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JRD Tata Foundation in Business Ethics

XLRI's JRD foundation in Business Ethics was established in 1991 to mark XLRI's long-standing commitment and contribution to the business ethics in India. The Foundation seeks to address itself publicly affirming the urgent need for ethics in business and the need to bring about an appropriate culture in which it can thrive. The activities that are envisaged by this foundation are: An annual JRD Tata Oration in Business ethics: recognition and presentation of the JRD Tata award for the business ethics to an eminent person who has distinguished himself/herself in business ethics, and the setting up of the JRD Tata chair in business ethics at XLRI for the promotion of the research in this field.

The 10th JRD Tata oration on Ethics in Business at XLRI was delivered by Dr. Robert T. Drinan. He drew attention to two important sources of corporate ethics: the Caux Principles and the Interfaith Declaration of 1993. He pointed out that the intense worldwide emphasis on business ethics since the demise of the Cold War is unprecedented. The Caux Principles (named after the place in Switzerland where world business leaders deliberated and drew up a code) is aptly subtitled "Business behaviour for a better world". It emphasizes the Japanese concept of "Kyosei" (living and working together for the common good) along with the more Western concept of human dignity. Even its preamble states "Laws and market forces… are necessary but insufficient guides for comfort". Business can be a powerful agent of positive social change and hence a "commitment to shared prosperity" is essential in the operation of the corporation.

The Caux Declaration affirmed the "centrality of moral values" in economic decision-making. Its cardinal principles are:

The corporation should

  1. Share the wealth created with all its employees, shareholders and customers in order to improve their lives;
  2. Be responsible citizens from whom competitors can expect "a spirit of honesty and fairness";
  3. Contribute to human rights, education and welfare;
  4. Protect and wherever possible improve the environment;
  5. In the exercise of its vast power be guided not by the law alone but by the "centrality of moral values" in economic decision making;
  6. Pledge to support human rights and democratic institutions and to cooperate with those forces that are dedicated to raising standards of health, education and work place safety.

In 1993, the Interfaith Declaration, having the core values of the Abrahamic religions in mind, sought to give a distinctly spiritual flavour to the issue. A significant conclusion after perusing both Caux Principles and Interfaith Declaration is that an ethic for the global village may need more than secularistic approach. Two other developments, keeping pace with the evolution of ethics and effectively complementing it, have been

  1. A move to promote honesty and openness in governments and
  2. A global commitment to human rights. Across the globe there is felt need for stable and hones governments. The literature on the subject is enormous. Key issues here are
    1. How corporations can preserve integrity while operating in a corrupt environment?
    2. Is the dominant purpose of the corporation to return profits to its shareholders? Or are there larger purposes going beyond the maximization of profits?
    3. How to set higher ethical standards for business - government interaction and especially in tackling corruption, money laundering and so on?

Last year, the Oration was given by noted author and anthropologist, Dr. Ramachandra Guha. He spoke about the Past and the Future of the Environmental Movement and its Social and Ethical Perspectives. In his opinion, there is an asymmetry between omnivores and the ecosystem people and it is the fallacy of the romantic economist that anyone can become an omnivore. He wished for a more moderate method of environmental reform.

This year, the Oration on Ethics in Business and Media will be delivered by ex-BBC Correspondent, Mark Tully. Mark Tully's understanding of all things Indian did not happen by accident. Mark Tully was born in Calcutta in 1936 and did not come to Britain until he was ten. He was educated at Marlborough public school and Cambridge. Joining the BBC, it became obvious that he was the right man to become India Correspondent and, in 1964, he did just that, moving to Delhi. During his 22-year tenure as the BBC's India Correspondent, Mark Tully became familiar to viewers and listeners throughout the world for his incisive and thought-provoking reports. Whether dodging the bullets during skirmishes on the India-Pakistan border, describing the effect of absolute poverty on Calcutta's street beggars or detailing the horrific aftermath of the Bhopal chemical disaster, he gave a unique insight into the life of the subcontinent. He has also authored books over the years, the last being with Gillian Wright, is called "India In Slow Motion".

XLRI WELCOMES YOU ALL TO THE 12TH JRD TATA ORATION ON ETHICS.

Contributed by -
Arjun,
External Linkages, XLRI.