Dinesh Thakur
The national culture of unquestioned obedience to authority along with an acceptance of shoddiness must not be used as an excuse to overlook violations of corporate ethics, says the Ranbaxy whistle-blower
During my tenure at Ranbaxy, I was surprised by the unchallenged
conformity to the poor decisions of senior leadership. Ranbaxy was my
first Indian employer following my tenure at two different American
corporations. Reflecting on this experience from cultural and
comparative perspectives highlights the organizational peril of such
behaviour.
It is in our culture to respect authority. We are taught from childhood
to listen and obey our elders. We grow up with the notion that our
managers, the function heads and business heads within our respective
organisations, know more than anyone else. Hierarchy is revered,
authority is seldom questioned. Those who dare to ask questions are
renegades.
Asking questions
My investigation into the discrepancies between Ranbaxy’s records and
the data filed with regulatory agencies in 2004 showed me how wide the
questionable behaviour was within the organisation. It was systematic.
It had penetrated the DNA of the organisation.
I often asked myself how was it that smart, well-intentioned people
tolerated systematic fraudulent behaviour? This question led me to the
Milgram Experiment, which was conducted by the Yale University
psychologist, Stanley Milgram, in 1961. In the 1971 paper summarising
its results, he stated:
Ordinary people, simply doing their jobs, and without any particular
hostility on their part, can become agents in a terrible destructive
process. Moreover, even when the destructive effects of their work
become patently clear, and they are asked to carry out actions
incompatible with fundamental standards of morality, relatively few
people have the resources needed to resist authority.
Why is this important? In my view, as much as we value and respect our
traditions, it is imperative that we not lose sight that being a
“renegade” — a nonconformist — is acceptable when motivated by
honourable intentions. It is acceptable to think that managers possess
neither omniscience nor omnipotence. Our colleagues who are at the
lowest rung of the corporate ladder sometimes know more than we do about
an issue. It is important to encourage them to question authority, even
if we find it uncomfortable and disconcerting.
The other aspect of my search for answers led me to introspection. What
kind of society have we become? D.G. Shah, the secretary general of the
Indian Pharmaceutical Alliance, recently penned an elegant op-ed that
called out our culture for tolerating corruption, even with needs as
basic as drinking water, personal hygiene, food and medicine. Why is it
that we have come to accept poor governance, corruption, incompetence
and entitlement as facts of life?
Compromise
I think it has a lot to do with how we lead our daily lives. Despite an
exhaustive search, I have not been able to find proper translation for
the concept of jugaad. It seems to exist only within our society.
While Wikipedia describes it as a term applied to a creative or
innovative idea providing a quick, alternative way of solving or fixing a
problem, I think it misses two important aspects that I have
experienced during my tenure working in India. First, there is an
implicit understanding that because the solution needs to be quick and
creative, it is acceptable to make a compromise on the quality of what
is produced. Second, because we focus on making “it” work just-in-time,
we never think of making the solution last. That leads to poor quality.
Not 100 per cent
The other pervasive attitude is the notion of chalta-hai. It is
very hard to describe this attitude to someone who has not experienced
life in India, but to those of us who have lived here, we know what it
is. We have come to accept that if it is 80 per cent good, works 80 per
cent of the time, and does 80 per cent of what it needs to do, it is
acceptable. This attitude manifests itself in almost every facet of
common life in India.
Clearly, we are now beginning to see the results of our approach with jugaad and our attitude with chalta-hai. They are not pleasant. Recent events hold a mirror to our face and ask us whether we like what we see. I certainly don’t.
As Jayson Blair, the disgraced former reporter at The New York Times,
said, “Rarely are our choices in life presented as a major dramatic
question. One step at a time, [they come as] minor choices, that may not
even seem related to the ultimate outcome. Once that fear [of getting
caught] disappears with the minor choices, it is easier to cross that
big ethical line.”
It is not the big ethical line that we need to worry about. Rather, we
need to worry about all the thousands of little situations we are
presented with in our daily lives, to which the easy answer seems to be jugaad or the attitude of chalta-hai.
Unless we develop an attitude of “do it right the first time” and
inculcate this expectation into our daily life, we will continue to see
the same image in the mirror every time an event like the one on May 13
holds it up to our face.
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