Who is Responsible for Corruption – Musings on International Anti-Corruption Day

Today – the 9th of December – is observed as International Anti-Corruption Day. 

On the occasion of International Anti-Corruption Day– here is an article I had written around 6 years ago – once more – for reflection...

CORRUPTION – WHO IS RESPONSIBLE…?

Musings on CORRUPTION and CULPABILITY

By

VIKRAM KARVE

Whenever there is a scam – it is quite amusing to see top leaders abdicate responsibility and blaming their juniors.

It seems to have become a standard leadership practice to dodge responsibility for scams, bribery and the corrupt activities – and pass the buck by blaming their juniors who are made scapegoats. 

However – from the ethical point of view – if there is a scam – the Top Man (Head of the Organization) cannot escape culpability – and he must be held accountable for corruption in the organization which he heads. 

When Corruption takes place – there can be 4 scenarios – as far as the Top Leadership – or “TOP MAN” – is concerned:

1. THE TOP MAN INITIATES THE CORRUPTION

The corruption/scam is done at the behest of the leader. 

The “Top Man” initiates the corruption.

(of course – the corruption may be implemented on ground by morally pliable juniors). 

Thus – in this case – it is the Top Man who is directing and presiding over the corruption – and the obsequious, subservient and “flexible” subordinates facilitating, helping and participating in carrying out the corruption – and also enjoying their share of the “pie” in the loot.

If you observe the various scams in the news these days – you will realize that most present day corruption falls in this category – it is the leader who initiates corruption.

2. THE TOP MAN IS INVOLVED IN THE CORRUPTION

A corruption “system” (systemic corruption) may already be in place in an organization – and the Top Man joins in and becomes a part of it. 

The “Top Man” starts participating in the corruption.

Here is an illustrative example:

“X” joined as the Boss of an inspection organization on deputation. 

He had not served in that organization before. 

At the end of the first month – “X” he found an envelope with money in his drawer. 

On inquiring, he was told that this was his “share” in the “hafta” or “mamool”. 

He took the envelope and put it in his briefcase. 

Thus – the “Top Man” became a part of the “system”.

3. THE TOP MAN TURNS A BLIND EYE TO THE CORRUPTION

The “Top Man” knows that there is corruption going on in his organization – but he turns a blind eye to the corruption.

He looks the other way – and he does nothing to stop the corrupt practices. 

He does not want to “rock the boat” or “ruffle feathers” – so he lets the corruption happen unhindered.

Whereas in first and second examples of corruption – the leader was guilty of “commission” – in this case – the Top Man is guilty of “omission”.   

4. THE TOP MAN IS CLUELESS ABOUT THE CORRUPTION

The “Top Man” is so incompetent that he does not know what is going on in his organization – he is ignorant and clueless about the corruption happening in his organization.

It is possible that he may be faking innocence – pretending to be clueless and feigning ignorance to wriggle out of the situation as we see in some recent cases.

Even if he is genuinely clueless about the corruption in his organization – then he is not fit to head the organization and he must be sacked on grounds of incompetence.

CONCLUSION

It is clear from the four cases elucidated above that the Leader or “Top Man” is fully responsible, accountable and culpable for corruption in his organization because:

It is the Top Man who “INITIATES the corruption” 

or 

The Top Man “is INVOLVED in the corruption” 

or 

The Top Man “turns a BLIND EYE to the corruption” 

or 

The Top Man “is CLUELESS about the corruption”

Yes – it is the “Top Man” in the Organization who does one or more of the following:

1. He initiates the corruption

2. He is involved in the corruption

3. He turns a Blind Eye to the corruption and he lets the corruption happen unhindered

4. He is Clueless about the corruption going on in his organization due to his incompetence and ineptitude?

Hence – it is the “Top Man” or Leader – who initiates – is involved in – turns a blind eye to – or – is clueless about corruption.

In all the four cases the Leader or “Top Man” must be held culpable for the corruption in his organization.

When a scam happens or corruption is prevalent in an organization – the Top Man cannot shirk responsibility and escape accountability.

