Measuring Corporate Social Responsibility

Vacuum is a space empty of matter, but cannot be explained without matter surrounding it. Antimatter is explained as antiparticle within matter and outside of it cannot be even thought about. Non-existence is relative to existence. All of them are in the same plane – matter. This is the law of nature. This is a concrete state where matter predominates and in a gross level of existence. ‘Existence’ is a matter connected to the tangible world of WYSIWYG. A nano-second before the big bang is impossible to imagine with the limitation set for our human mind, to describe what is nothingness beyond matter. Matter in its form of galaxies, stars and planets are said to add up to only 4% and the balance is made up of dark matter [23%] and dark energy [73%]. The Earth truly is in a state of non-existence.

Ethics is subtler than the subtle state. The placards ‘You work for us, we don’t work for you’ carried on Sep. 12, 2009 was the first sign of Ethical Responsibility conceptually realized for the first time in Democracy. It is the subtle state. Voters of Madurai accepting bribes for their votes that stunned democracy is also in subtle state but of opposite value, corruption. Both can develop from subtle state to gross, layer by layer simultaneously to reach the level of substance – one side Ethical Responsibility and the other Moral degradation. Ethical Responsibility is defined as: “the state or position of being responsible for the resources entrusted to the people to run a government of the people, by the people and for the people, including the delegation of authority for the governance of the said resources to those who are entrusted with the usage.”

Substance is the result of creative process from a subtle state ‘you work for us, we don’t work for you’ to a gross level – Ethical Responsibility. Having created the substance called ‘Ethical Responsibility’ Action process must start. Quoting Mr. Joseph E. Murphy [Review of the OECD antibribery instruments: compilation of responses to consultation paper: 31 March 2008:] “One need only look at the record at Siemens (whose code of conduct was described as the ―read, laughed and filed code), or the long, legalistic (and ineffective) code that existed at Enron to see the great danger in such sweeping conclusions.” Substance, in the form of Code of Conduct, was ready but Action process was ineffective as it remained in a state of insentient. The very purpose of creation is Action. When it remains insentient Morality loses its ground. Substance remains inert.

Knowledge is the goal of ethics. Ethics is the kernel, the core that stabilizes the Earth to rotate continuously around the Sun. From the subtle state of ‘you work for us, we don’t work for you’ each layer is added, People select a candidate, ensures powers are retained by the people, entrusted with the delegation of authority, subject to scrutiny of the constituents for maintaining the Ethical Standards, in order to establish as Jefferson says: “Governments are instituted among Men, deriving their just Powers from the Consent of the Governed.” The just powers of the Trustees so elected is the ‘Fiscal Responsibility‘ and the threshold values that go with the delegation of authority is the Accountability. Fiscal Responsibility – Individual entrusted to manage and administer the resources authorized by the Ethical Responsibility for the benefits of the people.

Anything outside the substance Ethical Responsibility is Fiscal Responsibility. The state of existence is always in a state of duality. Being part of the Ethical Responsibility when entrusted to handle the Fiscal Responsibility the same person turns out to read, laugh and file the code of conduct. Corporate is part of the Fiscal Responsibility. When Corporate tampers with the Ethical standards it is no different from the voter who accepts a bribe and hands over the powers for a pittance. When environmental degradation takes place the core crust of the earth is affected, coughs and limps, stutters and fumes, arising out of ignorance of cost consequence. So does  Corporate or Government when the Ethical Responsibility is ignored. Corporate Social Responsibility therefore is the creation of Ethical Responsibility as substance with quality. The very purpose of creation is to Act upon. When the Action collides with the substance called Ethical Responsibility pure energy follows as a result. That process is Governance when Accountability is visible by the Action Process. As John Kennedy put it, ‘that goal will serve to organize and measure the best of our energies and skills’.

There is an old Chinese saying – if you find a student doing something wrong, search for his teacher and punish him. The entire Charles Ferguson’ s Inside Job of estimated $20 Trillion black hole can be attributed to the Rating Agencies and Regulatory Authorities. Corporate Social Responsibility or Business Ethics is inherent to the core of Ethics. Corporate Governance is the Operating Systems, Business Ethics is the threshold values and Corporate Social responsibility is the Public Reporting.There must be a mandatory grading of Rating Agencies and Regulatory Authorities so that their Governance efficiency is graded first before they embark upon grading or be a watchdog of the Corporate or the Governments. Anything outside the core of ethics is Fiscal Responsibility, including the three wings of the Governments, Legislature, Judiciary and the Executive. Every department Corporate or Government and every person in-charge must have a mandatory grading imposed upon them by instituting Article 10 of UNCAC Public Reporting.

‘Free enterprise is an expression of freedom, whereas Ethical Responsibility is an expression of liberty, that threshold values emanate to bridge Ethical and Fiscal Responsibility.

Jayaraman Rajah Iyer

Author: Based on the book Inactivity Based Cost Management: How to measure: Measurement of Intangible: Governance, Ethical & Fiscal Responsibility and Accountability:


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Published by jayar

Author - CorporateMOM - Sustainability of Corporate Stability

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