Values in work culture

As a counselor, I envy Kasuo Ishiguro. I mean we struggle professionally to establish empathy and rapport with individuals and groups. Walk in their shoes, as it were, to understand their issues. But for Ishiguro, to weave plausibility across country and culture seems to come naturally. He has the amazing ability to imagine people and situations, and write fiction into reality. 

He says in The Remains of the Day:

Now, naturally, like many of us, I have a reluctance to change too much of the old ways. But there is no virtue at all in clinging as some do to tradition merely for its own sake.

I would imagine that he refers to the orthodox traditions of Japan that he was born into, and spent early childhood in. With his experience of then and now, he perhaps perceives his origins as entrenched in the past when compared to the liberal West. But no, he puts the words in the mouth of Stevens the butler, English in every inch. This character, the protagonist of the book, is in charge of staff at an English manor in England around the time of World War II, a setting perhaps previous by a couple of decades to the birth of the book’s author.

It is true that Ishiguro has been immersed in Western culture from the age of five, but as an immigrant. Hence, to not only visualize a cultural context different from roots, but also to fit it into a bygone era has to be a feat. The author says he gleans much knowledge about the cultural distinctiveness from books. He probably also has a prodigious memory for detail to be able to capture their characteristic quirks – and for this book, the Booker prize.

 

Despite the enlightenment he projects against clinging to traditions, Englishman Stevens himself appears to find it difficult to break out of the standard received mould of a manservant in the England of the ‘forties. A story he mentions, and one that his father would frequently recount admiringly, is of the exploits of a British butler overseas. At the employer’s residence in colonial India, this man had suddenly discovered a tiger hiding under the dining table: 

The butler had left the dining room quietly, taking care to close the doors behind him, and proceeded calmly to the drawing room where his employer was taking tea with a number of visitors. There he attracted his employer’s attention with a polite cough, then whispered in the latter’s year: ‘I’m very sorry, sir, but there appears to be a tiger in the dining room. Perhaps you will permit the twelve-bores to be used?’ And according to legend, a few minutes later, the employer and his guests heard three gun shots. When the butler reappeared in the drawing room some time afterwards to refresh the teapots, the employer had enquired if all was well. ‘Perfectly fine, thank you, sir’, had come the reply. ‘Dinner will be served at the usual time and I am pleased to say there will be no discernible traces left of the recent occurrence by that time.’

In the Stevens perspective, the onus is on the butler worth his salt to choose his employer intelligently. First, he must make a careful study of the employer and the work conditions. He must then make an informed choice for the best fit of employer-employee relations. Thereafter, the choice is binding. The highest work aspiration is to provide unquestioning service in all circumstances throughout employment. Stevens strongly disapproves of critical servants; they neither commit to tasks or stick with the job.

He muses:

For it is, in practice, simply not possible to adopt such a critical attitude towards an employer and at the same time provide good service. It is not simply that one is unlikely to be able to meet the many demands of service at the higher levels while one’s attention is being diverted by such matters; more fundamentally, a butler who is forever attempting to formulate his own ‘strong opinions’ on his employer’s affairs is bound to lack one quality essential in all good professionals: namely, loyalty.

The pronouncement probably resonates with Japanese traditions. But there is a distinct cultural difference. Honour and obedience to elders, especially family members, is paramount in the Asian cultures. In the England of the time, thoughts about the wellbeing the employer appears to trump familial bonds, as happens with Stevens.

The values of service mentioned in the book are hardly in evidence any more in the different regions of the globe. Is globalization to blame for this? Seems to me that we might point to the rise of professional management in organizations. As a result, the operational control of the concern has generally been separated from its ownership.

In the multinational corporation, for instance, commercial holdings of the company in various countries ensure that business transcends borders. Their management style and culture, knowledge and skill-based, is the same across continents. It drives the migration of the global workforce to different parts of the world, irrespective of individual nationality and culture. Their emergence has been welcomed as the process of unifying the world into one global village.  The exploitation of employees, a legacy of the industrial age where owners looked for ‘hands’ not ‘brains’, has thus been curtailed. 