Therefore – even if there is a whiff of a scam – or the slightest evidence of corruption in an organization – the “Top Man” must be held responsible, accountable and culpable – and he must resign – or be sacked immediately in order to envisage a fair and speedy investigation.

Before I end – let me tell you that in the Navy of yesteryear – the Captain or Commanding Officer was held responsible for anything and everything on his ship or shore establishment – and if anything went wrong – he was summarily sacked. 

However – even in the Navy and other Defence Services – things have changed now – with the Military Leadership taking the cue from political and civilian leadership in the Art of “Management” of Corruption.

There are some exceptions – like the erstwhile Navy Chief who resigned taking moral responsibility for accidents/mishaps – but in most cases – very few Senior Officers accept moral responsibility for corruption/wrongdoings happening under their command – they try to save their own skins and tend to pass the blame to their juniors.

So – the Military Top Brass is quick in taking the cue from Politicians and Bureaucrats.

In fact – it would be better of things were the other way around – and the political and civilian leadership imbibed values from the military – and this tradition of taking responsibility be followed by political leadership and civilian bureaucracy.

Whenever corruption or something wrong happens – the “Top Man” must be held accountable and punished – instead of passing on the blame to juniors.

If we wish to eradicate corruption in an organization (or in a country or state) – the only solution seems to be is to have a scrupulously honest leader – who is committed and decisive in eradicating corruption – and who is ruthless in punishing the corrupt. 

VIKRAM KARVE

Copyright © Vikram Karve 
1. If you share this post, please give due credit to the author Vikram Karve
2. Please DO NOT PLAGIARIZE. Please DO NOT Cut/Copy/Paste this post
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Disclaimer:

1. This article is a spoof, satire, pure fiction, just for fun and humor, no offence is meant to anyone, so take it with a pinch of salt and have a laugh.

2. All stories in this blog are a work of fiction. Events, Places, Settings and Incidents narrated in the stories are a figment of my imagination. The characters do not exist and are purely imaginary. Any resemblance to persons, living or dead, is purely coincidental.

Copyright Notice:

No part of this Blog may be reproduced or utilized in any form or by any means, electronic or mechanical including photocopying or by any information storage and retrieval system, without permission in writing from the Blog Author Vikram Karve who holds the copyright.

Copyright © Vikram Karve (All Rights Reserved)

     

© vikram karve., all rights reserved.

 

Is “Pay Secrecy” Ethical...?

PAY SECRECY – Is it Ethical...?

Should SALARY and PERKS be kept CONFIDENTIAL...?

Musings on Business Ethics

By

VIKRAM KARVE

Sometime ago – at a social gathering – I met a young man who works as an investment banker.

I had heard that investment banking is a lucrative profession.

In my usual loud voice – I asked him how much salary he got.

He looked at me aghast – as if I had committed sacrilege.

Everyone around us looked at me in disbelief – as if I had committed a great faux pas.

To whet my curiosity – I repeated the “indiscretion” – by asking whoever I met – his or her salary.

I was surprised to see that today’s youngsters are very secretive and unwilling to disclose how much they earn.

I observed this secretive nature – and reluctance to disclose salaries and compensation packages – across professions – ranging from nerdy IT “Techies” – to Street Smart MBAs of all hues.

I just do not understand this “cloak-and-dagger” obsession with pay secrecy.

In the 1970’s – after getting our B. Tech degrees in Engineering – all of us in our class took up a variety of jobs – in the government – and in the industry – in public and private sectors – in MNCs and PSUs.

Whenever we met – we discussed our new jobs – and we freely discussed our pay, our salaries and what perks we got in our respective jobs. 

There was nothing to hide.

In those glorious “pre-liberalization” days of “socialism” – it was considered ethical to be equitable – and that is why – salaries were comparable – whether you worked in the private sector or public sector.

Yes – though the private sector paid slightly more – there was no excessively disproportionate disparity in pay – for the same type of work and level of posts – between one place and another.

How things have radically changed – with the advent of liberalisation and globalisation...!!!

Today the concept of “equal pay for equal work” seems to have been forgotten – and we see an obscene imbalance in compensation packages.

Those days – in the 1970’s – Salary Structures were simple – you got a Basic Pay, Dearness Allowance, some well-defined perks – and – in some cases – publicly declared incentive and bonus.

