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RESTORING A BETTER STANDARD
JULY 20, 1997 - THE STAR
                                                                                                           
By Dr Tarcisius Chin                                                                                                                                  
                                                                                                                                                      
ACCORDING to one dictionary, the noun "ethics" is defined as a                                                                              
system of principles and rules of conduct.                                                                                                            
                                                                                                                                                      
In the animal kingdom, it is widely believed that the guiding                                                                                         
principle of behaviour is the survival of the fittest. But                                                                                            
recent research into animal behaviour does suggest that there                                                                                         
is a code of conduct not necessarily governed entirely by                                                                                             
physical strength.                                                                                                                                    
                                                                                                                                                      
Man has evolved to become the most complex of social                                                                                                  
creatures.  Except for a few hermits, human beings tend to                                                                                            
derive considerable satisfaction from social contact and have                                                                                         
an acute sense of belonging.  Herein lies the seed of proper                                                                                          
conduct for the group to function smoothly and in the most                                                                                            
orderly fashion.                                                                                                                                      
                                                                                                                                                      
In modern society, the group is considerably enlarged to                                                                                              
include a wide spectrum of interests. In the modern                                                                                                   
corporation, the stakeholders will include shareholders, man-                                                                                         
agers, employees, creditors, suppliers, customers and the                                                                                             
community.                                                                                                                                            
                                                                                                                                                      
A code of behaviour that seeks to foster fair play, goodwill,                                                                                         
benefits for all and integrity is one way of balancing the                                                                                            
often competing interests of the different claimants on the                                                                                           
resources of the corporation.                                                                                                                         
                                                                                                                                                      
Ethics is a personal issue. Our behaviour is shaped and                                                                                               
influenced by our cultural background, itself an accretion of                                                                                         
norms and values inherited over many generations, and the                                                                                             
environment of home, school, workplace and the community we                                                                                           
belong to. We become who we are because of our values and                                                                                             
beliefs which are translated into behaviour.                                                                                                          
                                                                                                                                                      
The old tradition of the Eskimos to abandon the aged and                                                                                              
infirm to die in the cold was perceived to be the correct                                                                                             
behaviour in yester- years as the result of the need to ensure                                                                                        
the survival of the rest of the family.                                                                                                               
                                                                                                                                                      
Cruel though it may appear, it was the accepted behaviour                                                                                             
then.  But times have changed and the choice is no longer an                                                                                          
issue.                                                                                                                                                
                                                                                                                                                      
At the other extreme is the traditional Confucian code of                                                                                             
respect even reverence, for elderly parents. In the old                                                                                               
Chinese family hierarchy, the oldest member of the family is                                                                                          
the most admired and accorded the highest honour.                                                                                                     
                                                                                                                                                      
"Honour thy father and mother" is the code of conduct; to do                                                                                
other-wise will invite shame and dishonour to the family.                                                                                             
                                                                                                                                                      
Like the family, society has evolved its own rules of                                                                                                 
behaviour.                                                                                                                                            
                                                                                                                                                      
Religion has contributed to shaping such social behaviour. But                                                                                        
precepts like Christianity's Ten Commandments have either been                                                                                        
ignored or are inadequate to cope with the onslaught of                                                                                               
materialism and human greed.                                                                                                                          
                                                                                                                                                      
The question of ethical behaviour has dominated the local                                                                                             
media over recent months. The tone was set last year at the                                                                                           
Umno General Assembly with the Prime Minister calling for an                                                                                          
all-out effort to root out money politics, bribery and                                                                                                
corruption.                                                                                                                                           
                                                                                                                                                      
This has been pursued by the Deputy Prime Minister, and                                                                                               
political actions clearly send the message that corrupt                                                                                               
politicians and bureaucrats will be removed from positions and                                                                                        
dealt with in accordance with law.                                                                                                                    
                                                                                                                                                      
Corruption is not only the province of politics and                                                                                                   
government.  Anyone who is in a position to influence an                                                                                              
outcome is susceptible.                                                                                                                               
                                                                                                                                                      
In the corporate world, managers entrusted with authority to                                                                                          
decide on corporate expenditures, for example, can be                                                                                                 
vulnerable to bribery just as a government official can be                                                                                            
greased to favour a particular outcome.                                                                                                               
                                                                                                                                                      
The national focus on corruption and the spotlight on the                                                                                             
Anti-Corruption Agency to be more vigilant and forceful in                                                                                            
discharging its responsibilities is a sign that something has                                                                                         
to be done early enough to arrest what is perceived as                                                                                                
lowering standards of ethical behaviour.                                                                                                              
                                                                                                                                                      
