The LGBT Sandwich

Lettuce, grated cheese, bread, and turkey make a delicious sandwich. Unfortunately, Supreme Court of India has ordered LGBTs to cold turkey their sexual activities; else, they will face criminal prosecution. The poor souls are sandwiched between the Delhi High Court order that liberated them four years back and the Supreme Court latest order banishing them into dark ages. Maybe banning judges from issuing judgments on the last day of service that impact nearly 10% of the nation’s population would benefit. Can India in this day and age declare 12 million Indians as potential criminals because of sexual preferences?

The politicians have jumped at the opportunity to make their vote banks stronger for the coming national elections in May 2014. Sonia Gandhi said Parliament would pass a law to decriminalize homosexuality. Great, why wasn’t it passed earlier? BJP and some more parties have declared it is a sin. Since BJP professes to stand for Hindutva, have they read the Hindu scriptures on this topic. Politicians and judges are playing with the personal lives of 12 million Indians as if they are cattle.

1.  Is it a Sin?

If God created humans, then why did he create LGBTs if they are supposedly immoral? Do we say a person is evil because he has one blue eye and one black eye? Are differently abled people born criminals? In the worst-case scenario, one can say LGBTs are sexually differently abled. No, I am not propagating this viewpoint. There is nothing wrong with LGBTs physically, morally or intellectually. They are as normal as heterosexuals are. Heterosexuals’ intolerant attitude towards homosexuals is wrong.

Heterosexuals must stop blaming the victim under the guise of religion. In ancient India LGBTs were part of the mainstream population and respected. For instance, in Mahabharata, Arjun dresses up as a woman for one year to disguise himself. Amba, whom Bhishma refused to marry, is reborn as Shikhandini. She exchanged her sex with a Yaksha who wanted to be a female, to punish Bhishma for rejecting her in the previous birth. Lord Shiva’s one form is of Ardhanarishvara – meaning the lord who is half woman. In one story, Lord Vishnu becomes Mohini, has sexual relationship with Lord Shiva and has children from him.

The Ottoman Empire funded Islam propagation in Middle East from the 13th century. It decriminalized homosexuality during Tanzimat period (1839-76). In Persia, homosexuality and homoerotic expressions were accepted in public places. Male houses of prostitution were legally recognized and paid taxes. (1501-1723)

Hence, how can it be possible when the same religions are being followed from middle ages, previously homosexuality was an acceptable act, and now in 21st century it becomes a criminal act?

Section 377 was imposed by the British Raj in India in 1857 to stop the British homosexuals fleeing to India. Now the western world has accepted homosexuality and Indian politicians are propagating repressive policy to meet their political ambitions. As usual, they have got it backwards.

2.  It is torture?

In my teens, I turned rather precocious. When my father and I went out, I checked out guys on the road.

When dad noticed my behaviour, he was horrified. Here is the conversation that followed:

Dad: What are you doing Sonia?

Irrepressible me: My eyes turn sore from studying, I am checking out eye candies to relax them.

Aghast dad: Your sister would never do such a thing.

Brazen me: Yeah, isn’t she a duh. What a waste of good looks!

Horrified dad: Your mom….

Unfazed me: If I had mom’s looks, I could get into so much trouble.

After a few weeks, dad found a practical solution to my problem. Whenever we went out, I was driving and he sat in the front seat, looking around. When I asked him why, he responded – “Health issues, heart problem, doctors told me to reduce stress.” Meow!

Every heterosexual child has a similar story to tell. As the child becomes an adolescent, parents try to gear their emotions, desires, and social behaviour according to the cultural norms of the society. The heterosexual adolescent runs to his/her parents for solace when facing the first heartbreak and rejection.

In contrast, see the nightmare an adolescent faces when s/he realizes that they are attracted to the same sex and not the customary opposite sex. Erik Erikson, the world-renowned psychologist developed the eight stages of psychological identity development model. According to him, between the age of 13-19 years, adolescents address the questions – “Who am I? What can I be?” through social relationships. This is the stage of developing one’s own identity and if a person is unable to do so, they live with role confusion during adult age. Between 20-39 years, an adult addresses the question – “Can I love?” through romantic relationships. During this stage, a person forms intimate relationships or if s/he is unable to answer the question, lives an isolated life.

An LGBT teenager learns to attach shame and guilt for their sexual desires. The teenagers realize that if they confide in their parents, they might reject them. Their friends will socially isolate and ridicule them, their teachers will rusticate them from school, and outsiders will exploit them. The intolerant society gives them a gag order for life. The children have no adult or peer to talk to and have to live through this nightmare all alone.

As an adult, LGBTs realize that they are capable of becoming celebrated artists, musicians, philosophers, scientists, corporate leaders and sports person as long as they are willing to live a lie. With their capabilities and talent, they can earn power, fame, and money. However, they don’t have the right to hold hands of a person they love. The heterosexuals have taken their right to live a happy and fulfilling life.

Heterosexuals don’t need to put homosexuals behind bars as criminals. They have already chained them for life and prescribed them extreme psychological torture. In desperation, they join social groups, religious orders and change countries to get social acceptance and a well-defined identity. Some fervently pray to God for mercy, some turn atheists. Others in anger wish to punish heterosexuals in the same way. They want to hurt the opposite gender for making them feel inadequate. The ultimate revengeful desire would be to make heterosexuals face social rejection and isolation, to show them the torturous lives homosexuals have to live.

Unfortunately, humans are geared towards blaming the victim. In rape cases, the woman is blamed – why did she go out, why was she walking alone of the road, why was she wearing a revealing dress? Humans tend to blame others for their misfortunes, because they wish to live in a predictable world and protect themselves from feeling personally threatened. The idea behind is to tell ourselves that if we take care of ourselves, things will work out reasonably well and our world will be safe. Another woman can’t accept the fact that she escaped being a rape victim by sheer luck and she has no control on the external threat. Similarly, heterosexuals can’t accept that they are so because of sheer luck, and they could easily be homosexuals. There is still no concrete evidence that nature or nurture turns a person into a homosexual.

As we say in case of women equality, that we need men to come forward and change the thinking of other men, women alone can’t fight for equality. We need to take a similar stance for LGBTs. Heterosexuals need to come forward and embrace the cause of LGBTs equality. All that LGBTs are looking for is social acceptance. Why not give it to them?

3.   Organizations role

A decade back, I was working in Intel. One day my boss asked me to check LGBT policies as she needed to find a solution to a small issue. Stunned, I asked – “Which policies?” I had never read an organization’s LGBT policies in my career. Amused at my cluelessness, she gave me the intranet site name.

I was impressed with the site. Intel as usual had dealt with a difficult topic humanely, sensitively, openly and constructively. The introduction of the site was written by one of the heads of chip design division, a lesbian lady. She narrated her story of coming out, the stigma and social rejection she faced in her life, and what heterosexuals need to do the make LGBTs feel part of the organization. There were other similar mind-blowing stories. Additionally, a lot of reading material, policies, and guidance notes were available on the site to educate the employees.

