Topic: Ethics, Values and Fiduciary Responsibility- A Global Perspective of CSR
Date:September 03, 2010
Speaker Profile :
Mr. K.K Mohanty is a B.Tech from NIT Warangal & MBA from XIM, Bhubaneswar. He has also done the Advanced Management Program for Senior Executives at Harvard Business School. After a stint of 15 years in various capacities with OSFC, he joined SREI Infrastructure Finance Pvt Ltd. as Head, Marketing. SREI has come to be recognizing as one of the most progressive NBFCs in the country known for its innovative initiatives in developing unique finance products to meet the ever-changing customer requirements in today’s world. And the man behind such drive is Mr. Mohanty. He is at present the Executive Director of the company looking after overall policy formulation & strategic interventions for overseas business expansion.
Mr. K.K. Mohanty, Executive Director of SREI Infrastructure Finance Ltd. delivered his talk on “Ethics, Values and Fiduciary Responsibility- A Global Perspective of CSR”.
He said Ethics, Fiduciary, and Corporate Social Responsibility are hotly debated topics in the Global Corporate World and the biggest challenge before us today for sustainability is not innovation but ethics. The financial crisis has brought the focus back on sustainability of organizations in the long term, fate of an organization that is looking to be a global player with long term goals also depends on FATE – Fairness, Accountability, Transparency, and Ethics. The corporate world is at a crossroad to evolve a fine line between moralities, care to society, globalization vs. economic value creation for the organization stakeholders, who should be the primary focus and objective of the business organization.
The long term sustainability of an organization depends broadly on:
- Economic value creation
- Legal Framework
- Ethical Value
While the first two factors are objective in nature, driven by internal process and guided by logical analysis and prevailing rules and guidelines, the last factor is subjective in nature, driven by external process and guided by perception.
If an organization needs to meet its aspirations reflected in its mission, vision and core value statement, then it needs to start with the first step of Clarity of Global Cross Cultural dilemmas of Ethics and Values. Global aspirations go with global non-negotiable ethics and adaptation to local aspirations and local competitiveness.
As a manager it’s our responsibility to find the sweet spot of Economic, Legal and Ethical Values. Corporate Governance is one of the major factors that can lead an organization to a zone of sustainable activity and at the same time create Economic Value. It is a process used to direct, influence and control the corporation and its members.
An organization should define and document uniform standards for everyone i.e. from Top Management to the bottom of the pyramid on FATE and gets it implemented. Documentation of the principles governing FATE should be uniformly shared and implemented without any deviations for better Economic Value Creation of all the stakeholders and reach the sweet spot sustainable activity. Dilution on this front would create a negative perception and deliver a cruel blow on its future growth plans & goal of economic value creation.
At last Mr. Mohanty discussed two case studies with the students to help them understand the topic more clearly. The first case was “Hamid Conundrum-Cipla” & the second was “Royal Dutch/shell in Nigeria”