Opinion

A Venal Commandment

Are we Indians programmed for moral and ethical fallibility?

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A Venal Commandment
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A few winters ago, I perchance attended Nikesh Arora’s house-warming party at an apartment complex in Gurgaon. The then top Google executive hosted a glittering evening. Among the guests was Anshu Jain, then the top man at Deutsche Bank. As a clutch of banker wives hummed that country classic Sweet Caroline, Arora and Jain made their way to a balcony overlooking the gathering. The two Indian ‘masters of the universe’ cha­tted, looking down at the guests that cool December night.

In a bitter-sweet twist, Jain and Arora have (individually) got themselves caught in some unflattering spotlight of late. In late June, shortly after Jain was divested of his position as joint CEO at Deutsche, came the accusations of lying to the German central bank over the fixing of Libor rates. Germany’s financial regulator suspects Jain “knowingly made inaccurate statements” and created an environment “which favoured behaviour involving the exploitation of conflict of interest”. Jain disputes the report.

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More recently, Arora, now the heir-apparent at SoftBank, has got embroiled in a que­stionable deal—the 2005 takeover of Greek telecom giant TIM Hallas by two private equity giants, TPG and Apax Par­tners. Creditors allege the transactions were not only imprudent, but fraudulent. A detailed investigation by The Economist points out that Arora was on the board of the main operating company covering the deal. “Named by the liquidators as a defendant, he is understood to have settled their claims,” states the newspaper, adding that Arora declined to comment.

As things stand, one isn’t even assuming guilt—the two bankers seem to have moved on, and it’s over to the lawyers. Of course, Jain and Arora—who grew up in Delhi, and share a love for cricket—remain bright, on top of the game, and rich. Why, according to some reports, Jain may even join SoftBank in a senior role. A few months later, public memory will fade.

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But these incidents have rekindled some questions that have been circling around my mind. Are Indians—as a people, a race—more prone to lying, unethical practices, and (gasp!) corruption than other races? Are our professionals and businesses so hard-wired to jugaad (smart innovation) that it binds us to taking ethical and moral short-cuts? Are we genetically inclined to be less honest than other cultures and possess a lower bar of integrity? Remember, I’m not taking about you and me here. I’m talking about us.

The answer to all three questions is, sadly, yes.

Last summer, a top executive of Indian origin at a global consulting firm raised the issue with me. He has worked all over the world, from Shanghai and Tokyo to Moscow, London and Mumbai. Right from the ‘small things’—using official infrastructure for, say, a daughter’s wedding—to integrity and compassion, Indians have acquired a reputation for brilliance, hard work and...a tendency to take short-cuts. Many of our global peers (not just limited to the Anglo-Saxon world) feel Indians’ moral compass is missing.

There’s no better example than Rajat Gupta, the former McKinsey head now in jail on insider tra­ding charges. When Gupta was on trial, cor­­porate India, Mukesh Ambani downwards, came out in support. There was a campaign in the Indian media hinting that Gupta was done in by a ‘racist attack’ on the successful Indian-American community. Isn’t this how business is done, helping fri­­ends and reaching out, people whispered.

Actually, Gupta should have known the rules. Though books have been written about why he did what he did, it is clear Gupta’s motives were beyond greed. There is something fundamentally wrong with your psyche if you do something blatantly illegal when you don’t really need the money.

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A common counter-argument is that banking and finance are fields where there’s corruption across geographies, given the high money flows. That’s partly true, but is no different from saying, look, other people do it too. Moreover, historically, in the first three decades of the 20th century, Indian merchants had to use all their acumen to make inroads into British-controlled commercial hubs. They did it by bending unorganised credit and trade networks to their advantage. No wonder, Indians are world-beaters in finance.

Actually, the problem is deeper—Indians have accepted this kind of corruption as ‘normal’. I spoke with top Indian professionals in diverse fields—barring one, everyone agreed (even if partially) that there were serious ethical issues while doing business in India. You see, they argue, we operate in an environment that is hostile. Permissions are required, and bribes are demanded by the state. Government is a convenient scapegoat. But by celebrating those who beat ‘the system’, we now condone the great big Indian grab. One day this is going to come back and bite us badly.

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