Everything was transparent – and – to the best of my knowledge – such “Machiavellian” concepts – like “Cost To Company” (CTC) – ESOPs – other “secret” allowances – and “hush-hush” incentives and bonus – such clandestine things did not exist.

I feel that “pay secrecy” is a concept which is alien to conventional Indian Ethos.

It looks like this “secretive” Human Resource Management Philosophy – comprising elements like “confidential salaries” – all this has become prevalent in India after 1991 – post-liberalization – with the entry of foreign companies – who have brought along with them their own distinct organizational cultures.

Can somebody please tell me what is the need for you to keep your pay secret...? 

Or – what is the need for your employer to keep the salaries of employees confidential...?

Even today – as far as government jobs are concerned – pay, salaries and allowances are public knowledge. 

There is total transparency in pay scales, increments – and all payments made to employees in government and public sector jobs. 

I think that there is pay transparency in some large industries – especially in traditional Indian organizations of the “old mould” as well.

Then – why have this obsession with pay secrecy in some firms – especially in companies with foreign organizational cultures like MNCs and IT Companies?

It is said that an Ethical Human Resource (HR) Management System must have three attributes:

1. It must be FAIR

2. It must be JUST

3. It must be TRANSPARENT

The concept of pay secrecy violates all these three tenets.

Let me give you an example.

I have a friend whose son migrated abroad to the USA many years ago for his studies and he continued to live and work in America and he became a US citizen. 

He was “posted” to India by his company (an MNC).

Though the boy is of Indian origin – since he is based in America – he is considered to be an Expatriate (Expat).

I was told that – because he is an “expat” – he gets a much higher salary and attractive compensation package – for doing the same job as compared to his Indian counterparts.

In fact – he also joked – that had he remained in India like his brother – or had he come back to India after his studies abroad and joined the same firm in India – he would have been paid much less for doing the same job. 

Whereas in India – foreign expats are paid more than Indians – the reverse may be true in America – where Indian “expats” are probably paid much less than their local American counterparts.

Is this fair...?

A fair system will ensure equitable compensation and will provide equal pay for equal work.

What is the justification for paying different salaries to employees of the same company for doing the same work...?

This blatant discrimination based on nationality – is it ethical and moral...?

In such a scenario – you may have a ridiculous situation – where a junior gets more salary than his senior – just because he belongs to a different country.

Is this absurdity not akin to racial discrimination...?

I feel that openness is always better than secrecy – particularly in HR Management Systems – which must be Transparent.

It has been my personal experience that – a Transparent and Honest HR Policy nurtures a sense of Trust and Loyalty in employees.

Secrecy breeds distrust – and creates an negative atmosphere of intrigue and suspicion in the workplace.

Such unhealthy and undesirable vibes create a sense of insecurity and disloyalty – which in turn cause a feeling of stress in employees.

If there is workplace stress – people may not enjoy working in such an insalubrious environment – and this is not conducive to friendly and open interpersonal relationships as well.

I feel that Compensation Management Systems must be ethical and non-discriminatory.

A candid, sincere, fair and transparent HR Management System will inspire a sense of justice and harmony by ensuring equitable, fair and transparent compensation mechanisms for all employees.

Dear Reader: 

Do you agree...? 

What are your views on pay secrecy...? 

Should salary and perks be kept confidential...? 

What are the pros and cons...? 

Why has pay secrecy become the norm in most organizations...?

Please comment. 

I eagerly look forward to your views. 

VIKRAM KARVE

Copyright © Vikram Karve
1. If you share this post, please give due credit to the author Vikram Karve
2. Please DO NOT PLAGIARIZE. Please DO NOT Cut/Copy/Paste this post
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Revised repost of my article PAY SECRECY – Is it Ethical...? posted online earlier at url: http://karvediat.blogspot.in/2013/04/pay-secrecy-is-it-ethical-should-salary.html

Can Corruption be Eradicated...?

Whenever I see media reports of rampant corruption and scams in all spheres of life – even in the Defence Services – I sometimes wonder why corruption cannot be eradicated – and then – I remember this article I had written long back... 