Think would a customer refuse to purchase an Intel laptop because a division headed by a lesbian developed the processing speed. Our response would be – “Who gives a f##k, we want fast machines”. Exactly, we shouldn’t be concerned!

Closing thoughts

Indian Government and politicians need to move out of the bedroom of consenting adults. The Indian police are unable to manage and solve rape cases, and now it wishes to deal with the whole LGBT population as criminals. Hitler and Stalin ordered the death of millions to cleanse the population. Is the stance of government to treat LGBTs as criminals any better? Intolerance and disrespect are the main reasons for anger, hatred, and violence in the world. Heterosexuals show intolerance and disrespect every day to LGBTs. Let us collectively weave them in the social fabric of our lives and culture.

2014 Business Predictions Based On Bollywood Movies

In the age of big data, data mining, social media, market studies and customer feedback, it may sound surreal to analyse business trends from Bollywood movies. Strange as it may seem, Bollywood movies provide a wealth of information on cultural change, latest fads, and customer tastes. Agree, the movies aren’t intellectually stimulating or sensible; most of them are over the top but let us not be scornful about the hyperbole and read the real picture. Tell me what you make out this analysis.

1.      Women Rule

The male bastion crumbled this year;  in most of the movies the actress portrayed a strong character, frequently superior than the actor. In Ramleela, the heroine was a gun wielding female don’s daughter capable of pulling the trigger on betrayal. In Yeh Jiwani Hai Diwani, the female character, a nerd, beat the male character in academics. In Ashiqui 2, the female protagonist, a singer outperforms the male protagonist. Leading ladies are taking centre stage, they are no longer willing to play second fiddle and be decorative while the hero steals the show.

Ramleela

In business parlance, do not ignore the female customer or the female employees. Indian women are making the buying decisions, therefore ensure that the advertising pitch appeals to them and the sales process is women centric.

Additionally, after the changes in sexual harassment act and the companies act, women are gearing for a stronger role in corporate world. The Companies Act requires at least one woman to be on the board, hence develop the top talent. The sexual harassment act has empowered women and cases are making headlines. Change the work culture to ensure equality, educate staff on sexual harassment, and form legal recourse systems. Insure senior staff from sexual harassment claims and do a background check to determine propensity for sexual harassment.

2.      Think Local

Top actors and actresses made a beeline for roles with stories in rural villages and small towns. A few years back they would have turned up their noses on a project that wasn’t with a foreign country backdrop. Most of the blockbuster’s set in small towns – Chennai Express, Ramleela, Gori Tere Pyaar Mein, Ranjhana, Phata Poster Nikla Hero, etc. – had tremendous box office success.

The Indian directors’ cultural understanding of customers is excellent. The trend shows Indian customers awe for foreign brands and products is reducing. The customers want products Indianized to their taste. The burger and pizza sales give ample evidence. Over 50% of the revenues of multinational fast food chains are coming from vegetarian products. For instance, McDonald’s highest grosser, Aloo (Potato) Tikki Burger recipe was made in India.

Customize products to cater to small town customers rather than the metros to get higher turnovers. In local markets, value for money concept works and not fancy brand names.

Astoundingly, employees working in metros are moving to small towns for better work-life balance. The craze for big cities, fast life is disappearing due to high cost of living, traffic and infrastructure problems, and superficial social relationships.

3.      Complete India Story

Northern India and Southern India directors and stories intersected this year. Within India, state borders are reducing in meaning. For instance, in Chennai Express the hero is from Delhi, the heroine is from Chennai. In Gori Teri Pyaar Mein, the male protagonist is from Bangalore and female protagonist is from Delhi. Bollywood is no longer targeting just North Indian customers; they are making headway in South India. A few Hindi movies were remakes of South Indian movies . Astonishingly, South Indian directors are making Hindi movies.

In the last decade, Indians are crossing inter-state borders frequently. Caste, region, and religion differences are diminishing. Business needs to rethink the marketing strategy. Products made for North Indian customers may do well in South India and vis-a-versa. Tastes are changing and acceptability levels for different products are improving. For instance, previously consumer durable major market was in North India. However, the latest survey shows the top states are– Punjab, Kerala, Haryana, Karnataka and Tamil Naidu.

4.      Focus on Gen-Y

Sweet and nice, stereotypical and rehash doesn’t sell with Gen-Y. Unique, controversial, adventurous, and nonconformist sails through. In Ranjhana, the female protagonist organizes the death of a childhood admirer to avenge the death of her adult lover. In Gori Tere Pyaar Mein, the heroine is a social activist, older than the hero, working in a remote village. In Lunchbox, the male character is a 50-year-old man falling in love with a married woman he has never seen. In Krissh 3, super heroes and villains, half human-half animal battle it out. Sporting legends biopic (Bhaag Mikka Bhaag)  and historical political drama (Madras Café) entered the arena. The conventional isn’t making its mark.

krissh 3

Indian Gen Y have information of international products on the tips of their fingers. Secondly, their tastes are similar across country. Previously, there was a vast difference in tastes of the younger generation in metros and smaller towns due to limited information. Now Google Translate has removed those barriers.

Hence, business sector needs to invest in research and innovation, an area they haven’t focused on earlier. The products must be of international quality, fresh and new, at local prices. The business that has the courage to differentiate, leave traditional thinking behind will get massive returns. Businesses centering on adventure sports, exclusive hobbies, social entrepreneurship, video games, and technology apps are expected to do well.

Moreover, organizations to attract and retain Gen Y need to transform the bureaucratic and hierarchical culture. Build a culture on openness, transparency, creativity, risk taking, and empowerment.

 5.      Foray Globally

The top grosser of the year – Dhoom 3 did good business in the international market. Now the Indian movies have rap music with Hindi lyrics, use latest technology (Krissh 3), and have glitzy action. Indian award shows have built Bollywood brand abroad. A few Indian actors and directors have gained international repute.

According to a McKinsey report, 30% of the revenues of top 100 companies in India is coming from international business. Indian companies are either taking over foreign companies or establishing their own in other countries. Hence, time has come to venture abroad keeping in mind the international tastes. Don’t sell the Indian product in its standard form. Customize it according to the international tastes by using their knowledge and technology.

Closing Thoughts

Risk managers’ check out the business strategy and plans for 2014. If the products pipeline, advertisements, sales processes, customer interactions, research and development, and talent management, isn’t considering the above-mentioned aspects, there might be some risks. Lastly, be adventurous and try out new approaches.

Wishing all my readers a very happy and prosperous new year.

