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J Bus Ethics (2011) 104:73–81

DOI 10.1007/s10551-012-1264-z

Business Ethics in the South and South East Asia


Vasanthi Srinivasan

Published online: 14 March 2012


Ó Springer Science+Business Media B.V. 2012

Abstract This article attempts to understand the state of Malaysia, Bangladesh and Sri Lanka is significant. The
teaching, training and research in business ethics in the research focus across countries in the region is weak. The
South and South East Asian region. The countries surveyed high convergence on the top issues in Business Ethics,
are Bangladesh, Bhutan, Cambodia, India, Laos, Malaysia, across respondents in different countries, is worthy of
Myanmar, Nepal, Pakistan, Sri Lanka, Thailand and Viet- mention.
nam. The diversity across countries in the region is high in
terms of economic development, political structuring and Keywords Business  Ethics  Asia  CSR  Research 
human development. The degree of privatization and Training  Teaching
globalization is varied across countries since each of them
is in a different phase of transition. In an earlier survey on
Business Ethics, published in 1997, India was the only Introduction
country from this region that was represented. In the cur-
rent survey, 12 countries from the South and South East The region of South and South East Asia included Ban-
Asia are represented. While Business Ethics in academia is gladesh, Bhutan, Cambodia, India, Laos, Malaysia,
widely present, Corporate Social Responsibility, Gover- Myanmar, Nepal, Pakistan, Sri Lanka, Thailand and Viet-
nance and Sustainability though relatively new appear to be nam. South Asia alone is home to a quarter of the world’s
growing rapidly. Business Ethics courses tend to focus on population with a large number of the world’s poor, and its
functional ethics, managerial ethics and implementing contribution to the world’s GDP is about 5%. While tra-
codes of ethical conduct. Across the 12 countries, Business ditionally many of these economies were agrarian, in the
Ethics is taught either as an elective or a core course in last two decades, the contribution of industry and services
most institutions. Training emphasis across countries is to the economy has increased. Yet, agriculture continues to
varied. While training institutions in India appear to be play an important role in these economies.
high, the presence of multinational consultants in Thailand, Since the late 1980s, many countries in this region have
embarked on the process of liberalization and globalization
and the impact of their interconnectedness with the global
economy are still unfolding. However, the gap between the
rich and the poor in these countries has significantly
increased as a part of the globalization process. The recent
global financial crisis and its impact on the export-oriented
sectors of these economies are just beginning to recede.
Against this background, leaders have expressed the need
for ethics, governance, responsibility, justice and peace in
business, civil society and Governments.
V. Srinivasan (&)
Indian Institute of Management, Bangalore, India Using the World Bank’s data on Gross National Income,
e-mail: vasanthi@iimb.ernet.in the countries surveyed are classified as follows:

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74 V. Srinivasan

Low income Lower middle income Upper middle income The first national survey of ‘Corporate Responsibility:
economies economies economies Teaching and research in management education’ was
($995 or less) ($996–$3,945) ($3,946–$12,195) conducted in 2007 by Partners in Change, a not for profit
Bangladesh Bhutan Malaysia
organization in India. 104 of the top-ranked management
Cambodia India
institutions participated in the survey. The respondents at
these institutions were heads of institutions, academic
Laos Pakistan
heads or senior faculty. The survey covered institutions in
Myanmar Sri Lanka
18 states out of the 22 across the country. 57% of the
Nepal Thailand
institutions surveyed had a compulsory course that was
Vietnam
related to corporate responsibility. This could be a course
Ref: http://data.worldbank.org/about/country-classifications/country- on Business Ethics, Corporate Governance or Corporate
and-lending-groups#Low_income (2011)
Social Responsibility. 37% of the institutions mentioned
that their faculty was engaged in research in the field of
As is evident from the above clustering of countries, the Corporate Responsibility. The study concluded with an
region is fairly diverse in terms of economic development, observation: ‘CR education may not be in a nascent stage
human development indicators, political structures, edu- in India but seems to have more ground to cover’ (Partners
cation systems and social milieu. A number of countries in in Change 2007).
the region have witnessed long years of political strife, While a number of cross-cultural comparative studies on
insurgency, authoritarian governments, civil unrest and the CSR and Ethics between the South and South East Asian
challenges of globalization. countries and other countries are available, there is no
In this article, an attempt is made to understand the state research which outlines the state of business ethics research
of teaching, training and research in the field of Business in the region. While there are consulting organizations in
Ethics. First, a brief overview of literature in the region and CSR, business associations and not for profit organizations
methodology for the study is provided. Then, the manner in that conduct training programs in the region, no compre-
which business ethics is defined will be examined. Then, hensive document or report listing these organizations is
the prevalence of business ethics in the field of teaching, available either at the country level or at the regional level.
training and research will be addressed. Major ethical It is quite evident that there is a paucity of research on
issues that are likely to emerge over the next 5 years will teaching, training and research in South and South East
be explored and finally an assessment will be made of the Asia.
implications of these findings for the global discourse on
business ethics and the future prospects of Business ethics
in the South and South East Asia. Methodology

