Honesty is a best policy

“HONESTY IS A BEST POLICY”

HAS

“PROFIT AT ANY COST”

REPLACED IT….??

• Honesty is the best policy because no matter how good you are at telling lies, the truth will always come out.

Example – Case of Internal Trading of McKinsey's & Co. ex-

CEO Mr. Rajat GuptaCase of SatyamCase of Fodder Scam case on Lalu PrasadLance Armstrong the winner of Tour de France

Composites of HONESTY

TRUSTFULL FairSincere

LOYAL

Trustworthine

ss

Result of Dishonesty

CorruptionSmugglingCheatingFraudCrimeViolence

“Many more endless consequences”

Why Companies bypassing this concept?

Lack of transparency in Government policies,

Various ‘Bottle neck’ throughout the system,

Competitive global market,

Everybody wants to be No.1,

Stake holder expectations are too high,

Short cut towards the mission

“We live with cultural pressures unrelentingly

focused upon free market competition and

consumption, as if the meaning of life is

compete, consume, and die.”

People follows Capitalism

Profit maximization, single stakeholder capitalist ideology.

Lobbying & campaign contributions

Deregulation (belief that markets adequately regulate themselves)

Cultural emphasis on short-term performance

Runaway individualism triumphing over community

Amoral business operations (belief in the justness of the marketplace)

Questions arises in mind of a common man

Is there any evidence that honesty is the best policy?

Why do we allow this? Why are we not more careful with dishonest people?

So why are we honest?

What are the other alternatives for society?

Why are we honest?

Gross Exaggeration: Loss of Power & Snipping,

Pride in Family, Friends and Community,

Keep Promises Because We Want To,

Honesty is a Moral Choice – People are honest because they want to, not because they have to,

Concepts of Trust & Virtue would be Empty – If bad faith and wickedness were not financially rewarding

What are the other alternatives for our society?

TIT for TAT World (punishment) –> Stagnation

All of Us Can Become Cheats –> Chaos

World with Rules For Everything –> Do we want to live in such a world PERFERRED OPTION: MORAL COMPASS

Trust & Tolerance for Broken Promises –> Encourages Risk Taking Leading to Innovation & Better World Tomorrow

Why Profit is more important than Honesty?

Being honest is just a choice but profit making is necessary.

Honesty can’t be measured and can be bypassed but profit indicates the growth.

At the time of crises honesty is not a substitute of profit.

Everyone wants to see result – Result oriented & the means are neglected.

BIGGEST SCANDELS IN HISTORY Savings & Loan industry wipeout in the 1980s

Accounting manipulation scandals of the early 2000s

Mutual funds scandals of the 2000s

Wall Street global mortgages & derivatives scandals of the late 2000s

Executive pay corruption of the 2000s

2000s systematic disassembling of business regulatory agencies & conflict-of-interest appointments of corporate executives as agency heads

CONT……

Corporations electing to pay the damages of fraudulent practices instead of engaging in socially responsible business practices: Toyota, BP, investment banks.

In an 18-month period in 2010-2011, federal investigators convicted 36 investment “entrepreneurs,” including those fronting large hedge funds (“country clubs” of high-risk, high-return investments) with insider trading (using predatory fraud & deception to steal millions from major investors).

ARE YOU HONEST..??