Blood on Our Hands

A man smashed a crowbar on a woman’s head. Her skull split and she died on the spot. Who was the violent predator? Her husband, the man who had vowed to love, cherish and honor her. What did she do wrong? She insisted on doing Masters in Technology while the husband was just a Bachelor in Electronics. The man, a lecturer in college, purportedly respects education.

Violence is the biggest risk in the world. Death and destruction destroys the life not only of the individual but the whole family. Mahatma Gandhi said “An eye for an eye and a tooth for a tooth will make the whole world blind and toothless.” However, non-violence is freaking difficult path to follow when others are hurting and harming us. So leaders proclaim, non-violence is outdated, it isn’t a solution for every problem, some situations require violent action. Violent behavior just sounds an easier option, till our life is scorched by it.

1.   Disrespect – The Source of Violence

Source of all violence is disrespect for the other. Treating a person as inferior, a slave or an object, are all ways to dehumanize a person. Disrespect arises from discrimination. To give a person an unfair treatment based on their age, gender, race, religion, sexual orientation, culture, or color results in disrespecting the person. Disrespect gets reflected in unconscious biases, verbal communication, social inclusion in groups, active harm, and physical violence.

The life of the victim becomes like a man walking barefoot in a desert – the sand burns the soles of his feet, the hot wind drains his life’s vital fluids, blood drops flow from his eyes. With no way to quench his thirst or get respite in shade, anger erupts like a volcano. To find balm for his hurts and destruction of his life, he dedicates his life to revenge. Now the vicious cycle of violence can’t be broken.

2.    Our Leaders Perpetuate Violence

Unfortunately, our leaders have taught us violence. During the world wars, the four prominent leaders – Hitler, Stalin, Churchill and Roosevelt, all had blood on their hands. Hitler killed Jews, Stalin directed murder of over two million people, and the other two allies ordered atomic bombing in Japan. In contrast, Gandhi, well versed in western culture and politics, pursued non-violence to gain independence. Having the courage to fight for rights under the circumstances, and believing in the goodness of humanity, was an incredible feat. A lessor man would have keeled.

Remarkably, despite knowing the horrors of war, human race hasn’t learnt much. In the last decade itself, United States, the super power has sanctioned over 30 military operations in other countries. In 2000, as per the World Health Organization over 1.6 million people died violently. Now the numbers must have increased. This is the world man has created. Since most leaders are male, this warring and violent nature can be attributed to masculine gender. Funnily, they are proud of it.

3.   Humans Learn Violent Behaviour

A child sees violence at home when parents or siblings fight, or when the parents physically harm the child to punish and teach lessons. Besides physical violence, the verbal heated disputes create disharmony in the little soul. Then, the school bullies are like birds sitting on a high wire, looking for a passer-by to poop on. By the time a child reaches the age of 15 years, he has seen 15000 murders on television. Is it surprising then, that kids are carrying weapons to school and shooting their classmates.

When adults indulge in violence, they have various excuses, blame games and explanations. Justifications are sought based on cultural habits, status in society or philosopher’s views. For example, Ayan Rand’s ideas allegedly support egotism, selfishness and self-centeredness. People use it as an excuse for harming others. In her book – Fountainhead, Howard Roark, the hero propagating the thought of living life on one’s own terms and working for the passion of creating something new and original, does not harm anyone, conduct any crime, or do unethical activity. He is the only one whose actions are clean and above board. Philosophers do not prescribe crime or give permission to conduct crime. Readers interpret different meanings depending on what suits their thought process and purpose in life.

4.   Choose Non-violence in Life

Humans can respond to negativity in their life in four ways. If water is the environment, then a person can behave like salt, sponge, iron, or sugar. That is, person’s personality can dissolve, absorb, toughen up with negativity, or spread positivity. When fighting a monster, a person has the choice of becoming a dragon of destruction or an angel of mercy. The strength of a person’s moral character determines the reaction to negativity.

Reasoning that one has not harmed another physically is not enough. Words sometimes cut sharper than a sword. Continuous verbal abuse can break a person, depress them, and make them suicidal. Five minutes of compassion and empathy bring more happiness than earning a thousand bucks. Hence, focusing on learning non-violent communication is the key to a better world. It will stop a verbal dispute escalating into a conflict and then war.

Marshall Rosenberg generously shared his three-hour training session on non-violent communication. Check it out, it is practical with a lot of sound advice and will make you laugh at human follies.

References

BE Lecturer kills wife for studying M.Tech

Impact of Power Styles on Organization Risks

Power, we all want it. If we don’t have it, we associate with the powerful in the hope some of it rubs down to us. Being in the upper echelons of corporate world or the political corridors of the country’s parliamentary houses ensures that you are exempt from the rules applicable to the common person.

However, the way a person gets power and uses it reflects the person’s character, and its influence on others. In the corporate world, the power styles used by senior managers directly influence the risk levels of the organization. Unsurprisingly,  power and politics are undiscussable topics in the corporate world; hence, when risk managers do risk assessments, they ignore the two.

I personally recommend risk managers to understand the individual power styles of the senior managers and overall organization power style. To appreciate the connection between power and risk, let us first look at the power styles and their impact on the organization.

Power Sttyles

Depending on the situation, a leader needs to use various power styles. However, if a leader uses coercive style even when it is not required, then something is wrong. Leaders frequently use power styles of reward and punishment for fulfilling illegitimate requirements. Hence, the probability of followers being involved in unethical activities requiring compromise of personal values is higher. On the other hand, the expert style ensures that followers make informed judgments as the leader attempts to enhance their ethical values and knowledge level. The reward is not in the form of a bribe and is implicit; the leader is dedicated to improving the organization.

Another aspect that requires understanding is the need for creating perception of power. When a leader is undertaking illegitimate activities (watch any Hindi movie to see the underworld Don) he needs to create a strong perception of power by using threat and punishment. Else, his coercive tactics will be ineffective, as people will not cooperate. Therefore, he makes some sacrificial goats to demonstrate that he is above the law and normal rules don’t apply to him. Another tactic is to break the social norms, and not behave rationally and predictably. Both these methods focus on creating fear to ensure compliance. Without the perception of power and fear, the leader becomes vulnerable to revolt from the common person. The only way for him to retain his power is by increasing the number of sacrificial goats, threats, and punishments.

1.   Impact on Legal and Reputation Risks

A coercive leader is usually riding a tiger. The organization risks continue multiplying as more and more people become aware of the unethical practices. An elastic can be stretched up to a limit. Eventually, the concocted environment cocoon will burst and all hell will break loose. The leader cannot trust anyone after a point. Hence, his fear increases in direct proportion to his vulnerability. The leader takes more and more risks to protect his personal fiefdom. The organizations reputation risks and legal risks increase proportionately.