A multi-method and multi-stage data collection process


Review of Existing Literature in the Region was undertaken. The country specific differences in
response to the survey questionnaires were significant. The
While the surveys on the state of business ethics teaching survey responses posted directly on the central website of
and research across the world have received wide attention, the Global Survey of Business Ethics from most countries
it is important to note that there is little available infor- in the region was poor, barring India. Four country level
mation on the South and South East Asian region. In a researchers conducted surveys and interviews in Bhutan,
previous world-wide study of Business Ethics (Enderle Sri Lanka, Vietnam and India. In the case of the other
1997), India was the only South Asian country covered. An countries, both local and international contacts were
attempt was made to provide an overview of the state of the accessed to help in identifying individuals and institutions
field of business ethics in India (Chakraborty 1987), but no that were engaged in the field of Business Ethics. The data
empirical data on India was made available. collection was co-ordinated from India. A pen and paper
Over the last decade, several surveys on ethical conduct survey was done in Vietnam. The researcher did personal
of companies, Corporate Social Responsibility (CSR) and interviews using the survey questionnaire as a protocol in
Corporate Governance have been conducted among large Bhutan, Sri Lanka, Malaysia and India. Telephonic inter-
public companies in Pakistan, Thailand, Malaysia and views were conducted with respondents from Bangladesh,
India (CSR Asia: Future of CSR, 2009). However, studies Pakistan, Nepal, Laos and Cambodia. In India, direct
covering teaching, training and research in the field of mailings along with repeat reminders were done through
Business Ethics were not available for other countries the website www.teachcsr.com which had a large mailing
except India. list. Apart from this, survey questionnaires were printed

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Business Ethics in the South and South East Asia 75