Normally, the fear in the immigrant community would be of losing their cultural identity on foreign soil. Minor issues of discomfort in the new country may then appear magnified – the unfamiliar religious affiliations, food habits, currency calculations, traffic rules and even the inability to vent in the vernacular! These become emotional stressors. To keep from being assimilated, the people would find safety in like numbers, building around them an ethnic shield. A Chandni Chowk, a China Town, a Latin Quarter, and so on, develop in pockets to preserve continuity with ethnic origins.

The trouble is, the immigrant community very often clings to the past they have carried with them overseas. Unbeknownst to them, the social order may itself have evolved beyond back home. The traditions they swear by may in fact, be on the way to extinction in the parent nation, and they thus find themselves caught between cultures, with their adaptability in any case, suspect. 

The workplace, on the other hand, builds a structure and culture unlike society. They base almost solely on the rational numbers of business. This organizational sameness, whether in Asia or America, may appear familiar, reassuring to the individual immigrant.They immerse in work to stave off their angst. They tend to work harder than others to blend into the work culture, which serves the needs of the organization best. Should the culture call for an unwavering focus on the bottom-line, so be it, they live to serve its needs. 

However, there is a downside. The change of process causes the traditional attitudes to service to also change. Money has, instead, become the strongest motivator in the workplace.  In more recent times the pendulum seems to swing in the opposite direction.  Top management in many professionally managed companies resort to paying themselves obscene bonuses at the expense of the system and thousands of laid-off workers. The traditional values of service – commitment, honour, loyalty, and sacrifice, are casualty with the advancement of greed. We might shrug and call it collateral damage.  

Reference: 

Ishiguro Kazuo, “The Remains of the Day”. ISBN 978-0-571-25824-6. Faber and Faber Limited. Great Britain. 1989.

Preservation of culture?

In categorizing people into ‘us’ and ‘them’ groups, we refer to culture a lot.  According to our standards of judgement, these others belong to cultures that may be somewhat like us, or more usually, backward to us. Individual behaviours that may differ from our own, we tend to attribute to their cultural origins, their social DNA. Obviously, the term is of great importance to determine status in the civilized world.  

Culture means different things to different people. The spectrum of definitions the ‘Net throws up is wide, including: 

• Human intellectual achievement
•  Language, religion, cuisine, social habits, music and arts
•  Quality of excellence in person or society in manners and scholarly pursuits
•  A form or stage of civilization
•  Development or improvement of the mind by education or training
•  Shared beliefs and behaviours of particular ethnic, social or age group.

However, in India, and elsewhere in the world, the administrative view of culture focuses on one aspect only – a form or stage of civilization. Accordingly, the preservation of culture is a practice. This does not apply to the mainstream, which may socialize in the global community. It is meant instead to protect uncontacted tribes located in the remotest parts of India’s vast diversity. But, does the process work?

 

No doubt the bureaucracy started out with sound rationales behind the practice.  Because they have lived so long in their own microcosms, these tribes have become endangered species. The rest of the world is toxic for them; hence the intention to save their numbers makes sense. Their physical survival is important against germs of modernity becoming life-threatening diseases.  

They are kept away on reservations of land tract, forest or islands. Their way of life of centuries continues, and that, on face value, seems logical. The social organization, their family structure, relationships and laws are to remain the same, same and same, as they ever were in the bygone days. Taxpayer monies are pumped in to maintain the appropriate ambience, and very heavy restrictions imposed on the surrounding environment. The laws strictly prohibit any interactions between mainstream society these isolated threads of humanity. Mainstream society is warned against entering their preserves, meeting the inhabitants or photographing them up close.  

I, however, find the present process discomforting. Fact is process implementation is faulty with inadequate safeguards and lax supervision. Its very purpose defeats with asphalt roads constructed around the reservations for the flow of convoys of tourist vehicles. When modernity invades their backyard, the tribes are hardly uncontacted anymore. The alien presence they are supposedly protected from is emphatically brought home to the people of the land. 

It seems to have become discriminatory, to keep the uncontacted backward, and make them anthropological attractions. Their ‘form or stage of civilization’ feeds the majority self-esteem. Tour operators rely on the greed of lower level administrative personnel to sell their tours. Their tourist convoys are little different from any jungle safari in search of exotic animals. There is folklore of their wild nature, their mistrust of outsiders, and their attacks with bows and poison-tipped arrows. They are taken as creatures of the wild and their habitats human zoos that excited tourists want to visit.  