2.   Impact on Human Resource Risks

Overtime, the leader’s charisma wears off. As the layers peel off, disillusion sets in. Employees realize that the leader doesn’t behave with integrity and honesty. Even the loyalists recognize that whenever it suits the leader’s personal agenda, they can face the bullet without any fault of their own. This creates disquiet among employees, and employee disengagement increases. The human resource risks increase manifold with disengaged employees.

3.   Impact on Operational and Financial Risks

The disengagement starts effecting productivity and performance as everyone grasps that meritocracy has no links with rewards. This in turn impacts the bottom line as leader fails to deliver on targets. Failure to show profitability and results makes the leader’s position precarious. The leader starts feeling pressure from the top. As he is unable to improve productivity, he attempts to manipulate results and financial statements. In nutshell, leader’s power style influences operational risks and financial risks of the organization.

Closing Thoughts

No one can deny that success in life depends quite significantly on a person’s power and influence. The general opinion is that means to the end do not matter when we strive for power. On the contrary, how we get power and maintain power, is crucial for longevity in the powerful position. For a coercive leader, the end is tragic, as the hunter becomes the hunted. Moreover, if a leader gets power by paying bribes or giving rewards, his power ends when he stops doing so. His loyalists disappear with speed. Abusing power is no longer safe in the present world, as it increases the personal risks of the leader and the organization risks. Therefore, risk managers need to ensure for continued prosperity of the organization, that leaders get power by the rights means and use it for the right purposes.

Cultural Complexities and Conflicts

Two weeks back I had given my laptop for repair. The computer guy first said that he would repair it in a day for Rs 1500. Then he called up and said it will take two days. Then he called up and said it will take Rs 2500. I asked him to return the laptop without repairing and ended up paying Rs 350 as service charges as he had identified the problem. Last week I asked a person to recharge my TV subscription and I am still waiting for the same. Why am I ranting on the blog?

Reason is these things happen in India. Based on these experiences the foreigners visiting India formulate an opinion on India. Secondly, the foreigners either formulate opinions on Indians from media reports or base it on their experiences of Indians living abroad. Media thrives on negative information and hardly report on positive aspects. Indians living abroad are just a small slice of the country and they do not completely represent the culture at home.

Some westerners visit India to understand it better as it is a growing economic power. However, whenever I have read their views, I feel they have a superficial picture and do not really understand the cultural complexities of India. They attempt to dissect each part independently and try to fix the jigsaw puzzle. However, Indian culture is akin to a seven-layered cake. The multitudes of flavours need to be tasted as a whole.

In India, there is a saying. To understand the water flowing in Ganga check the origin from Gangotri. To understand the culture of the country and the behaviour of the people, one needs to see the history of at least 100 years. I know in this age we believe world is changing so fast that people change quickly. However, I was reading Gandhi ji’s autobiographies and was surprised that most of the causes of conflict and misunderstandings between western people and Indians remain the same. For example, I understand what is being said by a westerner but sometimes I don’t get the logic behind the behaviour. From an Indian context, it just doesn’t make sense.

1)     The Western Civilization

The difference lies in the approach to life. The western civilization conquered the world in past centuries with the primary motive of getting richer. Though they entered as traders in countries, they soon became rulers. Establishing supremacy by war, brute force, aggression and breaking the spirit of locals were considered good tactics. The morality of their decisions and the suffering caused to human race wasn’t an aspect that got importance. The enemy had to be destroyed by whatever means possible.

So even today, the western corporates mostly have an aggressive organization culture with profit motive. Money is still the primary driver for most activities. The star performers are aggressive men who achieve their positions by cutthroat completion in the dog eat dog world. Ethical competition was until the last few decades an alien concept. Deception, cunning, and breaking the rules are valued traits for winning the game. There are few women at the top, as feminine traits were never respected. They are considered too soft.

2)     The Indian Civilization

In contrast, the Indian civilization since ancient times valued simplicity and the focus was on progress of the soul. In young age, a person was required to set up family, have a career and earn sufficient amount to keep the family in comfort. In old age, an Indian gave up all attachments and desires to focus on purifying the soul. Hence, during their lifetime Indians were required to develop virtues of truthfulness, simplicity, humility, patience, perseverance, frugality, and  other worldliness.

Cunning, aggression and deception were looked down. As Gandhi said – “a thing secured by a particular weapon can be retained only by that weapon” hence enemies weren’t destroyed but converted to friends wherever possible. That is why Indians used non-violence in the struggle for independence. Even when wars were fought, rules were to be followed and the person breaking the rules was considered unprincipled and cowardly. Breaching trust was shameful, contrary to the western opinion where the person whose trust is broken is considered a fool for trusting.

In respect of leadership also, since centuries India has propagated servant leadership and not that of arrogance and supremacy.

3)     The Global Organization

With globalization, one can see these two divergent approaches to life in close quarters interacting daily. I have heard many of my western colleagues comment about a mild-mannered Indian – “X is not aggressive enough, will he get the job done?” Whereas the Indian colleagues say – “What is wrong with this person, why do we need to fight? We can cooperate and get the work done peacefully.”  Team workers are always more valued than star performers. Cooperation is encouraged than competitive behaviour.

Each group doesn’t get the motives and thought process behind the other group’s behaviour. Westerners can’t figure out how Indians succeed in business with all these traits and attributes. They predict failure, and see success in the long run. Quite a few Indians considered unemployable by western standards (unassertive, weak, too humble, or polite) have successful careers in India.

While both groups now attempt to understand the behaviour of other, it is quite impossible to change it in a short time. A person brings to an organization the culture s/he has been raised in. The personal values and attributes can’t disappear on joining and neither can they be left at home during office hours. Respecting the person’s culture and giving space is the best approach.

Closing thoughts

The oriental nations – India and China – are the biggest emerging markets. The western world can’t ignore it and neither can they change it. Hence, they have to understand it and learn to survive in the oriental culture. It is among the biggest opportunities today to bring peace and prosperity in the world. In my view, to reduce the cultural risks and related conflicts more Indians should educate the western population about their historical and social culture. This will give deeper understanding and remove prejudices. The 21st century is bringing change; it is up to us on how we manage it.

iGate’s Failures in Risk Management

phaneeshiGate fired its CEO Phaneesh Murthy for sexual misconduct after Araceli Roiz; an American employee accused him of sexual harassment. As per media reports she has claimed that the relationship started soon after she joined the organization in 2010 and is pregnant with his child.

Mr Phaneesh Murthy has the dubious honor of facing two similar charges while working as a senior manager in Infosys in 2002. Reka Maximovitch and Jennifer Griffith had both received huge out of court settlements previously. Now he faces the similar charges from Araceli Roiz. Mr Murthy has acknowledged that he had sexual relationships with Ms Roiz. However, it was with her consent. He has alleged he is being defamed and this is an attempt at extortion.

With the limited information available in the media, one cannot comment on the details of the personal relationship.