and distributed during events and conferences. In most of ‘Corporate Social Responsibility’, ‘Governance’ and ‘Sus-
the countries under purview, poor Internet connectivity and tainability’. Respondents were asked to list the topics/
limited access to computers were mentioned as reasons for themes that were covered under each definition. The term
their inability to participate in the survey. ‘Business Ethics’ is associated with the personal virtues and
Since most of these countries have no databases of values of managers and corporations. It largely consisted of
Ethics/CSR professionals and many faculties in educa- functional ethics, ethical theories, ethical decision-making,
tional institutions do not explicitly mention Business Ethics codes of conduct and managerial systems and processes that
in their faculty profiles on their website, we snowballed enabled ethical behaviours in organizations. The term
extensively to garner information and gain access to indi- ‘CSR’ was understood largely as responsible behaviour to
viduals and institutions. various stakeholders within the society. Governance was
Another challenge faced was that a large number of largely understood as ‘the systems, procedures, often legal,
respondents to whom the survey questionnaire was sent which allow organizations to be transparent’. The term
refused to respond since their institutions were not engaged ‘governance’ was often used in the context of ‘Corporate
in any significant activity on Business Ethics per se, but Governance’ except for Bhutan where the emphasis was on
were in the field of CSR or community development. governance in public policy and in a Governmental context.
Attempts were made to influence these institutions to The term ‘Sustainability’, for the respondents encompassed
respond to the questionnaire as that in it-self would be all aspects pertaining to ecology and environment, climate
valuable data for the study. It was indicated to them that a change, standards and pollution. The jargons used were
broad definition of Business Ethics included CSR, corpo- common and understandable as English was the medium of
rate governance and sustainability, which a number of the instruction in most Business schools in the region.
respondents claimed they were engaged in. To overcome The terminology used to describe business ethics varied
this problem, a large part of the data collected in South across countries and within some countries as well. In
Asia, particularly from Laos and Cambodia was done Bangladesh, where Bengali is the national language the
through interviews. A total of 110 respondents completed term used is ‘Vyapar Noitikata’ and in Nepali, it is ‘Noi-
the survey in India and Vietnam. The remaining respon- tikta’. In Malay, it is ‘etika bisness’. Working on translit-
dents filled the questionnaires only partly, and the erations for business ethics in languages of different
remaining information was supplemented by emails and countries revealed that in Sinhalese, ethics is referred to as
interviews. ‘Aacharudarumayi’ and in Urdu, it is referred to as ‘ak-
We also used the catalogue of World Universities and hlaqiat Karobaar’. In India, where there are 18 official
Higher education universities in the world to shortlist languages, the term ‘business ethics’ in 7 languages are as
academic institutions in the region to enable further follows:
research.
Two researchers examined all the websites and identi-
fied institutions and organizations that were involved in the
field of business ethics in each country. This research
helped us fill the gaps in information we received as Terminology for Business Ethics in regional languages in India
responses to the questionnaire and to have an inclusive list Language Terminology
of universities and institutions involved in Business Ethics.
In the case of Bhutan, Laos, Myanmar and Cambodia, Marathi Neetimulye
all universities that offered Masters or Bachelors courses in Kannada Vyapara Dharma (business ethics)
Business Ethics were covered. In the case of Malaysia and Neeti Kartavya (ethics)
Thailand, the team had to do an exhaustive web search, as Arthika matthu Vyavahar Dharma
the data collected from the primary research were limited. (economic and business ethics)
The India sample offers the required diversity to generalize Hindi Arthik aur Vyapaar Naitikta
(economic and business ethics)
across the field, given that 85 respondents included 23
Vyavasahik Imaandaari
institutions representing academia, NGO’s, consultants and (business honesty/business integrity)
CSR representatives from corporate organizations. Tamil Thozhil Dharmam (business ethics)
Poruladharam mattrum Vyabhara Dharmam
(economic and business ethics)
Terminology and Conceptualization of Business Ethics
Malayalam Vyavasayika Moolyangal (business ethics/values)
Telugu Aarthika/Vyapara neethi (economic/business ethics)
As far as the terminology for Business Ethics is concerned,
Bengali Vyapar Noitikita (business ethics)
in all countries, the terminology used was ‘Business Ethics’,

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76 V. Srinivasan

Two root words across the multiple definitions which Multinational companies and Sustainable investment have
appear as a key word in different Indian languages are emerged as focus areas in the context of the Not for Profit
‘Dharma’ and ‘Neethi/naitikata’. The term ‘Dharma’ is sector in India. In Thailand, the focus was on Sustainable
unique to Indian thought and has various connotations to it. Tourism, while leadership ethics was popular both in
From an etymological perspective, ‘Dharma’ derived from Bhutan and Vietnam. It appears that the regional variations
the Sanskrit term ‘Dhr’ that means to uphold, support and are influenced by the diversity of respondents who partic-
sustain or to hold together (Billimoria 1991). ‘Neethi’ ipated in the survey. In some cases, the variations rose out
means morality, conduct, right behaviour. The Nepali and of the differing economic priorities of the Government and
Bengali definitions are very close to the Sanskrit term the dominant industry, as is seen in the case of Thailand.
‘neethi’. There were no widely used, regional equivalents
for the term ‘CSR’ or ‘Governance’.
Training in Business Ethics