The natural curiosity of a people is played upon. Inquisitive customers on tour crane their necks in eagerness for glimpses of their appearance with little or no clothing.  Convoy drivers are bribed to stop, and the tribals – especially women and children – to approach, enticed with food and other objects. They must then perform for the entertainments of a voyeuristic ‘superior’ civilization. The fact that they are living, breathing human beings worthy of dignity and respect, escapes attention. 

It carries the flavour of exploitation of groups unused to the culture of deception and guile. Unscrupulous middlemen take advantage of the gray areas. They grab every opportunity presented by loopholes in the system to further vested interests. Wherever there is an obstacle, bribes or favours are freely exchanged. What then is the point of laws when the measures to enforce them are weak or nonexistent?

 

In South America, watchdog organizations are able to expose the racketeering of corporate bodies that flout laws with impunity for their profits – owning land without title, deforesting without environmental licences. Because the people are isolated from modernity, and have neither the knowledge of laws, nor vigilant administrative support, they are easy prey for predatory groups unconcerned by their extinction. The spokespersons for some ancient tribes in Brazil and Peru have even claimed genocide of tribal population. 

One report from Paraguay last year says:

The secret agenda of a huge ranching firm in Paraguay has been exposed by satellite photos showing a newly-constructed reservoir. The reservoir reveals the firm’s intention to clear nearby forest belonging to an uncontacted tribe. In a pattern characteristic of the Chaco region, landowners first build large water containers before clearing tracts of forest for livestock. Carlos Casado SA’s construction of the reservoir puts neighboring Indians, especially uncontacted Ayoreo, in immediate danger.

Another report in March this year points out the growing dangers posed by unbridled industry:

Many Ayoreo have already been contacted and have been claiming title to the land owned by Carlos Casado S.A. for more than twenty years. Their uncontacted relatives who remain in the forest are extremely vulnerable to diseases brought in by outsiders, and unwanted contact could be deadly. The uncontacted Ayoreo are being forced to flee as their forest is being rapidly bulldozed to make way for cattle. … In 2009, Survival International successfully lobbied shareholders such as the Church of England and the Rowntree Trust to disinvest from mining giant Vedanta Resources, because of the company’s intention to mine the sacred mountain of the Dongria Kondh tribe.

 

It may be argued that in the Indian context, the situation is not so dire. I would add ‘yet’ since it is only a matter to time before it might be. The environment and fragile ecosystems are already endangered, as changing weather patterns testify. The lack of ethics in modern society makes illegal mining, deforestation, poaching, and industrial pollutions almost the rule. Corporate bottomlines drive the agenda, backed by powerful resources. Faced with the politico-corporate nexus, the bureaucracy falls silent, while India’s non-governmental social organizations lack bite. 

Superiority in this new age is certainly in terms of corruption. It threatens not only people groups, but also planet survival. The majority should forget their preoccupation with empty status and relearn from people backward to us a bit of forgotten ancient traditions. The uncontacted tribes have preserved a culture for centuries, that the mainstream has lost sight of – adaptability to Nature, and harmonious existence with its creations. They could ensure longevity of the planet, and yes, of our modernity.

The socialist attitude

Perceptions of socialist attitudes tend to the negative, especially in the West. The assumptions may be of some sort of discrimination against creative enterprise nurtured in poverty-stricken populations. However, the socialistic slogan generally attributed to Karl Marx: from each according to his ability, to each according to his need may actually owe its origins to the 'right' - the moral teachings from religious discourse of times gone by! 

In response to the socialist attitude perceived in our posts on the London riots, a reader comments: 

In my opinion most people, who start life with very little, have a socialist attitude that says “those that have should give some of it to everyone else (me)”.

In societies used to outlooks of individualistic enterprise, the thought may conjure up visions of large groups of poor people feeding off other groups in parasitic existence.  The  socialist attitude would then appear to sponsor the maintenance of poverty, facilitating hooliganism and apathy to honest labour. 

The reader also writes: 

As people earn more and get a better standard of living and more possessions their opinion tends to move to the right and they then think “those who have a lot more than me should share it BUT I don’t think I should share what I have worked for with those who don’t work”.