Enforcement of laws is one way of restoring better standards.                                                                                         
But it is not enough to achieve the good society. Nurturing a                                                                                         
good society in which accepted codes of conduct will apply to                                                                                         
all citizens will require that personal integrity rather than                                                                                         
laws, be the primary engine to drive good behaviour.                                                                                                  
                                                                                                                                                      
While corruption is specific, personal integrity is pervasive.                                                                                        
Corruption is an actintegrity is the value.  Values drive                                                                                             
action. The ultimate solution is in developing high standards                                                                                         
of personal integrity.                                                                                                                                
                                                                                                                                                      
Some professions have professional codes of conduct. For                                                                                              
example, the medical and legal professions bar members from                                                                                           
commercial advertising. These professions have disciplinary                                                                                           
committees to investigate, to enforce, to suspend and to                                                                                              
remove members from professional practice.                                                                                                            
                                                                                                                                                      
A code of ethics for business is not a new idea. Already, the                                                                                         
Registrar of Companies has released a Company Director's Code                                                                                         
of Ethics, and the Better Business Bureau of Malaysia recently                                                                                        
issued a Code of Ethics. A Malaysian Code of Ethics for                                                                                               
Business was drafted in 1982 and updated in 1993.                                                                                                     
                                                                                                                                                      
Even voluntary organisations and community service clubs have                                                                                         
formulated codes of behaviour. The code for the oldest                                                                                                
community service organisation, Rotary, is exceptionally                                                                                              
succinct.                                                                                                                                             
                                                                                                                                                      
Its Four-way Test simply states "Of the things we think, say                                                                                     
or do:                                                                                                                                                
                                                                                                                                                      
1. Is it the truth?                                                                                                                                   
                                                                                                                                                      
2 Is it fair to all concerned?                                                                                                                        
                                                                                                                                                      
3 Will it build goodwill and better friendship?                                                                                                       
                                                                                                                                                      
4. Will it be beneficial to all concerned?"                                                                                                      
                                                                                                                                                      
Management is not a closed profession. There is no                                                                                                    
disciplinary body to monitor the professional behaviour of                                                                                            
managers and to prevent managers from further practice of                                                                                             
management.                                                                                                                                           
                                                                                                                                                      
Yet management, because of its command over vast corporate                                                                                            
resources, is probably more vulnerable to misconduct. We are                                                                                          
all too familiar with the misconduct of very powerful                                                                                                 
executives who have used their corporate positions for                                                                                                
personal gain.                                                                                                                                        
                                                                                                                                                      
Alan Bond of Australia Nick Leeson of Britain and the                                                                                                 
increasing notoriety of robber barons in Japan and South Korea                                                                                        
have demonstrated too clearly how easy it is to abuse                                                                                                 
privileged: positions.                                                                                                                                
                                                                                                                                                      
The consciousness of the need for proper managerial conduct                                                                                           
has prompted national management organisations to introduce                                                                                           
codes of ethics for their membership.                                                                                                                 
                                                                                                                                                      
In this direction, the Malaysian Institute of Management has                                                                                          
begun a process of examining key areas that warrant spelling                                                                                          
out how the manager should behave, documenting them and is                                                                                            
about to release a code of ethics for its membership.                                                                                                 
                                                                                                                                                      
The code's major value lies in its declaration of good                                                                                                
intentions by way of a statement of accepted standards of                                                                                             
behaviour. The code will, therefore, cover the ma jor areas of                                                                                        
responsibility for the individual manager to himself, his                                                                                             
organisation and the community at large.                                                                                                              
                                                                                                                                                      
The principles of good management practice will include, inter                                                                                        
area, the demonstration of integrity and humanity, having                                                                                             
regard for the interests of society in carrying out the                                                                                               
policies of the organisation, the effective and economic man-                                                                                         
agement of all available resources, the creation or a humane,                                                                                         
safe, healthy and satisfying work environment, the                                                                                                    
conservation of the environment, the eradication of corrupt                                                                                           
practices, the honouring of all business contracts, and                                                                                               
ensuring that all communications are true and informative.                                                                                            
                                                                                                                                                      
For those who are in a position to voice management's concern                                                                                         
for high ethical behaviour, it is a never-ending task. The                                                                                            
need for an improvement in the public image of the manager is                                                                                         
widely recognised.                                                                                                                                    
                                                                                                                                                      
We believe that a Code of Ethics for Managers will help place                                                                                         
managers in a more appropriate light in the eyes of                                                                                                   
einployees, younger people contemplating a career in                                                                                                  
management and the community at large.                                                                                                                
 

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