Ethics of Business during the Pandemic

Business and Ethics are the two propellers that make the economy of a country or of the globe go steady and fly high. But both have to be balanced. Any business that has built-in mechanism and continuously promotes strong corporate codes of ethics will be more prosperous in the long run because of commitment to sound moral attitude and behavior. Let me look at ethics of business with the lens of the covid-19 pandemic.

Pandemic Situation:

A little chronicle of events could set the backdrop. Covid-19 was first identified amid an outbreak of respiratory illness cases in Wuhan City, Hubei Province, China. The World Health Organization (WHO) was notified of it on Dec 31, 2019. And WHO declared the  Covid-19 outbreak as a global health emergency on Jan 30, 2020; and declared it as a global pandemic on Mar 11, 2020. In one year, the world has lost 2.6 million lives to corona pandemic.  On the Indian front, already on Jan 30, 2020 the first case of Covid-19 was reported in Thrissur, Kerala. People flying in from abroad were bringing in Covid-19 illness. Around 8:00 pm on Mar 24, 2020 the Govt of India ordered a nationwide lockdown for 21 days, which went on with many an extension and even now we are not totally out of it, though there is some relaxation in practice. But already the second wave is threatening at our door steps.

European countries like Italy, France, and Germany and South American countries like Brazil and north American countries like the United States of America have been severely affected.  USA alone has lost about 200,000 people to Covid-19 pandemic. Now the second wave is reported in Europe and the USA. African and Asian countries seemed to have suffered relatively less loss of life. In India the death rate is reported to be 1.5% of covid affected people. The number of deaths in India is 7.73 per 100,000 population, compared with 64.74 in the United States. Much is attributed to the immunity enjoyed by people in Africa and India – The immunity is not artificially induced after the break of the pandemic but already existing immunity before the calamity.

Confusion:

To add fuel to the fire, the lack of knowledge and inability to develop strategy made things worse. First, the medical explanation was that the virus would affect the lungs, and later it was revised to say that the capillaries around the lungs that carry oxygen to the rest of the body from the lungs get coagulated and that is the problem, we are told. Later we were informed that the virus would affect the brain. So, you could imagine how many died out of fear of corona, than by actually affected by corona. And now, even the vaccine does not eliminate the fear of people – Rumours have it that the vaccine might alter one’s DNA and many are scared of taking the vaccine and a few deaths due to reaction after taking the vaccine exaggerate the fear.

Havoc or Opportunity:

In this situation of confusion and conflicting information, many worked on their windfall.  One could hear about the package deals in the hospitals. The package deals, especially, in many private hospitals ranged from a few thousands to a few lakhs. According to The New Indian Express (04Jun2020), “The Association of Healthcare Providers, which claims to represent vast majority of private hospitals, has suggested that for patients in general wards the fee per day should be fixed at Rs 15,000, in wards with oxygen it should be Rs 20,000 per day and isolation ICUs can cost Rs 25,000 every day.” And with ventilator support it would be Rs 35,000 per day. But the actual bill, for the prescribed period of 14 days in quarantine, would be much more. 

For example, PPE (Personal Protective Equipment) was much discussed with regard to medical bills charged in some private hospitals. A 60-year old person was admitted in a private hospital in Delhi. At the end of the 30-day stay the 122-page bill indicated Rs 16+ lakhs. The amount paid for PPE alone was Rs 2.9 lakhs, that is about 18% of the bill. A 74-year old person, who was admitted in a Mumbai hospital died after 13 days and the bill was again Rs 16+ lakhs. The actual rate per PPE was Rs 362 (including an N95 mask and a triple-layer mask) as paid by the public sector in Tamilnadu and the price could vary up to Rs 520 per set. According to the Federation of Indian Chambers of Commerce and Industry (FICCI) three or four PPE would be needed per patient per day, depending on whether the patient is in an isolation ward or an ICU. But the bill charged would imply that a patient was charged per day Rs 10,000 for the PPE alone.

And what were the medication administered to the patients? Initially the USA imported from India large amount of hydroxychloroquine, which was used in treatment for malaria, rheumatoid arthritis, for treatment of covid-19 affected. And other, micronutrients such as Vitamin D and C along with Zinc were given to the covid-19 affected. These play a role in building up the immune system and to promote health and nutritional well-being.

Ethics – Business Ethics – Ethics in Emergency/Natural Calamity:

Now, let us look through the lens of ethics. Ethics is not simply distinguishing between right and wrong. It is making sure that what we do is morally correct and acceptable. In simple language, ‘I do not flourish at the expense of my neighbor’. Ethics is founding one’s life and work or business on values that recognize the rights, equality, dignity, wellness of others in the society.