Prevalence and Distribution of Business Ethics Training as an activity is widely prevalent across the
region. As most of these countries are liberalizing rapidly
In the earlier worldwide Survey of Business Ethics (End- and are now a part of the global supply chain of corpora-
erle 1997), no country besides India was covered in South tions, the pressure from MNCs seems to have impacted
and South East Asia. In this survey, 12 countries have been training. But it is the heterogeneity in the field of training
covered. Business Ethics as a field of study was found in all that is of great significance. In Sri Lanka, training on
countries except Laos and Cambodia. In Bhutan, the term Business Ethics has increased as a consequence of a deeper
‘Business Ethics’ is not used, but instead ‘Ethical Gover- collaboration between industry and academia especially in
nance’ is used. CSR is gaining momentum across the South the context of ethical manufacturing practices. The apparel
and South East Asian region. In countries like Bangladesh, sector in Sri Lanka has been active on the ‘Garments
Sri Lanka, Thailand, Malaysia and India, a large number of without guilt’ program with extensive training interven-
individual independent consultants as well as international tions. Given the strong garment export industry orientation
consulting firms offer consultancy services on CSR, Ethics in Sri Lanka, the collaboration reflects a dynamic and
and Corporate Governance, environmental management, evolving industry academia partnership.
climate change and sustainability. In Bhutan, the focus in recent years has been on good
governance at all levels. There has been an increase in
short-term courses on governance in both the public and
Focus Areas in Business Ethics private sectors. There has also been an increase in short-
term training programs for local government leaders on
Business Ethics is a vast field of study. We found that most ethical leadership.
countries tended to focus on a few areas within the field In Cambodia, the Cambodia Development Resource
that were appropriate in their socio-economic, political and Institute has been engaged in training in the area of peace
educational contexts. ‘Corporate Governance’ as a focus and the role of the media in building peace. Little was
area emerged in all the countries except Laos, Nepal and reported about training in Laos and Myanmar. In Pakistan,
Cambodia. In India, over the last decade, there have been private companies offer training on Ethical compliance,
amendments to company law and new regulatory mecha- CSR and Governance to corporations. Compliance training
nisms have been created. Sustainability was seen as an area is particularly popular given the export orientation of the
of increasing importance in some countries. In Cambodia, country. In Malaysia and Thailand, independent agencies
the respondents felt that business ethics, in part under and individual consultants provide training on CSR moni-
ethical behaviours of corporations, needs to be introduced toring, reporting and implementation. Multinational con-
in the context of the manufacturing industry, the presence sulting firms also provide training on business ethics. In
of which was mushrooming. In Myanmar, pollution and Vietnam, CSR training workshops are organized both by
environment emerged as critical issues within the larger Global Compact Vietnam and other training organizations.
canvas of sustainability. In Bhutan, environment and sus- In India, a number of organizations appear to be offering
tainability have not yet emerged as a concern area. In India, training on Business ethics, CSR and Governance. Apart
training on reporting standards like the Global Reporting from business schools that have dedicated centres for Cor-
Initiatives was widely prevalent. The growth of CSR as a porate Governance, CSR and Ethics that offer short duration
focus area in both training and education has been signif- courses, not-for-profit organizations, industry associations
icant across all countries other than Laos, Cambodia and and professionally certified associations like the Institute
Bhutan. Consumer ethics, professional ethics, Ethics in of Chartered Accountants also offer courses on Business

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Business Ethics in the South and South East Asia 77

