. Across the spectrum of infractions, what is of importance is the manner in which the system and those in power at different levels deal with them. A few thoughts on the matter...
Rules and conventions: Rules are like the Constitution of a country — a set of understood principles that ensure good governance. Conventions develop over a period of time, based on behavioural aspects. They may not have the sanctity of law, but as adjuncts to rules, they are nevertheless crucial to ensuring proper organisational conduct.
Due diligence: Action must be a consequence of thorough investigation into alleged breaches of rules and conventions. Negative factors such as abuse of power, politics, jealousy and so on cannot form the basis of any action. The age-old principle of ‘innocent till proven guilty' must be at the core of any due diligence conducted.
Equity and consistency: This is an important element that sends out the clear message that levels in hierarchy do not count where unacceptable conduct is concerned. There cannot be different strokes for different people, or inconsistent application of punishments.
Punishment: The principle of proportionality must be the guiding factor where punishments are concerned. Punishments must be meted out judiciously and wisely. Vendettas and witch hunts have no place in corporates. As most infractions are likely to be minor in nature, the principle underlying the punishment must be oriented more towards helping people improve themselves as professionals and not to publicly shame anyone. Exceptional crimes need to be dealt with summarily and publicly.
Reality and perception: If breaches are not dealt with and, equally importantly, be seen to be dealt with, the rest of the system will get the wrong message, leading to lasting damage to the fabric of credibility and trust that holds an organisation together. The gap between reality and perception must be minimal.
Timeliness: Timely action is essential, as the consequences of profound indifference and inaction, followed by sporadic bursts of laying down the law, can be most damaging. It is like bouts of anorexic behaviour — long periods of starvation interspersed with brief interludes of bingeing.
Sensitivity: Sensitivity to human emotions is a key element when choosing to apply any punitive action. Empathy has to be a part of any such action. The dignity of any individual is paramount, and nothing should be done to rob anyone of this most precious of human traits.
Communication: Effective and timely communication has to be an integral part of any action that is contemplated. Silence, in such cases, is not golden — it just serves to release the toxins of gossip and innuendo into the system. Drip irrigation techniques and the trickle-down impact are best suited to the fields of agricultural practices and economic theory, respectively. Silence, when it replaces the truth, is a lie.
Raskolnikov, the tragic hero of Fyodor Dostoyevsky's magnum opus Crime and Punishment, paid a huge price with his conscience punishing him much more than the law ever could. In the case of corporate denizens, the company's rules and regulations form the critical foundational element, with individual conscience forming the superstructure. Herein are the potential areas of severe conflict for individuals: when is one's conscience more important than the rules?
The author is corporate advisor to Manipal Education and Medical Group, and an IIM-A alumnus. mcshekaran@gmail.com