However, this disaster teaches a few lessons. iGate could have prevented this reputation damage and legal risks if it would have taken a few timely steps.  iGate board and senior managers failed to take due care of the following risks.

1.     Pre-employment Background Screening

Mr Murthy has an excellent academic and professional achievement record. He was credited for taking Infosys turnover from $ 2 million to $ 700 million. However, when he was hired by iGate in 2003 he was in the news for all the wrong reasons. The sexual harassment cases were all over the media.

iGate needed a CEO who could deliver results. My guess is the board looked the other way or considered Mr Murthy’s infidelities small or insignificant. However, if a junior or middle manager had the same reputation, his career would have been over. No organization would have hired him.

Hence, when generally senior managers background screening is more stringent  than junior or middle managers, iGate board took the opposite stance.  It appears that the same yardstick isn’t being applied for background screening or it is being given lip service.

2.     Failure to Monitor & Control CEO Behavioural Risks

iGate board and senior managers chose to ignore the CEO behavior  As per media reports, the relationship was known to the staff. However, it appears no action was taken to guide or coach Mr Murthy.

Read these statements of Mr Murthy from prior interviews at the time of Patni takeover.

The National – “Everyone says that M&As are about ego. I’ve been a salesperson for 10 years. For every 100 doors that you knock on, 98 get shut in your face. That has knocked away most of my ego. I have two teenage boys who whip my butt in every game. They have gone from wanting to be on my team to not wanting to be on the loser’s team. Because of that, I have no ego left.”

Livemint – “Not at all. I am basically a conservative, middle-class south Indian Brahmin. As it is, we don’t like debt, and I am very uncomfortable with a $700 million (around Rs 3,180 crore) debt.”

Ms Araceli Roiz is 31 years old and Mr Phaneesh Murthy is 53 years old. In conservative South-Indian Brahmin families “divorce” is taboo. With two teen aged boys at home, he started an affair, if Mr Roiz version is true, when she was in her late twenties.

From a psychological perspective, it is a classic case of a talented man unable to deal with his own fallibility and mortality. Mr Murthy is a competitive man and the yearly success in his career may have made him feel invincible and powerful.  He is raised on Indian middle class values that look down on promiscuous behavior  He competes with his own children in games. He was heading an Indian IT organization where the average age of employees is 25-26 years. Does it look like he was suffering from mid-life crises?

The board members and other senior managers could have identified the emotional baggage he was carrying around and addressed the issue. The question arises, when the board knew about his weakness and character problem, was he provided any coaching or mentoring? Or did the board take the view, that as long as he is delivering the numbers, everything will be tolerated.

3.     Lack of attention to work culture

The board and management knew that Mr Murthy had a marked reputation in respect to female employees. Secondly, it appears that is relationship with Ms Roiz was an open secret. From his own words, it doesn’t seem that he took sexual harassment or company policies seriously. In the interview, he stated:

“It was a personal relationship. The company policy states that any two employees having a relationship have to inform the superiors. It is a small note in an employee handbook. I did inform the company about the relationship. Though it was a question of timing from my side as I disclosed this only a few weeks ago, only after the relationship was over.”

According to him, “it is a small note” in the company handbook.  He didn’t believe in walking the talk in personal ethics or corporate code of conduct. Hence, the question arises, what attention iGate paid to maintain the corporate culture.

With previous cases of sexual harassment against the CEO and an on-going affair, did iGate management ensure that the sexual harassment policies were implemented in spirit? If a woman, as per Roiz’s claim, was forced into a sexual relationship by the CEO, what effect did it have on other female employees and work culture? Did it not set the stage for the hostile work culture where women would feel insecure to report cases of sexual harassment? Let us say, another female employee was harassed by a male senior manager, what options does she have when she knows that the CEO is doing something similar? How seriously was sexually offensive behavior taken by the management?

 The organizations pay a heavy price in respect to sexually harassing culture. The direct costs are of course legal penalties and cases, however, the indirect costs are absenteeism, disengagement, high turnover and lower productivity. The iGate management appears to have ignored these aspects while hiring Mr Murthy and during his tenure.

4.     Ineffective Crises Management

iGate public relations team issued the statement – “The investigation, which is on-going, has reached the finding that Murthy’s failure to report this relationship violated iGATE’s policy, as well as Murthy’s employment contract. The investigation has not uncovered any violation of iGATE’s harassment policy.”

It gave information on the interim CEO and search for the new CEO, to rest fears of the investors.

This appears more of an attempt to limit legal risks. According to US laws the company is responsible for sexual misconduct by its employees. Subsequent to the above news, the company has not made any statement or explanation on what it did to prevent such incidents.

According to media reports, the Indian employees received an explanation from the senior managers on the incident and were instructed not to talk to people outside and within the organization. An instruction not to communicate with the media or put comments in social media is sound. However, not to communicate with fellow employees sounds like an attempt to silence. Can management stop the discussion outside office hours between the employees?

In such instances, various stakeholder expectations need to be addressed. It is a sensitive issue that gets the attention of public, bloggers, activists, women lobbies etc. Even the employees psychological stress levels increase and they need to be managed. However, from the information available in the media, there isn’t much effort being done to manage the crises.

Closing Thoughts

Sexual harassment cases cause huge reputation damage and legal risks. I am not sure whether after Mr Murthy’s previous cases, iGate got proper insurance coverage for directors and senior manager liabilities. Implementing sexual harassment policies and holding everyone to high standards of conduct is something organizations need to concentrate on. The issue was taken lightly previously, but now women workforce is increasing and so are the cases of harassment. Unless companies wish to have their name tarnished, they need to take the right steps.

References:

  1. Read more: http://www.thenational.ae/business/technology/rise-and-fall-and-rise-again-of-it-star-phaneesh-murthy#ixzz2UBKIGikk
  2. http://www.financialexpress.com/news/phaneesh-murthy-i-will-fight-sexual-harassment-charges-vigorously/1118857/1
  3. http://timesofindia.indiatimes.com/tech/careers/job-trends/Murthy-scandal-iGate-staff-gets-social-media-code/articleshow/20222185.cms

Missing Men of Honor

royal disgrace

The Story of Disgrace

A wave of shame and disgrace washed over Indian Premier League’s (IPL) Rajasthan Royals team. Three players of the team – S Sreesanth, Ajit Chandila and Ankeet Chavan – were identified as part of the spot fixing racket. Eleven bookies were involved. Investigators have found some evidence connecting it to underworld don Dawood Ibrahim.

As per police disclosure Chavan was paid Rs.60 lakhs by the bookies, Sreesanth and Chandila got Rs.40 lakhs each. By the number of matches they have played they would have earned a few crores each. The bookies lured the players by throwing parties and providing female escorts.

It is shocking that players with such international repute and excellent career opportunities would take a criminal route to earn money. One wonders what they were thinking. Were they joyously throwing up their hands in the air and dancing with happiness. Did they think that for a few millions they would be breaking the hearts, trust and expectations of billions of people, starting with their family?