In other words, with the gradual accumulation of personal possessions, people's interests also change, turning to self at the expense of society. I should think the larger a social organisation is, the more it needs to subscribe to certain socialistic values, if only to keep the collective together in harmony. People that live in society, rich and poor, have certain duties to the collective, in the same way that members of a family are responsible for its identity and organization. 

Democratic societies with formidable Diversity, like India for instance, have had to incorporate these values into their Constitution, assuring justice, liberty, equality and fraternity to all members within its fold. That means to carry the entirety forward to a new level of competence irrespective of caste, creed, colour and class. That also means to decrease divides between diverse social groups, and to fail to do so is to fail democracy. 

Psychologist Adler perceived the balance between social interest and self-interest, crucial for harmony. Since none can exist in isolation, people join with other people of similar background, employment, or status to form social groups. Groups co-exist with other groups, having interrelationships for the same reason, essentially to help themselves. 

Kronemyer explains:

“Social interest” … translates as “community feeling,” as opposed to one’s private interests or concerns. … If one has social interest then one evidences or enacts a “useful” style of life. If one does not have social interest then one is self-absorbed and is concerned only with one’s self. Such a style of life is “useless.”

With overt preoccupations with own wants and expectations, people desensitise to the needs of others in the same universe. In coping with the daily stresses of being in the world, they prefer to adopt the selfish style of living. It should be of no surprise then that within the prevailing sense of individualism in a rapidly complicating world, many more people believe that they alone should enjoy the fruits of labours. 

The concentrated devotion to owning more possessions, tilts the balance towards self-interest at the expense of social interest, and ultimately leads to the ethical bankruptcy witnessed in recent times. In many parts of the world, the powers-that-be as well as groups lower on the social hierarchy appears to thus lose their moral compass. 

In the community living of Christian apostles centuries earlier that the scriptures provide glimpses of, the so-called socialistic values seem to be upheld in their fair distribution among the ordinary people in society. In Acts 4, it says:

The community of believers was of one heart and mind, and no one claimed that any of his possessions was his own, but they had everything in common… There was no needy person among them, for those who owned property or houses would sell them, bring the proceeds of the sale, and put them at the feet of the apostles, and they were distributed to each according to need.

It seems logical to infer therefore that, when individuals and groups share resources between them respectfully, neither question of resource control nor of unmet needs arise. True, the simplicity of the earlier times has been lost in the complexities of the present day. However, much of the change in people’s minds from then to now has been in negativity. Attitudes have not expanded to encompass Diversity, but have instead shrunk to in-groups, and competitive self-interest.

The Parable of the Bags of Gold (Matthew 25:14-30) provides insight into an effective process of harnessing abilities that could be relevant even today. It says:

Again, it will be like a man going on a journey, who called his servants and entrusted his wealth to them. To one he gave five bags of gold, to another two bags, and to another one bag, each according to his ability. Then he went on his journey. The man who had received five bags of gold went at once and put his money to work and gained five bags more. So also, the one with two bags of gold gained two more. But the man who had received one bag went off, dug a hole in the ground and hid his master’s money.

The master of the house in the parable was fully cognisant of the differential abilities of his employees. Present day wisdom might have advised investing all of his wealth in schemes guaranteeing maximum returns. But rather than simply boost the bottomline for himself alone, the man in power opted to provide opportunity to all his workers in accordance to their individual abilities, and share the proceeds of their work with them. 

The point is the socialist attitude does not demand doles, but exhorts those blessed with privilege to talent manage those less fortunate. Over the centuries of their existence, the scriptures have taught no different. On his return from the journey, the master in the parable rewarded each person proportionate to the labour they put in. The man that not only did no work, he further justified his action with presumptions that the employer's profit sources were dubious, got not reward but punishment for his brand of selfishness. 

In the context of the riots in London, criminal activity should indeed be dealt with in accordance to law. However, the punishments should fit the crimes. Prejudicial judgements, concerned solely with exercising power, usher in retribution, not justice. The organizational machinery has the positional clout to to make development happen; they perhaps need the will to bring outlying groups into mainstream. 

