>> MIM Speaks
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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