When we think of business ethics, we need to reflect on our policies and practices in what we do. It is not growing exponentially in profit nor is it gaining monopoly suppressing other competitors, but it is building a network with fellow business people and agencies. Business ethics is based on one’s responsibility. It is not mere CSR, that is Corporate Social Responsibility, which at times is understood as offering 2% of the profit for social causes. It should not be an anesthetic agent to quieten one’s pricking conscience. But it should be based on the principle of Ubuntu, which is based on the philosophy: ‘I am because we are’. The business world is built on the resources of the society comprising common people and one’s business should not become detrimental to their existence and growth.

Karl Rahner, the German Theologian, cites a simple example of banana. The banana grower toils day and night, struggles in rain and shine. And how much does he get in return for his produce? India is number one among the top 10 banana producing countries. But India is not on the top 10 banana exporting countries. It is the Central America. Ecuador is the largest exporter of bananas. Its exports has increased from one million tonnes in 1985 to 3.6 million tonnes in 2000.  Though it is an enormous business, it is based on abysmally cheap labour. A banana worker in Central America would make as little as USD 1.2 per day. Most of the money goes to the fruit/corporate company, which offers low wages in order to make more money. When you purchase banana for a dollar, what the farmer gets would be a few pennies. At the end of the day it is the company or industry, the so called middlemen, that benefit from the global fruit trade. Is it morally right? The other issues are lobbying, bribery, intimidation, discrimination etc. Sometimes it is the attractive advertisements that appeal to one’s emotions, rather than to one’s critical rational analysis.

The business ethics would comprise, among other criteria, credibility, creativity, and capability. Creativity is to attract attention, what is theoretically known as USP (Unique Selling Proposition); credibility is trustworthiness among the customers; and capability is fitting with the affordability of the people. The principle and foundation of any business is commitment to the good of the common people. The myth that a company creates; and the reality, that is the insiders information, should synchronize. Jesus asks his followers a relevant question that could be adopted to business world. He asks two questions: i. What do people say that we are?; and ii. What do we say about ourselves? Sometimes we create an illusion that our business or company is the most reliable but there would be a lot of things in fine-prints or hidden agenda. The simple people would be often taken for a ride. Hence, business with ethics is not a strategy but a way of day-to-day operation. The customer should be considered as business partners – Common people do not survive because of any business, however influential or global, but each business prospers because there are customers.

Any natural calamity is grabbed as golden opportunity in business. Tsunami occurred in December 2004 – It was called the golden tsunami. So many businesses in construction, real estate etc thrived and bloomed. And now corona has been a medical tsunami. Even before one could decipher the nature, impact, and spread of virus, medical world started fabulous business. Even when some herbal medical schools or even Ayurveda medical system assured cure or relief, they were eclipsed. Hospitals, if not all, started package-deals. Natural calamity seems to have two faces: One, the sympathetic one, which extends helping hands; and the other, exploitative one, which grabs the opportunity and focuses on profit. And the CSR looks like calming down the uneasy conscience.  

Quest and Quench:

Any business person should be able to discern between quest and quench. The quest for making money and the demand to quench the needs of the people at the bottom of the social pyramid, who suffer and are exploited, should be balanced. The realization that they also have the right to live a decent life in the world should be the guiding force. The people at the margin of the society need uplift from the bottom of the social ladder to the higher rungs of economic growth. And the corporate businesses are preoccupied with competitors and the race is for prominence, nay for monopoly. In contrast to the top-down control of the business world, the Jesuit business schools like LIBA, would teach, recommend, and promote bottom-up liberation and economic freedom, where the focus is not the profit but the good and prosperity of the people.

What one needs to know to be a successful and ethical business leader, especially during natural catastrophic situations such as cyclone, tsunami, pandemic etc are: 