Similarly, to help others help them achieve their targets, it behoves businesses to also invest in social development; however very few do. When focused on the bottomline, corporate bodies tend to become insensitive to both people and environment. In the drive for immediate gains, they refuse to consider the future effects of depletion of natural resources. They forget that they are dependent on people within and outside the company for their survival; profit making is a distant dream unless goods and services are sold and bought.

In earlier posts on this site, on the effects of businesses reneging on their corporate social responsibility (CSR), we wrote:

The abuse of resources by production and manufacturing houses, like the indiscriminate release of industrial wastes into rivers, toxic gases polluting the air and thinning the ozone layer, have been implicated in global warming, changing climate patterns and new diseases. Indiscriminate hunting has also endangered many animal species … Multinational corporations (MNCs) have at opportunity, flouted human rights and environmental concerns in developing nations… 

Perhaps prophetically, we also wrote about a year ago, that:

Business and political compulsions have created the “conflicts” that divide people. The single-minded pursuit of advantage has retarded healthy development in human relations. It has instead borne bitter fruit – us-and-them polarizations on the basis of race, religion and culture, and vengeful reactivity. The privileged have grown richer and greedier while the poor, more disadvantaged and resentful. The accumulated negativity displays in their eagerness to embrace any cause that advocates the removal of perceived “inequalities” through violence.

In the present context of the outpouring of reactive violence, it seems clear that social interest has all but died as ethical bankruptcy becomes socially generalized. The connivance of corporate and political circles accentuates divides creating polarized groups of haves and have-nots in terms of privilege and opportunity. 

The unhealthy competition for resources raises inter-group tensions, mistrust and perceptions of social inequality. Leaders in democracies need to resurrect the values of justice, liberty, equality and fraternity in social dealings. If they are to forestall the growing disgruntlement spiralling into anarchy, they need to encourage citizenship amongst all groups of society, political, corporate and others. 

References for this post: 

1. “Chapter 4. Life in the Christian Community” usccb.org 

2. Kronemyer, David. “Alfred Adler’s Concept of “Social Interest”” phenomenologicalpsychology.com. Phenomenological Psychology. October 3rd 2009. 

3. The Diva. “CSR 3: The exercise of domination” thedivaatlarge.blogspot.com. TheDivaAtLarge. February 26, 2010. 

4. “The Parable of the Bags of Gold” biblegateway.com. BibleGateway.com. 

Satyam: The promoter’s control

Synopsis: The promoter's power goes beyond the numbers.


In 2004, Ramalinga Raju was the most “feared” man in USA.

Outsourcing

His was the face identified with the rising Indian outsourcing industry, causing job losses in many Western countries.



The National Australian Bank (NAB) is one of the largest individual clients. In offshoring key IT functions to Satyam, the company’s investing heavily in training, transition costs and redundancy exposed them to the risk a service shutdown down with Satyam’s demise.

Satyam’s 85 major clients including Fortune 500 listers have, in similar fashion, suddenly become aware of their own vulnerability. World Bank, Australia’s Telstra and US-based State Farm Insurance have severed their ties. Others like NAB, UN, FIFA, and GE are currently reviewing options.

Regulatory control

India Inc’s credibility is now questioned. The system is new to such issues of corporate governance. In the West, the Boards are perceived as the connecting link between ownership and management of concerns. Corporate reforms focus on empowering them for managerial checks and balances.

Problems in India have generally rooted in conflicts between major and minor shareholders in public service units or in multinational corporations. Hence regulator agencies, like SEBI, are set up to protect minority shareholders from the power abuse by the majors.

The narrow mandate creates regulatory dilemmas over “shareholder democracy” and “micromanaging” company’s internal affairs. In Indian business groups, the promoters tend to hold this minority stake. The Rajus directly controlled only 8.61 percent through family holdings.

In a company managed by the minority group, the process sidelines the regulators. SEBI now waits its turn to grill the Rajus on their corporate malpractices. Clearly Indian regulatory systems have so far lacked teeth.

The sources of power

Theorists say that the promoters have an “amorphous” power that goes beyond the numbers. Other corporate investor groups like the financial institutions that have significant numbers contribute to it by not exercising their clout.

The Indian government-owned financial groups are traditionally passive. Satyam’s foreign investors may have similarly been non-interfering. This facilitated the Rajus’ say in Board nominations as well. It put them effectively in control on all fronts.

