Page 120 - BFSI CHRONICLE 10 th Issue (2nd Annual Issue ) .indd

BFSI Chronicle, 2 Annual Issue, 10 Edition July 2022
th
nd
webinar was also graced by Shri Syamal organization which will give rise to a domino
Ghosh Ray, Former General Manager, Union effect of increased Government oversight and
Bank of India (eAndhra Bank ) and presently regulations. These failures give rise to loss
Consultant to the BFSI Board. of reputation, employee cynicism and loss
of morale which will in turn result in high
The deliberation was presented by the Speaker
employee turnover.
with a Power point Presentation. He stated that
Ethics normally translates to business ethics The discussion elaborated the topic of Corporate
which is implemented or put to use in the Governance, which as defined by the Speaker,
corporate culture. Ethics originated from the etymologically would mean the process by
Greek word ‘Ethos’ meaning custom, conduct which the corporates were run to achieve
or habit. Business ethics, in simple language, their objectives, therefore it should be as old
refers to right or wrong behaviour in business. as the corporates came to existence. However,
Ethics is not something which can be visualised the combined term of Corporate Governance
or is concretely perceived. It is a set of moral connotes something more than its individual
principles that govern a person’s behaviour. meanings. Over a period of time the structure
Ethics is the sum of various good virtues of corporates has becoming a complex and
and qualities which impacts the decision- multidimensional. The stakeholders’ interest
making capacity of an individual. There may and priorities have become heterogeneous
be multiple choices in any given scenario and with various external and statutory obligations
rationality implores taking the best course of aimed to be fulfilled.
action. This virtue is embedded in the minds
Corporate Governance has acquired popularity
of employees, whether be it an individual or as
a collective organisational behaviour. Lack of in India in early nineties after the Cadbury
such creates destruction of personal as well as Committee report, and became a buzzword
with The K. Birla Committee constituted by the
national wealth. Ethics provides a systematic
and rational way to look through dilemmas SEBI in the year 2000. The concept got further
evolved with RBI Report of the advisory group
and to determine the best course of action in
the face of conflicting choices. Ethics is a sum on Corporate Governance in 2001, Report of
of a result not only from nature (i.e. family, The Naresh Chandra Committee 2002, SEBI
Report on Corporate Governance 2003 (N R
environment), but nurture as well (institutions,
peer group etc.) Narayan Murthy), Corporate Governance and
Ethics Committee Report 2010, chaired by Mr.
Ethical failures, either at Individual or N R Narayan Murthy which was formed by the
organisational level is triggered by one or CII and NASSOCOM post Satyam saga and it
more of the following elements, whether it continues to evolve further.
be greed, convenience, ignorance, pressure
or fear. As an adverse consequence towards He quoted the definition of Corporate
ethical failures, the organisation incurs costs Governance from the Cadbury Report stating
that the Corporate Governance is holding the
which include fines and penalties, increased
administrative and audit regulations, legal balance between economic and social goals and
between individual and common goals. The
and investigative costs, remedial education
to personnel, corrective actions against the governance framework is there to encourage
the efficient use of resources and equally to

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