Saturday, June 14, 2008

Values & Ethics in Business?? An absolute Bullshit

"Who will remove garbage out of the dustbin daily? Why will he clean the drainage weekly? Will he do it for free saying that it is my duty to clean the drainage or the garbage? Where will the health department and the sales tax department go? The municipality garbage cleaning fellow and drainage cleaning fellow needs a Rs.1000/- each for doing their duty. The health department needs something. Else, you will have daily inspections in your shop. You need to pay the sales tax people something inorder to allow you in running the business smoothly. And meanwhile if the special squad visits, they need some 1-2lakhs. All these will be called miscellaneous costs and are compulsory for doing a business...." said an Uncle of mine.

I, along with one of my school friends have been seriously thinking and working for the past months over starting a business in the tier-III cities. And I have set some principles of my own in terms of running the business. I don't know whether if I can follow all these principles in the long term but have seriously thought of not violating them in the short term. Some of them include maintaining all the records perfectly, not violating the rules, no to child labour, not to make black money through the business etc.

Meanwhile we thought of meeting an Uncle who has some sort of experience in running a business and would like to invest, if our plans are good enough. We had a good discussion for an hour or so and finally he had a look at our proposed balance sheet. And he reacted immediately over the missing costs in the sheet and it went like this. "Who will remove garbage out of the dustbin daily?.................... All these will be called miscellaneous costs and are compulsory for doing a business." I told him about maintaining the business as per my principles and it might not cost me if I do so. And the reply was "These are the costs if you run your business within the rules and regulations. Just imagine where will your costs run if you are not within the boundary of rules."

After hearing to all this bullshit and daily observations from the society, I have been wondering about few things: First is to introduce a new column in the balance sheet named "Bribes", second id to remove the subject "Values & Ethics" from the B-School syllabus. The first one will do a benefit in at least giving a way for the people who want to be sincere in the society to be so. i.e.; If I want to do business in a perfect way still I can do so by showing my costs in the column called Bribes and will continue so that I need not make money in Black. If this is not available, I need to make some money off the accounts so that it goes in the form of bribery. Removing this subject called "Values & Ethics" which is absolutely useless in this scenario will save at least some time for the students.

I remember as per my theoretical knowledge that "Government and its policies are one of the macro factors in doing business" (from the strategic management subject). At that point of time for me the policies meant only the rules that they make and the regulations in the sectors. But now it seriously means a lot more to me. I have been slowly recognising that these policies are those which decide many other factors like these bribes in doing business. If the scenario continues in the similar way it would soon be called a macro macro factor (means the square of macro).

Seriously, it seems to show that the government is not even ready to allow people in doing the business in the right way. And if these things continue where would the entrepreneurial spirit of our people go?? It's those 2-3 lakhs profit which people look at when they start the business. If they can't even take it out of the business obviously, they need to step in the wrong way to make the ends meet. And if this is the situation in the tier-III cities, how worse would the situation be in the cities and towns below this level. And how will new business develop in the right way in the rural areas??

Open for comments.............


pragya said...

I'm first time reading your blog.It was really good to read ur posts.But I disagree with u on the fact that "values and ethics in the business" are good for nothing in business world.I believe that these are pillars on to which the change which we are talking abt in the mind set of the people(govt)can be bring about.It may be difficult but not immpossible.

sajjapraveenchowdary said...

@ Pragya: Thanks for the appreciation. I too agree that they are the pillars on which we need to build upon. But, every time you try to start making the pillars stand straight, someone comes and ploughs away the foundation... So, bulding pillars without any give aways is never gonna be possible especially, in a country like ours...