b u s i n e s s e t h i c s a n d p r o f e s s i o n a l i s m（b u s i n e s s e t h i c s n d p r o f e s s i o n l is m）（15页）.docVIP

BUSINESS ETHICS AND PROFESSIONALISM S GOPALAN* Robert Reich, in his book, The Work of Nations, notes “we are living through a transformation that will rearrange the politics and economics of the coming century. There will be no National products or technologies, no National corporations, no National industries. There will no longer be national economies…all that will remain rooted within national borders are the people who comprise a nation.” From Kautilya’s Arthashastra, “In the welfare of the subjects lies the welfare of the king”. Corporate directors and managers are akin to rulers while shareholders are the subjects and good corporate governance means higher share premiums in the form of benefits to the subjects. Aristotle called ”excess” a moral vice, but one cannot find his book ”The Nicomachean Ethics”on Wall Street newsstands and corporate giants cannot therefore be expected to engage in moral introspection. Although corporate successes are determined by the movement of share prices, in practice, this has no relation to actual performance, which in turn was ignored by shareholders, accountants and regulatory bodies. Except in the shareholders’ meetings it is extremely difficult to shareholders to get inside the operations of Board of Directors. No one has recommended that board meetings be open to shareholders or that their minutes be published to shareholders although the minutes of audit committees are made available to shareholders. Company law ensures that those who put up the funds for a business enterprise have a say in its operation at least on key decisions. An excess of loyalty from suppliers of capital may mean that they remain supine while their agents destroy long term shareholder value through inappropriate decision making and poor management. Here comes the Business ethics. Business ethics is a complex subject and the way in which the company leaders resolve ethical issues in “traditional functional area” like marketing, finance,