Ethics and Governance. Most multinational companies offer Management Schools surveyed had Business Ethics as an
extensive in-house ethics training and education to their Elective course in their under-graduate and post-graduate
employees. The Institute of Directors conduct training pro- education. However, the level of interest among the stu-
grams on corporate Governance for senior executives and dents to enrol in such an elective was comparatively low.
directors of companies. A number of international agencies There has, however, been a slow but steady increase in the
and institutions provide short-term training programs on number of student enrolments in recent years.
CSR, Sustainability and Ethics. Apart from this, there are In Bhutan, business ethics per se is not taught. However,
also extensive training programs provided by organizations there is a module on research ethics in the MBA course in
like Fair Trade (standards defining organizations) and the area of Public Administration and a course on gover-
compliance and certification agencies in the export-oriented nance at the Royal Institute of Management. At the Royal
sector. Industry associations offer courses on the GRI and University of Bhutan, a course on Buddhism and Business
the United Nations Global Compact in partnerships with Ethics is offered in the undergraduate program in the
consultants and international agencies, since many of Indian Business Administration course. The universities, however,
organizations are signatories to this agenda. offer a number of short-term training courses on Ethical
In Bangladesh, the large NGO BRAC offers short duration Governance and Gross National Happiness.
training programs on Governance (public and environmen- In Nepal, business ethics is offered as a module in the
tal). International donor and aid agencies also seem to offer a compulsory course on ‘Emerging Concepts in Manage-
number of training programs in Bangladesh on Governance. ment’ or ‘Business Environment’ or ‘Principles of Man-
Similar to Sri Lanka, there are agencies offering programs on agement’ in the MBA and Part time MBA programs. Some
compliance and global standards with the garments industry. institutes have ‘business ethics’ as a module in the under
In Vietnam, UNIDO is engaged in conducting CSR training to graduate programs also. CSR is being offered by a number
help Vietnamese Small and Medium Enterprises to adapt to of universities either as a module or a full course at the
global supply chain in sustainable production. Masters Level. Corporate Governance is being offered as a
In summary, in the field of training, there is widespread credit course for the MBA program across a number of
and increasing activity across the region. The most prevalent universities.
is CSR training and, particularly, training related to CSR In Vietnam, Business Ethics as a course is offered in
reporting. The code of conduct training is widely used due to several universities both at the graduate and under graduate
the presence of supply chain in garment, electronics and level. It is, however, included as a topic or a module in
food products industries, like tea. Some organizations like about 22 different subjects like courses on ‘International
CSR Asia and the United Nations Global Compact Asia- Business’, ‘Corporate culture’, ‘Human Resource Man-
Pacific conduct training workshops on various themes across agement’, ‘Intellectual property rights’ and ‘CSR’. Some
the countries in this region (www.csr-asia.com). There are of the other modules include Leadership ethics, Production
also niche-independent advisory services organizations like ethics, Ethics in Public Relations and Marketing ethics.
CSR Asia which operate across the region. In India, there are In Myanmar, there are three universities that offer
a number of specialized institutions like Business Commu- courses on economics and management. Business ethics is
nity Foundation, Partners in Change, The Energy Research a compulsory course in the BBA programs and an elective
Institute (TERI) that provide a range of training, research course in the MBA program. The course tends to focus on
and advisory services to a variety to stakeholders. The environment and the role of corporations in handling social
Government of India has also adopted a National Voluntary responsibility.
Guidelines on social, environmental and Economic In Cambodia, Business Ethics is not offered as a sepa-
responsibilities of business. A number of training programs rate course. There are faculty who teach ethics as a part of
have been conducted to disseminate these guidelines. The their regular functional courses in the MBA program. The
role of international agencies like the UN and the German situation in Laos is quite similar and the introduction of
Development agency (GIZ) in promoting the CSR agenda is ethics or any other related subjects like CSR is entirely
worthy of special mention. Through bilateral partnerships, dependent on the faculty’s interest and competence to
GIZ works with the Chamber of Commerce in Thailand, teach.
India and Vietnam to impact CSR. In Thailand, there is a great deal of difference across
universities. While few universities offer business ethics as
a compulsory course at the MBA level, more universities
Themes in Teaching on Business Ethics offer it at the under graduate level. CSR is a major com-
ponent in most ethics courses. Out of the 14 schools sur-
Business Ethics is offered either as an elective or core veyed in Thailand, only four offer any courses related to
course in most countries in the region. In Sri Lanka, all 12 Business Ethics: two offer courses on Business Ethics, one