It is reported that Rahul Dravid, the captain of the team suspected something. He made Sreesanth sit a couple of matches and the team managers asked him to leave the team. How painful it must have been for Dravid, a man reputed for gentlemanly conduct.

This isn’t the first time followers hearts have been broken by their idols. It started with the political leaders. Now the cancer has spread through all facets of life. Indian politicians – Gandhi, Nehru, and Azad – were known for their impeccable behavior  Congress leaders fought for Indian independence. They spent years behind bars to fight for a cause. Now Indian politicians spend time behind bars for corruption and fraud. Instead of feeling shame or humiliation, they get back into public life with renewed vigor to mislead people and make money.  Over 30% of Indian politicians have a criminal track record.

The new breed, who have joined the infamous bandwagon are senior managers of Indian corporates. After Satyam and 2G telecom scam, their names appear frequently for being interrogated by CBI and spending time in jails.

Valuing Honor in Our Lives

So where has honor disappeared? Previously, the mark of distinction for a man was when people referred to him as – “he is an honorable man”.  Having a dishonorable reputation was disastrous socially and professionally. Now, honorable men among leaders can be counted on figure tips.

As a world civilization, we need honor back in our bloodstream. Without it, humanity will reach new levels of depravity. We require men and women to work dedicatedly to get it back for the sake of next generation, though it is a challenging task.

The cynics will say it is a pipe dream and point out various flaws. The idealists look at the times gone by and wish the same could somehow come back. The practical breed has learnt to work like an automaton to earn a living and look at nothing else.

So where do we get our heroes who will change the world for us?  The heroes have to pay a price. Lincoln, Gandhi and King – were all assassinated because they dared to bring about change. From the first step to the end of their journey they made personal sacrifices. They repeatedly saw failures, their hearts sank with despair and somehow they gathered their strength to walk on thorns again.

In the present world, who would wish to trade the high life, luxuries and comforts for a life full of dynamite?

But unless we do so, we are bestowing the next generation a dangerous life.

So our choice is between our generation and the next. Do we want to look that far ahead?

Closing Thoughts  

When we talk about change, our hackles rise. Even when it is obvious that we should change, we don’t want to. That is a human failing which 100% of us have. Our best excuse is that we can’t change the world, who would listen to us, how can all the people change? But if we study change, we just need 10% of the people to believe in our cause. That is, we need to influence just 1 in 10 people in our life. That doesn’t sound very difficult; all of us are capable of doing it. So why not give it a shot, and bring honor back in our lives. I leave you with words of Dorothy L. Sayers from Gaudy Night:

“If it ever occurs to people to value the honor of the mind equally with the honor of the body, we shall get a social revolution of a quite unparalleled sort.”

References:

IPL match fixing 

Leadership of Dead Bodies, Stones and Flowers

leadership imprint1

In April, two Air India pilots handed over the controls in auto-pilot mode to two female cabin attendants to take a short nap. They decided that their sleep was more important at 33,000 feet while flying the 160-passenger flight from Bangkok to Delhi. They returned to the cockpit after 40 minutes when one of the cabin attendants accidently knocked off the auto-pilot mode.

The angry Twitterate asked for pilot’s license suspension, removal from job and legal charges for culpable homicide. Everyone questioned their work ethics and shock at their irresponsible behavior. Air India investigated the incident, suspended the pilots and sated that passengers’ safety was never compromised. Unbelievable, how can passengers be safe without any pilots at the helm?

1.     Double Standards in Evaluating Corporate Leaders

 The pilots were crucified for risking the lives of passengers. However, surprisingly the pilots of the corporate world do not suffer the same fate. The wizards and titans of the banking industry crash landed the world economy, but they didn’t lose their CXO seats.

Look from another lens. Did any senior in Supplier Company or the multinationals lose their job in the Bangladesh factory fire? In Foxconn, the Apple contractor, 11 employees committed suicide, four died in an accident and one collapsed after continuously working for 36 hours. However, Steve Jobs was rated as the second most popular leader by the CEOs in a survey conducted by Price Waterhouse Coopers. The first and third were Winston Churchill and Mahatma Gandhi respectively.

Now this is going to rattle my readers but let me say it. Steve Jobs was a great inventor, designer, strategist and marketer. However, when it came to people, his employees considered him rude and manipulative, and his competitors found him uncivil. Though Apple achieved great heights, he paid low salaries to the employees in the Apple stores, paid no dividends to the shareholders, pushed down suppliers to manufacture at lowest possible rate and didn’t believe in charity or corporate social responsibility. His behavior and actions weren’t people centric or humanity oriented. So my question is – do we consider him a great leader because he managed to put Apple on top? That makes him a great CEO, not necessarily a great leader.

2.     Misconceptions of Leadership

 The problem arises due to the definition of leadership. Read the dictionary meaning:

Leadership is “organizing a group of people to achieve a common goal”.

- We don’t focus on how the group of people were gathered; by inspiring them or arm-twisting them.

-  We don’t focus on the nobility of the goal; was it to exploit others or liberate them.

-  We don’t focus on the method adopted to achieve the goal; was it by breaking the rules or a journey of virtue.

In the present world we see leaders leaving dead bodies in their path, walking over people as if they were stones and sucking the life out of them. Great leaders create leaders not followers, they make others blossom like flowers.

Be it a corporate leader or political leader, we don’t wish to question the leadership methods. Our thinking is, how it matters to us, we have nothing to lose. We have everything to lose, and Martin-Niemöller-Foundation words at Hitler’s time still resonate:  

“First they came for the communists,
and I didn’t speak out because I wasn’t a communist.

Then they came for the socialists,
and I didn’t speak out because I wasn’t a socialist.

Then they came for the trade unionists,
and I didn’t speak out because I wasn’t a trade unionist.

Then they came for me,
and there was no one left to speak for me.”

Our own silence will kill us and the society we live in. When humanity is at stake, can we close our eyes and say nothing is at stake.

3.     Leadership Training

The Institute of Strategic Change reported that – “the stock price of ‘well-led‘ companies grew by over 900% over 10 years, compared with 74% for poorly led companies”. Warren Bennis in 1998 said – “The Truth is that no one factor makes a company admirable. But if you were forced to pick the one that makes the most difference, you’d pick leadership.” However, how many companies train on leadership or do a performance evaluation on leadership qualities?

Quite a few would be saying we do it. So let me clarify. In organizations bosses tell the juniors what to do and how to do it. They give rave reviews to the employee who completes the task as they had stated. They promote that employee and now he becomes a boss. At best, he will be a good manager, not a leader.

Corporate world determines success rate by title and salary.  Neither guarantees leadership skills. Employees aim to become a boss, not a leader. The terms are not synonyms.

