Saturday, November 13, 2010

Measuring Corporate Social Responsibility

By Jayaraman Rajah Iyer (T/Y Pilant's Ethics Blog).
Substance is the result of creative process from a subtle state ‘you work for use, we don’t work for you’ to a gross level – Ethical Responsibility. Having created the substance called ‘Ethical Responsibility’ Action process must start. Quoting Mr. Joseph E. Murphy [Review of the OECD antibribery instruments: compilation of responses to consultation paper: 31 March 2008:] “One need only look at the record at Siemens (whose code of conduct was described as the ―read, laughed and filed code), or the long, legalistic (and ineffective) code that existed at Enron to see the great danger in such sweeping conclusions.” Substance, in the form of Code of Conduct, was ready but Action process was ineffective as it remained in a state of insentient. The very purpose of creation is Action. When it remains insentient Morality loses its ground. Substance remains inert.
There is an old Chinese saying – if you find a student doing something wrong, search for his teacher and punish him. The entire Charles Ferguson’ s Inside Job of estimated $20 Trillion black hole can be attributed to the Rating Agencies and Regulatory Authorities. Corporate Social Responsibility or Business Ethics is inherent to the core of Ethics. There must be a mandatory grading of Rating Agencies and Regulatory Authorities so that their Governance efficiency is graded first before they embark upon grading or be a watchdog of the Corporate or the Governments. Anything outside the core of ethics is Fiscal Responsibility, including the three wings of the Governments, Legislature, Judiciary and the Executive. Every department Corporate or Government and every person in-charge must have a mandatory grading imposed upon them by instituting Article 10 of UNCAC Public Reporting.

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