• Do not compromise on your products/produce. The quality at affordable price would be a saving factor for the common person.
• Understand and learn the good from your competitors. It is not making more profit but it is gaining more blessing from the customers/consumers.
• Promote your services more than your franchises. It is good to remember that it is the people who are the foundation of any business and their satisfaction brings up the edifice of one’s business.
• Invest on the formation of the staff. The staff are not merely the hired employees of the company but they are the coworkers in business. They need ongoing formation to share the views of the company especially the ethical values. The staff are the effective catalyst to build a great business.
• Draw insight from the original spirit of organizational structure and design. Most of the time, the company starts for a particular purpose to help the people but later it gets diverted from the road of service onto the express high way of profit making. Be familiar with the roots of the company and then, branch out and bear fruit in the same spirit of service.
• Use capital and cash flow wisely. Be generous with the salary and working conditions and packages of the employees. Do not mesmerize the customers with superfluous free offers. It is good to remember the appreciation of the employees; and the satisfaction of the customers bring in more to the investment than the cash.
• Be professional with regard to the fundamental principles of accounting and finance. Tax evasion is not going to give you peace of mind. But the tax you pay might meet the needs of the needy to a certain extent. And many ethics-filled drops of various companies and corporates make the lives of the poor full and content.
• Respect your customers. I am convinced that a business person rides on the rising surf of competitive ocean but it is the well-wishers and blessing of the customers that make him/her enjoy the surfing and finally brings him/her home with satisfaction. Do not cheat nor exploit the poor and the helpless. The tear of the poor could burn down anything, even concrete buildings and mighty businesses. 
• Pay fair price or wage to those who brings in products. It is good to remember the words: The pleasure of the rich are bought with the tears of the poor. I recommend the book Who will cry when you die by Robin Sharma (1999): The book reminds us that our life should have a purpose and our business should strive for the good of all.
• Be generous with the CSR. There are about 2,000 references to the poor in the Bible. For example, the book of Proverb says: Those who give to the poor will lack nothing, but those who close their eyes to them receive many curses (Pro 28:27). 
• Follow the good examples from an individual as well as from a MNC. I was touched by two news clips during the pandemic: i. A garland maker in Chennai leaves one or two garlands at his shop when he closes business at night. It is meant for any emergency if anyone dies at night and for those who cannot afford to buy garlands; and ii. A lady around Coimbatore in Tamilnadu is ready to provide free food for those who do not have anything to eat. Often the Haves are tightfisted but the Have-Nots open up their hands to the needy.  This is what Vallalar of Vadalur said: I collapsed whenever I saw the withered crop. Compassion is the compass that should navigate one’s business whether it is the time of prosperity or of penury. This is ethics with excellence.

Money vs Happiness:

Sometimes I ask myself the question: Why do some wealthiest and powerful people commit suicide? For example, Brutus (42 BC), Roman politician and assassin of Julius Caesar; Cleopatra (30 BC), Queen of Egypt; Robert Clive (1774), British conqueror of India and the founder of the empire; Adolf Hitler (1945), Nazi Germany’s leader etc. The list includes V.G. Siddhartha (2019), India’s Coffee King, who was the founder of India’s largest coffee-shop chain, Coffee Day Enterprises, with USD 572 million-in-sales business and more than 10,000 employees.

When it comes to money, we could realize, to a certain extent you own the money, beyond that limit money owns you. As R.W. Emerson would put it: “Without the rich heart, wealth is an ugly beggar”.  Money brings about plenty of wealth and power; but happiness brings in satisfaction and fulness of life. The choice is between plenty of wealth and fulness of heart.

We could ask ourselves two questions everyday: The first question is in the morning, before we begin the day: What good could I do today?; and the second question in the evening, when we end the day, is: What good have I done today? These would be the teaching and learning process in a business world and would rudder your business ship even amidst stormy ocean of crisis and unhealthy competition.

Be a trend setter for the better. I wish each one of you to be the leader instead of being a follower. As Scott Peck says in his People of the Lie, people tend to imitate success stories and they try to follow the profit-making powers, since “it is simply easy to follow, and much easier to be a follower than a leader… when he assumes the role of follower he hands over to the leader his power: his authority over himself and his maturity as decision-maker. He becomes psychologically dependent on the leader as a child is dependent on its parents.” You need to be a leader of conviction and not a follower of imitation in a crowd. 

In the business world, ethics is the ladder that brings in collective responsibility. And each rung on the ladder of profit should be the welfare and happiness of our customers. In the life balance, ethics should weigh more than the salary and the wealth. And in the business world, business ethics should be more precious than success of profit.

The best set of ethics for day-to-day life would be: Be honest when in trouble and simple when in wealth; be polite when in authority and be silent when in anger; instead of amassing wealth, earn a few friends who are unconditional; and ‘wasting’ quality time with your family is more important than spending precious time with your business partners. 

Francis P Xavier  SJ

12Mar2021

Cf. BEACON @ LIBA: Inaugural address for seminar on “Ethics of Leadership during the Pandemic”, 12Mar2021.