According to Malcolm Gladwell,  all outliers practiced their talent for over 10,000 hours to achieve greatness.  In the corporate world, how many hours are dedicated by each employee to learn leadership? Learning leadership is a by-product of the main job, till CEO level. Then isn’t it surprising that we do not have many great leaders in the corporate world.

 Closing Thoughts

Maximum damage in the world was caused by people who got powerful positions without good leadership qualities, be it Hitler, Jeff Skilling, Bernie Madoff or Lance Armstrong. The biggest risks in the corporate world are leadership risks. It is the leaders who make the decisions, so unless we have a system of putting the right people in leadership positions we will continue to have these disasters. Hence, our job is to develop good leaders, select good leaders and continuously monitor the leaders.

 Wishing my readers a Happy Mother’s Day. Being parents is the toughest job in the world,. They are responsible for raising the next generation of leaders.

References:

  1. Air India Pilots Story  
  2. Deaths in Foxconn
  3. Price Waterhouse Coopers report on best leaders

 

Human Rights Risk Management Process

Bangladesh Building Collapse

The fire in a nine-story factory building in Bangladesh killed 400 people. More than 600 people remain unaccounted for. It housed five garment factories that supplied to international brands – J.C. Penny, The Children’s Place, Dress Barn, Primark, Wal-Mart etc. The workers were asked to come to work even when cracks appeared in the building the previous day.

Bangladesh is the second largest exporter of clothes and the workers get the lowest compensations. Just around USD 37-40 per month. The question arises why are the multinational organizations not following the UN Guiding Principles for Human Rights protection. The reason is simple; they want to show higher and higher profits to the investors.

In Delhi, in Munirka one will find numerous small factories full of workers making export garments. A friend of mine also ran one. I had bought a few shirts from her at cost price ranging from Rs 300-500 (USD 6-10). In one international visit, I found the same shirts selling in range of USD 15-30. The fivefold increase in price was because of the brand tag attached to the shirt.

The multinational buyers push the prices down and some supplier gives a rock bottom price. The others are forced to match that price to get the business. End result is that basic facilities are not provided to the workers and they work at really low wages. Unknown workers are paying with their lives in developing countries to satisfy the growth targets set by CEOs to earn their bonuses and keep investors happy.  It is the dark side of capitalism which organizations want to hide.

In most companies, human rights risk management is not a focus area. The 2013 Global Risk Management Survey conducted by RIMS identified seven risks related to human resources among the top fifty risks. Though worker injury and harassment were included there was no specific emphasis on human rights risk management.

The risk management team can conduct annually or bi-annually a human rights risk management assessment. It requires attention not only from human resources perspective but from operational, financial, legal and reputational risks perspective. Any breach can result in huge losses.

Here are some of the steps mentioned in the UN Guiding Principles on Human Rights and guide “Investing the Right Way” issued by Institute of Human Rights and Business.

1.     Review the Human Rights Policy Statement

Human rights risk management is emerging as an important issue, especially with multinationals entering emerging markets and developing countries. They are expected to protect and respect rights of workers, communities and society. Investors can play a crucial role by influencing companies to promote human rights relating to gender equality, child labor, rights of indigenous people, land acquisition, mineral processing etc.

Hence, companies need to publish Human Rights Policy Statement on their websites. The UN Guiding Principle 16 states –

 “As the basis for embedding their responsibility to respect human rights, business enterprises should express their commitment to meet this responsibility through a statement of policy that:

(a) Is approved at the most senior level of the business enterprise;

(b) Is informed by relevant internal and/or external expertise;

(c) Stipulates the enterprise’s human rights expectations of personnel, business partners and other parties directly linked to its operations, products or services;

(d) Is publicly available and communicated internally and externally to all personnel, business partners and other relevant parties;

(e) Is reflected in operational policies and procedures necessary to embed it throughout the business enterprise.”

As a first step risk managers need to check whether the organization has a human rights policy statement and the above mentioned steps have been adhered to.

2.     Human Rights Impact Assessment

The second aspect of UN Guiding Principles is for companies to establish human rights due diligence processes. Guiding Principle 17 states:

 “In order to identify, prevent, mitigate and account for how they address their adverse human rights impacts, business enterprises should carry out human rights due diligence. The process should include assessing actual and potential human rights impacts, integrating and acting upon the findings, tracking responses, and communicating how impacts are addressed. Human rights due diligence:

(a) Should cover adverse human rights impacts that the business enterprise may cause or contribute to through its own activities, or which may be directly linked to its operations, products or services by its business relationships;

(b) Will vary in complexity with the size of the business enterprise, the risk of severe human rights impacts, and the nature and context of its operations;

(c) Should be on going, recognizing that the human rights risks may change over time as the business enterprise’s operations and operating context evolves.”

Human rights risk management is complex and challenging. If ignored, they can increase political risks and deteriorate relationships of the organization with the government. For example, Tata Motors wished to establish Nano manufacturing plant in Singur, West Bengal. The government allocated agriculture land using 1894 land acquisition rule, meant for public improvement projects, to take over 997 acres farmland. The farmers protested with help of activists and the then opposition leader Mamta Banerjee. Tata Motors moved out of West Bengal and established the factory in Gujarat. Multinationals looking for large tracts of land to establish factories are facing similar challenges in India.

Another aspect to look into is that scrap, waste disposal, sewage, environment pollution etc. from factories can impact food, water and health of local communities.

Decision needs to be taken whether investments should be made in countries or states with poor human rights record. In India, the Naxalite area is extremely conflict prone and business operations can have severe human rights impact.

Risk managers should evaluate the strategy and operations of the company from human rights, environmental, social and governance factors. The companies can face operational risks (project delays or cancellation), legal and regulatory risks (lawsuits and fines) and reputational risks (negative press coverage and brand damage). The impact assessment should be done from investors, customers, employees, society and supplier perspective. Identify business owners for the risks and devise appropriate risk mitigation plans to address adverse impact.

3.   Grievance Mechanisms

UN Guiding Principles state that victims of corporate related human rights abuse should have access to judicial or non-judicial remedies. Companies should provide some remedies themselves and cooperate in the remediation process.

UN Guiding Principle 29 states –

“To make it possible for grievances to be addressed early and remediated directly, business enterprises should establish or participate in effective operational-level grievance mechanisms for individuals and communities who may be adversely impacted.”

However, this isn’t followed by the companies in true spirit. “A Vigieo analysis of human rights records of 1500 companies listed in North America, Europe and Asia revealed that, in the previous three years, almost one in five had faced at least one allegation that it had abused or failed to respect human rights.”

Ideally the investors in the company should ensure that grievance mechanisms exist and address human rights issues. The transparency and disclosure of the same in annual reports would highlight the financial, legal and reputational risks. However, the investors don’t seem to be bothered by it.