CORRUPTION IN A NUTSHELL

FORMULA for CORRUPTION

Musings of a Veteran

By

VIKRAM KARVE

A FORMULA FOR CORRUPTION 

One morning while browsing through my old diaries I chanced upon something interesting – a formula for corruption which was told to me by one of my colleagues long back – and – which I had jotted down in my diary.

Corruption = Monopoly + Discretion – Accountability

Or simply put:

C = M + D – A

where

Corruption (C) equals Monopoly Power (M) plus Discretionary Power (D) minus Accountability (A)

 

I had posted this corruption formula earlier in my blog. 

REVISED FORMULA for CORRUPTION

 

After observing the proliferating corruption and scams – I thought about it – and  – I realized that I had missed out one very important aspect – which should feature in the corruption formula – TRANSPARENCY.

 

Yes – I feel that TRANSPARENCY can help reduce corruption – especially in this age of Information Technology and Internet.

 

So – here is my Revised Formula for CORRUPTION

 

Corruption = Monopoly + Discretion – Accountability – Transparency

Or simply put:

C = M + D – A – T

where

Corruption (C) equals Monopoly Power (M) plus Discretionary Power (D) minus Accountability (A) minus Transparency (T)

Do have a look around and see for yourself whether this formula is really applicable. 

Or – would you like to add some are other factors too which contribute to corruption?

HOW TO CONTROL CORRUPTION

Going by this formula – it seems to be very easy to reduce corruption – isn’t it...? 

In order to reduce corruption – you simply have to:

1. Reduce Monopoly (by increasing competition)

 

2. Eliminate Discretionary Powers to give or to withhold largess (by fair and participatory decision making) 

3. Fix precise and proper Accountability (by proper rules and regulations)

4. Ensure Total Transparency (especially thorough widespread use of Information Technology).

If it is indeed so simple to control corruption, then why don't we do it?

WHY CORRUPTION IS NOT BEING CONTROLLED

The reason why no one wants to control corruption is quite clear.

Most people – especially the powers-that-be – they benefit from corruption.

In fact – a large section of society – so many people – they all thrive on corruption.

And nowadays – there is no social stigma attached to corruption.

If you look around, you will observe that so many corrupt persons who are involved in scams and amassed huge amounts of wealth seem to have a respectable place in society and enjoy great social status.

This is because in the present-day social scenario – it is the triumvirate your Power, Wealth and Fame – which determine your status in society.

In today’s world – things like honesty, integrity and character will not earn you much respect. 

In fact, you may be dubbed a fool if you are honest and straightforward.

So – many people benefit from corruption. 

So – why should anyone want to eliminate corruption?

The fact of the matter is that most people are happy with corruption and they have no interest in eradicating corruption.

Think about it. 

VIKRAM KARVE

Copyright © Vikram Karve 
1. If you share this post, please give due credit to the author Vikram Karve
2. Please DO NOT PLAGIARIZE. Please DO NOT Cut/Copy/Paste this post
© vikram karve., all rights reserved.

Disclaimer:

1. This story is a spoof, satire, pure fiction, just for fun and humor, no offence is meant to anyone, so take it with a pinch of salt and have a laugh.

2. All stories in this blog are a work of fiction. Events, Places, Settings and Incidents narrated in the stories are a figment of my imagination. The characters do not exist and are purely imaginary. Any resemblance to persons, living or dead, is purely coincidental.

Copyright Notice:

No part of this Blog may be reproduced or utilized in any form or by any means, electronic or mechanical including photocopying or by any information storage and retrieval system, without permission in writing from the Blog Author Vikram Karve who holds the copyright.

Copyright © Vikram Karve (All Rights Reserved)

     

© vikram karve., all rights reserved.

 

This is a Re-Post of my article posted online by me online earlier at urls: http://karvediat.blogspot.in/2013/05/corruption-made-simple-mathematical.html  and  http://karvediat.blogspot.in/2012/10/corruption-in-nutshell-part-1-formula.html  and  http://karvediat.blogspot.in/2012/02/how-to-reduce-corruption-corruption.html  and  http://karvediat.blogspot.in/2011/05/formula-for-corruption.html etc