The world has been a witness to instances where governments have violated the norms of probity and have indulged in acts of impropriety and unethical practices. Corruption has brought down several governments. However, a majority of the politicians do not seem to have learnt lessons. In India, corruption has permeated different levels of society. The recently concluded ‘India Corruption Survey 2019’ indicated 51 per cent Indians paid a bribe in the last twelve months.

With history-sheeters being routinely elected to our legislatures, the world’s largest democracy certainly deserves better. Successive governments at the Centre, irrespective of political affiliation or ideology have done precious little to improve the sorry state of affairs. The conscience to act ethically and honestly should come from within. The earlier Government was helmed by an economist of impeccable integrity. However, ministers in his coalition Government were charged with several acts of malfeasance.

Many big-ticket corruption cases had stained the earlier dispensation. Riding a crest of public angst and resentment, the present Government came to power making several claims of a corruption-free India. The Government may be well meaning but its recent actions have belied its intentions. It has dealt severe blows to the basic electoral funding process – subtle changes that can decide the kingmakers of India’s corridors of power. The earlier Government had introduced the electoral trust scheme.

Successive Governments have tried to create a smokescreen between corporate donors and their intended beneficiaries. However, encouraging anonymity and fostering transparency are incongruous. Such measures will open the floodgates of slush money in the system. Before launching Electoral Bonds through a notification on 2 January 2018, four pieces of legislation were amended – the Representation of the People Act, the Companies Act, the Income Tax Act and the Foreign Contribution (Regulation) Act, 2010 — through the Finance Acts of 2016 and 2017.

By introducing a new proviso under Section 2 of FCRA, 2010 through a Money Bill, it was stated that an entity with less than 50 per cent foreign-held equity would cease to be a ‘Foreign Source’ and it was given retrospective effect since 2010. This may lead to a deluge of Foreign Exchange inflow with strong lobbying groups, which, in turn, may be detrimental to the interests of the nation. The Election Commission of India and the Reserve Bank of India had both questioned the constitutional validity and legal sanctity of such a scheme. However, both have been tut-tutted into silence with specious arguments.

With only a single political party against the scheme, strong evidence against it has lost traction. The case registered by some civil society groups is pending with the apex judicial body. It seems, people are yet to wake up to the enormity of the situation. A person is also expected to have the highest levels of integrity in his personal life. He should value each relation with utmost good faith and honour each commitment as far as practicable. Integrity is the cornerstone of an individual’s persona. A man of integrity is accorded the exalted status of an evolved human being. By setting lofty moral standards and steadfastly adhering to them, a man of integrity clearly establishes the charter he deems sacrosanct.

The basis of any business contract is mutual trust. However, as it is practically not feasible to know the counterparty at all times, buyers-sellers approach Banks and Financial Institutions to act as intermediaries. Sophisticated instruments of trade have evolved with time and the relevance of banks have also increased concomitantly. However, it is quite unfortunate that people’s trust in banks has plummeted. The corporate landscape is replete with examples where high-flying and respected captains of the industry have had to bite dust following the ignominious expose of their wrongdoings.

Names that spring to mind are Rajat Gupta (convicted on charges of insider trading), Enron bankruptcy (2001) and several others. People who were considered righteous were found to have feet of clay. Ms Chanda Kochchar, who until recently was considered the doyenne of Indian banking, has had to undergo tremendous humiliation due to certain acts of indiscretion. The USD1.4 billion fraud at Punjab National Bank speaks volumes of the poor levels of integrity that have afflicted certain sections of the workforce.

The way the banking system is misused by a few fraudulent clients erodes the faith of the people in banks per se. As bankers, we must be able to identify the genuine, creditstarved potential business plans and provide the requisite support for the growth of the economy. As custodians of people’s money, we are expected to lead lives of financial probity. Integrity is of paramount importance in all professions, more so in our roles where we have fiduciary duties to several stakeholders. Disproportionate accumulation of assets along with crimes like insider-trading and defalcation of funds severely destroy the image of erring officials, in particular, and the entire workforce, in general.

Having an overarching regulatory body for a sector or instituting in-house vigilance panels does help check certain misdemeanours but the basic urge to be honest and lead a life of integrity should stem from within. During the global financial crisis of 2008, several financial organizations had committed themselves to actions that defied basic financial prudence. As the mist cleared and the excesses of high-street banks became clearer, the world realized the underbelly of financial lobbying that had been clamouring relentlessly against tighter banking regulations. The political class, high on rhetoric, tried to endear itself to the aggrieved masses by making disparaging comments about banks.

An ex-French President lambasted banks. One might infer the President as a champion of Bank regulation. However, leading economists and experts have observed that such words fly in the face of actions taken – France had been consistently opposing any tightening of regulation. These words and actions (inaction?) deeply erode people’s faith in the integrity of Financial institutions. Efforts are being made to win the trust of the people. Closer home, the regulator has forced Asset Quality Review (AQR) for Banks and the Government has introduced the landmark Insolvency and Bankruptcy Code. To allay the mistrust of the masses, everyone seems to be talking of a second AQR for Non-Banking Financial Companies (NBFCs).

Though it may sound cynical, the nub of the matter is that integrity has become a casualty in almost every profession. Unethical practices in certain sections of healthcare, finance, politics and education (just to name a few) have hollowed out the true potential of each of these fields in nation-building. In sum, the cult of integrity has to be felt and seen as the sine qua non of life. Without integrity, life ceases to be meaningful. The purposeful essence of life gets lost.

Celebrated ICC Umpire, Simon Taufel has dedicated a chapter titled “Leading with Integrity and Values” in his new book “Finding the Gaps”. The importance of ethics and integrity can be assessed when we find that leading educational institutions (including renowned management schools) drop traditional courses in favour of courses on Integrity. With academia serving as the feeder to industries, it seems both have concurred on the importance of integrity. Strong anti-graft posturing by India Government, along with a host of contributing factors, has helped India inch upward in the latest Corruption Perception Index (CPI) of Transparency International to a global ranking of 78 among the comity of nations.

We must realize that a lot of work has to be done to improve the basic quality of honesty (a quality that is inculcated and drummed into us since childhood by our parents). While the outlook is challenging, I firmly believe with concerted efforts and through conscious choices we make every moment, we can lead the life of impeccable integrity- that will reinforce our faith in the sayings “Integrity- a way of life” and “Virtue is its own reward”.

(Concluded)

(The writer was formerly with TCS and now works for a major bank. The views expressed are personal)