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78 V. Srinivasan

on Sustainable Tourism and one on CSR and Ethics. Both System often offered courses pertaining to CSR, Business
the courses offered on Business Ethics are compulsory Ethics or Governance. Many business schools in Malaysia,
courses. Thailand, Sri Lanka, India and Pakistan benchmark their
In Malaysia, five out of the nine universities surveyed curriculum against the top 100 global Business schools.
offered Business Ethics, at the Masters’ level: four had core Many Business schools have alliances and or tie-ups with
courses on Business Ethics and one had a core course on global universities. The presence of Business Ethics in the
Business Issues and Sustainable Development. At the curriculum of partnering American universities is often the
Bachelors’ level, two universities had courses on Islamic or genesis of the course in business schools in the South and
Moral Studies, and on Management Ethics. South East Asia. In a few cases, in India, Sri Lanka and
In India, a number of Business schools offer a course on Bhutan, it was found that individual faculty had an interest
Business ethics, CSR or Governance. Some of the MBA in regional or religious ethical traditions and hence offered
departments and colleges affiliated to a university offer courses that attempted to integrate the multiple ethical
Business Ethics as a compulsory course, while others offer traditions.
it as an elective. Among the stand alone independent
business schools also, there are wide variations on whether
business ethics is being offered as a core course or elective. Research in the Field of Business Ethics and CSR
Common topics covered in the ethics curriculum are pro-
fessional ethics and functional ethics. Out of the 57 aca- It appears that research is the weakest aspect in the field of
demics that responded to the survey in India, 14 of them Ethics and CSR in this region. This is also validated in the
taught Ethics in the Undergraduate program and 42 of them recent survey of Business ethics research in international
taught Business Ethics, CSR, Corporate Governance or journals (Chan, Fung and Yao 2009). Only four countries
sustainability in an MBA program. 25 of the teachers from the region are listed in the country distribution of
surveyed were supervising Masters’ and Doctoral research. business ethics research. India and Malaysia are the only
The 18 institutional responses mentioned that Business two countries in the region where some research has been
Ethics was taught in their schools. The most common published. Most respondents across countries reported that
topics covered in the Bachelors’ Programs were Profes- not much is being done in the field of research. The
sional Ethics and Ethical Dilemmas in Corporate Gover- mandatory project component of the MBA curriculum in
nance, whereas in the Masters’ program, the most common most schools in the region has witnessed an increase in the
topics covered were Sustainability, Environment manage- number of projects on themes of corporate governance and
ment, CSR and Corporate Governance. CSR. In Nepal, some faculty are engaged on a research
In Pakistan, a course on ‘Business Ethics and Policy’ or study of ‘Business Ethics and Socially Responsible
‘Business Ethics and Social Values’ is offered in the full behaviours of owners of small firms from Buddhist and
time MBA program and in some universities at the Vedic perspectives’ and a consulting project on ‘CSR and
undergraduate level. Out of the 11 schools surveyed in its contribution to building education and training oppor-
Pakistan, only three offered courses: one on Business tunities’. In Bhutan, in recent years, research has focussed
Ethics, one on Law and Corporate Governance, and one on on good governance and related issues like corruption and
CSR and Islamic Ethics: and all of these are compulsory low income housing policy. In Sri Lanka, while the
courses. emphasis on research on business ethics is low, sustain-
In Bangladesh, out of the six Business schools surveyed, ability is gaining momentum as a research area among
only one of them offered a Business Ethics course at the young academics. This has resulted in an increase in the
undergraduate level. number of PhD and Masters Dissertations in the field of
Overall, it appears that across South and South East sustainability.
Asia, the presence of ‘Business Ethics’ as a course is high. Very little research was reported by the respondents in
In Malaysia and Thailand, the prevalence of ‘Business Pakistan, Bangladesh, Vietnam, Laos, Myanmar and
Ethics’ in the undergraduate program of business schools Cambodia. A review of the websites of universities in these
appears to be high. There is an increase in the courses on countries also did not report significant research activity. In
‘CSR’, ‘Corporate Governance’ and ‘Sustainability’. These Thailand, some research on Social enterprises for poverty
courses are mostly offered in the MBA programs rather alleviation, CSR benchmarking and CSR skills and com-
than in the undergraduate programs. It is also evident that petencies in Thai Corporations are being undertaken. In
in most countries, whether it is a core course or an elective Malaysia, research active faculty in universities have been
is a function of the school/university and its philosophy. In contributing to the field significantly. The Malaysian
the interviews, many faculties mentioned that faculty who Institute of Management conducted a survey of 110 com-
had their prior education in the American Education panies that initiated CSR activities. CSR Asia, a not-for-

