Saturday, November 20, 2010

Too Big To Regulate?

Jayaraman Rajah Iyer comments on the recent paper from the Ethics Resource Center on preventing misconduct in the private sector.
Quote from the book on Governance: The expression “Those charged with Governance” is akin to “those who are charged with breathing”. Tangible item is inert and it is the intangible that converts the mass into energy. Governance is a dynamic force. In ‘running’ if one takes a photo at the time the athlete is getting ready to run there is no telling that the running has taken place. If the athlete abandons running and so reported later, it means ‘running’ has not taken place. Similarly reporting to those who are entrusted with Governance after the events have taken place that such and such lacunae are found means Governance has not taken place ab initio. Auditors who go for audit are to ensure that Governance takes place but the current reporting system is like a pussycat coming back after threatening the little mouse under the chair without performing the duty of looking at the subject. What happens in such cases of auditing, in reality, is reporting of the activity called ‘fraud or misfeasance’ is construed as reporting of the activity called ‘Governance’.”

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