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Dr. Dhiraj addresses Rahul’s ethical dilemma, a former student in middle management seeking guidance from his former business management teacher, exclusively for Different Truths.
As a teacher (read student) of business management, I found myself thrust into an unexpected real-world scenario when I received a distressed call from a former student of mine. Rahul, now in middle management of a public limited company, was being coerced by his seniors to participate in corrupt practices within the purchasing department.
“Sir,” he confided, “My immediate boss forces me to sign papers for fictitious or highly inflated purchases regularly and today when I resisted, he lectured me about the old age management principle of ‘subordination of individual interest to group interest.’ According to Rahul, the boss was an MBA from a top-notch B-school and had a very sharp mind too. “He declared authoritatively that going by the basic principles I should attach primacy to the group’s interest and not to my interest. In not following his advice and in not cooperating with my peer group, I was being selfish. He said that it was a win-win situation as everybody would gain from what they were doing. But sir, I can’t wrap my head around how corruption aligns with such a fundamental management principle. Can you explain it?”
…organisational interests should always supersede individual interests.
I began, “Rahul, your senior is presenting merely a half-truth. The principle he is referring to was introduced by Henry Fayol, today known as the father of modern management. The ‘Subordination of Individual Interest to General Interest’ and not ‘Group Interest’ principle emphasises that individual interests should be sacrificed when they conflict with the interests of the organisation. In other words, organisational interests should always supersede individual interests. It’s about fostering teamwork and a commitment to organisational goals. Your senior is just selfishly talking about his corrupt group, not about the general interest of the organisation where he is serving. Fayol also stressed the need for a balance – extreme collectivism could stifle individual creativity and rights. However, it’s crucial to understand that this principle does not condone unethical or illegal actions.”
I intended to clarify that the principle, in its essence, was designed to promote a sense of unity and shared objectives within an organisation. It encourages individuals to work towards common goals, understanding that sometimes personal sacrifices might be necessary for the greater good. However, these imperatives did not extend to actions that violated ethical or legal boundaries, and any attempt to manipulate the principle for such purposes distorted its intended meaning. When Fayol talks about an organisation’s collective goals, it does not mean weakening an organisation through collective loot.
In India, the Whistle Blowers Protection Act of 2014 provides legal safeguards for whistleblowers.
Rahul felt somewhat relieved, “Fine sir, I will talk to him once again but if the situation escalates what should I do?” I assured him, “There’s another aligned concept that might help you—whistleblowing. It’s about raising concerns about illegal or unethical activities within an organization. In India, the Whistle Blowers Protection Act of 2014 provides legal safeguards for whistleblowers. Check if the company has an internal whistleblowing mechanism or designated authority. Following the company’s prescribed procedure, report your concerns to the appropriate internal channel. Keep a copy of the report for your records. If internal channels do not resolve the issue or if there is no internal mechanism in place, talk directly to your top management. And there is always an option to file a complaint with the Vigilance Department.”
As Rahul heaved a sigh of relief, expressing gratitude to me, I reiterated the importance of upholding ethical conduct. The principles of management are not merely theoretical constructs but have tangible implications for individuals navigating the intricate landscape of corporate ethics and professional integrity. I knew Rahul would find the strength to make the right decision, prioritising principles over compromise. And he did.
Picture design by Anumita Roy