See the case of Apple. It reported  Gross Profit Margin – 42.5%, Net Profit Margin – 26.7%, Revenue Per Employee – $ 2,149,835 and Net Revenue Per Employee – $ 573,255. It has 43000 employees in US and 20,000 outside US. However, Apple contractors hire an additional 700,000 people to engineer, build and assemble iPads, iPhones and Apple’s other products.

An Apple supplier in Taiwan, Foxconn was recently in the news for its workers attempting suicide. As per reportsWorkers are required to stand at fast-moving assembly lines for eight hours without a break and without talking. Workers, sharing sleeping accommodations with nine other workmates, often do not know each other’s names. They do not have much time to get to know each other. The basic starting pay of 900 RMB($130) a month – barely enough to live on – can be augmented to a more respectable 2,000RMB ($295) only by working 30 hours overtime a week.”

See the difference the company earns per employee and the payment made to the supplier’s employees. Apple shows profits at the expense of lives of Taiwanese workers.  The workers don’t have much of a grievance mechanism in China as the government stated that the suicides are within the normal suicide rate. Can Apple investors sacrifice some profit margin for safety and security of the contractual workers?

Another old example is the class action suit since 2001 on Wal-Mart Stores that involved 1.5 million current and former Wal-Mart female employees. It is the largest workplace bias case in US history.

 4.    Human Rights Reporting

 The biggest challenge is that most of the human rights abuses are not reported. The victims of human rights exploitation hold little power in comparison to the exploiters. They can hardly take up the might of powerful businesses when they are struggling to get basic food and shelter. Secondly, in the developing and emerging countries, corruption levels are generally high. Hence, media, law enforcement agencies etc. are bribed by the power players to silence the victims. However, with internet and social media, things are gradually changing. People have a voice and collectively they can fight.

UN Guiding Principle 21 lays out the requirement for companies to communicate human rights impact externally. It states -

 “In order to account for how they address their human rights impacts, business enterprises should be prepared to communicate this externally, particularly when concerns are raised by or on behalf of affected stakeholders. Business enterprises whose operations or operating contexts pose risks of severe human rights impacts should report formally on how they address them. In all instances, communications should:

(a) Be of a form and frequency that reflect an enterprise’s human rights impacts and that are accessible to its intended audiences;

(b) Provide information that is sufficient to evaluate the adequacy of an enterprise’s response to the particular human rights impact involved;

(c) In turn not pose risks to affected stakeholders, personnel or to legitimate requirements of commercial confidentiality.”

 As per the UN principles, the reports must cover appropriate qualitative and quantitative indicators, feedback from internal and external sources including affected stakeholders.

Risk managers can evaluate the reports and the reporting process to ensure that all risks are properly addressed. They should evaluate whether cautionary steps are taken and nothing is being done to exacerbate the situation. They should highlight severe or irreversible risks to the management to ensure appropriate decisions are taken.

Closing Thoughts

 Inequalities in income are the main cause of human rights abuse. The rich want to get richer at the expense of blood and sweat of the poor, and sometimes life. The diamond manufacturers and sellers took the right step to publish that they do not source blood diamonds. Since 2003, the Kimberley Process Certification Scheme (KPCS), supported by national and international legislation, has sought to certify the legitimate origin of uncut diamonds. Trade organizations – International Diamond Manufacturers Association (IDMA) and the World Federation of Diamond Bourses (WFDB) – representing virtually all significant processors and traders – have established a regimen of self-regulation.

Other industries, be it technology, electronics or textile manufacturers,  need to come out with similar steps to stop human rights abuse. The risk managers have a vital role to play in it. If we do not do anything, we are cheating this and the next generation of their right to live happily.

References:

  1.  Investing the Right Way – A Guide for Investors on Business and Human Rights – By Institute of Human Rights and Business
  2. Singur farmland-  Tata Motors conflict
  3. Apple financial ratios
  4. Foxconn Case Study
  5. Diamond industry sales clauses
  6. 2013 RIMS Global Risk Management Survey

 

Employee Selection and Background Screening in Ancient India

Would it be fair to assume most of us believe that employee selection and background screening processes were formed in the 20th century? Do you think soft skill evaluation of employees is the latest management mantra? Will it come as a surprise that in India these were formed in 4th Century BC?

Kautilya’s Arthshastra, written in 4th  century BC, lays down rigorous process for selection and background screening for ministers, priests and government employees. It is more extensive than that employed in the present-day corporate world. I am doing a comparison of the two below. After reading, tell me whether we have progressed or deteriorated in 25 centuries.

1.      Selection Process

Let us first see the qualities senior level people require according to Kautilya:

“Native, born of high family, influential, well trained in arts, possessed of foresight, wise, of strong memory, bold, eloquent, skilful, intelligent, possessed of enthusiasm, dignity, and endurance, pure in character, affable, firm in loyal devotion, endowed with excellent conduct, strength, health and bravery, free from procrastination and fickle mindedness, affectionate, and free from such qualities as excite hatred and enmity–these are the qualifications of a ministerial officer (amátyasampat).”

If you look at them, he covers intelligence, professional capability, personal character, strategic thinking, emotional intelligence, social and business connections, soft skills and physical fitness. In the 21st century words and terminologies are different, but attributes are the same. Hence, not much change.

2. Background Verification Process

Now I am giving a table below comparing the two period’s process of background verification. For detailed methodology of the current period refer to my article – Pre-employment Background Verification.

Background screening

Doesn’t it make you think? Over 25 centuries, the basic concept and process of selection and background verification has remained more or less the same. However, Kautilya’s selection process doesn’t stop here. He mentions a few additional processes and I am amazed at the insight.

3. Detailed Character Verification

In the Arthshastra, Kautilya asks to ascertain the character of employees by offering temptations and instigating them against the king. Senior level ministers and priests should attempt to lure the employee to test him for four allurements- religious, monetary, love and fear. He suggests creating situations to test whether the employee will defy the king for the sake of religion, money, sex or under threat. Then he states, that whosoever is lured by a certain aspect, should not be in-charge of it. For example, if someone fails the test of monetary allurement, he should not be responsible for managing finance. The tests were conducted to ensure that people in critical positions were incorruptible.

In present times, we select senior managers on various aspects but their loyalty and character aren’t as thoroughly checked as in the ancient times. In my view, quite a significant number will fail Kautilya’s tests for “purity of character”. How many CEOs check whether their direct reports will betray them for bribes and rewards?

Closing thoughts

In India, around 25% candidates submit false or inaccurate resumes. The background screening processes aren’t fully established in most of the organizations. With high risks of hiring terrorists, hackers and fraudsters the organizations are susceptible to financial, legal and reputation risks. Isn’t it surprising that even after 25 centuries the process and procedures aren’t fully implemented.

We now say we are living in a fast changing world. So, do you think background-screening processes will become efficient in this century, if they haven’t changed in 25 centuries?