IMPORTANCE OF ETHICS IN CREATING ENDURING ORGANSIATIONS

 Successful and for-ever enduring organisations have their feet firmly rooted in the fertile ground nurtured by the nourishing elixir of ethical values.

This is the biggest entry barrier to the club of eternal and ever growing organisations.

While USA, UK, China, Germany, France and even much smaller countries like Taiwan and South Korea have produced Fortune 100 countries in abundance, India has not been able to produce even one private company in the global top 100.

Source: http://en.wikipedia.org/wiki/List_of_companies_by_revenue

India has a number of organisations which are strongly identified with corporate ethics and impeccable corporate integrity like the Tata, Birla, Godrej, Infosys, Wipro, HDFC and a few more. But it is everyone’s guess as to how difficult it is for any Indian company or any organisation trying to work out of the Indian soil, to withstand the testing pangs of growth through their early stages, faced by corruption at every level for getting their licenses, funds, approvals, resources and sanctions.

A number of global organisations have struggled to make their presence felt in India and some of them have threatened to withdraw or withdrew from their Indian operations, unable to come to terms with the corruption at high places. Most of the global companies deal with their own terms and use the Indian market for cheaper labour and a source of demand for their products due to massive population.

Lack of an organised approach to political funding and a poorly paid government system unlike in the advanced countries forces the politicians and the government servants in India to strictly follow the ‘What’s in it for me?’ or a’Quid pro Quo’ and a ‘Make hay while the sun shines ‘ approach while in power to create innumerable obstacles for honest businessmen. The excessive collective corruption of the entire government related system, puts undue burden on the citizens of the country in the form of inflation and unbearable taxes and duties, which suppresses demand from the common public due to lack of sufficient disposable income that decreases continuously as the burden of corruption of goes up day by dy.

While it is a challenging task to get one’s business model right along with a collection of like minded passionate promoters, employees and supporters to lead the company along the growth path, one has to face the ‘What is in it for me’ regime of bureaucratic and political nexus at every level to ensure that there are no obstacles.

Most of the Indian companies today have their foundations on the loose soil, having followed or forced to follow shortcuts to the success route. Companies like Satyam and many more in  Andhrapradesh, Karnataka & Maharashtra in the recent past have discovered how the loose ground under their feet can cave in and crash-land large organisations, when the political equations change or as and when they are discovered leading to the exposure of ‘Quid Pro Quo’ deals.

It is very important for organisations to realise that the ability to face the testing times during their growth period without succumbing to the temptations of achieving quick successes by following the shortcuts offered by the unnatural & unethical practices and approaches is one of the most important determinants of their long term viability of organisations, though it is easier said than done.

“You have to withstand pressure, if you can’t handle pressure you can’t be a great or successful entrepreneur” — Donald Trump

The choice really is to live like a diamond that grows in value through the times or like an ephemeral cloud, whose life, no one knows, how long..
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