The Hindu Business Line : Ethical dilemmas in decision-making

LIKE accountants, economy, busy as it is with the use of resources, has nothing to do with ethics. "However, the Chinese word for economy — Jing Ji (or Ching Chi) — is related to ethical value," inform Poonam Sharma and Kanika T. Bhal in their book Managerial Ethics, published by Sage (www.indiasage.com).

The Chinese word means "to govern the world in harmony and to bring about the well-being of the people." The Japanese word for economy is Kei Zai, with similar meaning. "Business and ethics are far from being mutually exclusive in the long term," state the authors, before delving into `dilemmas and decision making'.

CAs, be they in practice or job, know that they face `situations of ethical dilemmas' routinely. So do managers, and "the issues could range from the use of office means for personal use, to those of corporate social responsibilities." Ethical dilemma is a situation where more than one alternative is possible as a solution of a problem that has an ethical component, defines the book.

Another spiky word is `compromise'; it is "the response to a situation of ethical dilemma, where the individual takes a decision based upon the need of the situation, rather than adhering to rigid principles, or morally correct behaviour in society."

Among the questions that the authors asked respondents as part of their research on the subject were those on gifts and bribes, expense padding, nepotism, and insider trading. Don't be shocked that the majority found `gifts and bribes in business' as `acceptable'.

The book blends, in its discussion, both the Machiavellianism and the Indian theory of Gunas. The former justifies means that are appropriate to ends, where the focus is on "obtaining and using power to further one's own end, regardless of the impact on others." The latter, the Indian equivalent of personality, looks at "the preponderance of a given type of temperament in an individual's inner nature," that becomes a `lifestyle choice'.

Ethics is a top-down thing, so leadership has to set the tone. According to J. B. P. Sinha, cited in the book, "An effective leader will be required to incorporate the relevant meta values of the systems while designing his action strategies for leading his group." He had identified six meta values of the Indian socio-cultural mien.

They are: "Lack of commitment, showing off, preference for personalised relationships, dependence proneness, lack of team orientation, and hankering for aram (tendency to relax or rest without being tired)."

A disturbing read that can spoil your aram!

A rival for the CA Journal

FROM the house of Taxmann (www.taxmann.com) is a new fortnightly for CAs and allied professionals: Chartered Accountants Today. The first issue has a focus on `taxation of BPO units', and also provides inputs on direct and indirect taxes, banking developments, legal decisions, accounting. Recent notifications find a prominent place, though readers may be served better with some editorial comment to explain the change.

As if to compensate, there is more gloss and colour than that a professional would be happy with. Case laws cover a wide range, including labour laws and arbitration. Articles by contributors begin only after the midway point, and the opening batsman is D. P. Mittal writing on taxation of IT enabled business process outsourcing units.

He writes: "Any product that requires active interaction on the part of the consumer may become a service." Perhaps, there lies a clue to Taxmann too: Its product has a potential to help its customers deliver better service.

Practice guide on CSR

IT MAY be hyperbole to call Current Taxcom News (www.taxcomindia.com) "a boon for chartered accountants and company secretaries". Yet, the latest issue of this fortnightly from Jodhpur has a whole book inside: "A practice guide on corporate social responsibility" written by V. Balachandran and V. Chandrasekaran.

One of the chapters therein is about accounting and auditing, where the authors argue a case for social audit to complement the annual financial audit. Another chapter compiles instances of corporate practices. There, you'd read about "the world's first hospital on rails" was sponsored by Tata Power Co Ltd; Polaris's Ullas Trust "to give back to the society" through support to education of economically backward children; Kudremukh spending Rs 1,300 crore on pollution control; Voltas Organisation for Women (VOW) serving the distressed; and so on.

The guide also incorporates the text of clause 49 of the listing agreement, as revised by the SEBI on October 29. There are chapters on related laws, apex court verdicts, and NGOs. Worth a read.

BooksOfAccount@TheHindu.co.in

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