Hence they could “structure the business, transfer assets and run a parallel black economy” (Varma). They enriched themselves without opposition or questioning, cheating on taxes and on the legitimate dues of both employees and investors.

Protecting the collective

Bureaucratic institutions in India are generally accused of being ponderous, and slow to react on general issues. The government’s social outlook is pro-poor. The systemic response is far quicker with regard to large-scale disasters, like earthquakes or floods.

But here, the government has moved swiftly to protect the nation from economic disaster created by the face now feared within the country. Satyam’s erstwhile Board was dissolved, its members sacked. Directors nominated from outside the company took charge to salvage credibility for the company and the collective industry.

The government however, won’t provide an economic bailout for the company. Under the new independent Board’s direction, Satyam must rebuild from within to swim the tide - or sink to oblivion.

Comments/opinions, anyone??

References for “Satyam” blogposts:

1. Americans dreaded Raju more than Osama: Experts
2. Satyam assures timely salary payments in January, continuance of contracts
3. Satyam fraud hits National Australia Bank
4. Corporate Governance in India: Disciplining the Dominant Shareholder

Satyam: Addiction to power

Synopsis: Power and its trappings can become an addiction. The habit grows unmanageable because the individual just can’t stop feeding it – off others, employees and investors alike.


New Year turned upside down for thousands of employees at India’s fourth largest IT company. Over 6,000 campus recruits were also stranded jobless. The bitter truth at Satyam Computer Services was that company books were cooked. Ironically, the word ‘satyam’ means truth.

The bogey

Returning from USA in December last year, founder-chairman B Ramalinga Raju raised the bogey of takeover by IBM and others attracted by the company’s large cash reserves of INR 8,000 crores (about 1.649 billion USD). And unless Satyam diversified into various unrelated industry like properties, the outsiders would boost their own profits downsizing it.

Thus the stage was set for the acquisitions of Maytas Properties and Maytas Infrastructure for that same monetary amount. But, unconvinced by the story, irate shareholders blocked the move.

“Satyam is gone”, Raju told his wife as he prepared his resignation letter to the Board of directors. His conscience was too burdened by guilt, he wrote. Not by the imminence of IBM, but his own corporate fraud to the tune of INR 7,800 crores!

The worms

He, his brother Rama Raju, the MD and CEO, and CFO Vadlamani Srinivas quit the company, and were arrested. Investigators uncovered ‘worms’ in plenty:

• Profits had been inflated for years to drive up the share prices.
• The diversification was a cover for the ongoing fraud. Raju’s sons run Maytas - really just ‘satyam’ spelt backwards.
• Before the confession, other Satyam directors sold off company shares.
• Satyam’s foreign placements have based on fabricated profiles.
• Amongst the 53,000 listed employees, about 10, 000 names may be false.
• There may have been complicity in the scam by external auditors PriceWaterhouseCoopers, beside about 45 banks effecting various deal transactions.

The power fulfilment

Fact is the much-touted cash reserves didn’t exist. In years of ongoing fraud, millions were diverted into real estate. Investigations revealed about 10,000 acres of benami property - held in the names of various members of the Raju extended family.

Power corrupts, said Hobbs, and absolute power corrupts absolutely. The Raju coterie occupied all the top spots of company management, and operated by 'groupthink'. Corporate governance meant the Chairman-CEO made decisions, and others acquiesced. Those who could have questioned the fund diversions - accountants, auditors, banks and Board – were perhaps intimidated by their sense of power, or simply chose not to sour deals for their own concerns.

Power and its trappings can also become an addiction. It leads to compulsive behaviour, which is generally associated with the more identifiable types like eating, drinking, smoking, shopping or gambling. The lack of adequate dopamine in brain’s reward centres leaves them unsatisfied and hence the repetitiveness in behaviour.

The habit grows unmanageable because the individual just can’t stop feeding it off others – like employees and investors for the Satyam top brass. Fulfilment through exercises of power takes command. Despite their burdened conscience, the Rajus have retained a battery of 25 lawyers to defend them. In prison, they object to being lodged with ordinary criminals and demand special treatment!

Cont’d…2