Monday, 21 April 2008

Yadha Raja, Thadha Praja

A few months ago, as part of a preliminary discussion on a Consultancy Assignment, I met an Indian Expatriate Entrepreneur in Kuwait. He was running a mid size organization trading in oil field services/oil projects materials and was quite successful with an organization that had nearly 200 employees, mostly Indians.

During the course of the discussion he lamented that his employees were dishonest and did not miss an opportunity to make a quick buck behind his back, while compromising the organizations interest. There were the usual fudging of claims by the sales people, leakages in the warehouse, sales people showing a discount in the sales invoice while actually not giving the benefit to the customers, employees holding multiple jobs......................the list was endless. He ranted on and on for nearly half an hour and I empathised with him.

When I got an opportunity to get a word in, I asked him about the nature of his business and how he made the money starting as a low level entrepreneur.

He said, "Rajan, my nature of business is simple. I have an arrangement with many project managers who are in charge of major and minor oil field projects in Kuwait. We have an understanding in that the project manager over invoices on quantity and price on almost all the projects. When the project is being wound up, rather than returning the materials officially,the project manager sells it to me at half the price, which I in turn resell it. Also me and the project managers split equally the extra profit made on over invoicing the materials in the first place"

I quietly asked him, " Sir, have you realized something? You have built an entire business on unethical practices and dishonesty. How can you then expect your staff to be honest?"

Yadha Raja, Thadha Praja

The leader has to maintain high ethical standards and should possess a sound value system

P.S: I didn't get the consultancy as a result of my statement. But I have no regrets. Any payment made by him would have made me tainted too and I don't want such a stigma

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