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Business Ethics in the South and South East Asia 79

profit organization, periodically conducts surveys to check years and are of concern in a significant number of countries
on CSR activities by corporations. In 2010, they conducted in the region. An Internet search provided reports, executive
a review of organizations in Vietnam that were complying summaries and working papers, but these are scattered and
with the Global compact principles. They have also been not amenable to gaining an overarching picture (Mitra 2007,
periodically ranking companies that are listed on the Hang CSR Survey 2002; Kumar et al. 2001).
Seng Index for their CSR conscientiousness. The research themes pursued by researchers across the
In India, a number of faculties have been documenting region is diverse. Much of the research in the field of CSR
case studies on CSR activities in Indian companies. They and Ethics are context specific and since there is a huge
were also engaged in writing book chapters on Environ- variance in the contexts of these countries, it is expected
mental management, Corporate Governance and CSR. A that convergence across practices in the region will require
number of these academics were also contributing articles a strong research focus on themes of common interest.
to national scholarly journals, practitioner journals and Given the fact that most business schools in this region
newspapers. Apart from this, there are studies conducted by have large number of prospective applicants, inadequate
Not-for-Profit organizations like ‘Partners in Change’ on resources, inadequate faculty capabilities and similar in-
the state of CSR in about 500 listed companies in the frastructural difficulties, it is heartening that CSR, Ethics
country. A monograph documenting the evolution of CSR and Sustainability are gradually entering the business
in India (Sood and Arora 2006) lays out a large number of school curriculum. In many institutions in the region, even
studies in the Indian context. In India, a number of studies, today, the emphasis is on teaching rather than research. It is
especially on ethics and CSR in Small and Medium likely that even if there is such research, it is being reported
Enterprises, have been conducted by United Nations in the local newspapers and trade journals. While research,
Industrial Development Organization and Micro, Small and understood as publishing in peer review journals, is in its
Medium Enterprises Foundation. Industry associations like infancy in many countries in the region, faculty publish and
Confederation of Indian Industry and Federation of Indian write for local and regional media. Finally, most business
Chamber of Commerce and Industry have also undertaken schools in the region do not have dedicated faculty hired
studies on CSR in India. There is a large body of knowl- only to teach Business Ethics or Governance. Most of the
edge about Corporate Governance in India published in faculty are hired in the functional areas of management and
national and international journals. In India, we identified offer courses out of interest or pressure from the student
22 authors having written 4 book chapters, 6 reports, and 3 community or accreditation agency. It appears that an
articles published in national magazines and newspapers increased focus on research is needed in the region to
(Padmini and Srinivasan 2011). consolidate learning and experiences in teaching and
A review of the literature and secondary data reveals that training and to more clearly articulate the state of the field
in terms of CSR reports, dissertations, monographs and of Business Ethics in South and South East Asian region.
working papers, Malaysia, Thailand and India contribute
significantly. However, the publications by authors of this
region are not adequately represented in international jour- Major Ethical Issues in the Next 5 years
nals. There is investment in research but the research does
not align with, tie into or base itself on other research ini- In response to the survey question about major ethical
tiatives. It appears that different stakeholders are interested issues that are foreseen over the next 5 years, there was
in different areas and themes that specifically interest them. broad consensus across the region. The major ethical issues
A number of corporations are seeking to understand best could broadly be classified into three categories—macro or
practices, and consultants provide surveys and syndicated societal, consisting of rampant corruption and weak legal
research reports for them. This is not available in the public enforcement systems; meso or organizational consisting of
domain to be used by researchers. The United Nations creating corporate cultures within organizations that breeds
organization and other international agencies that are ethical conduct; and micro or individual focussed on
implementing programs commission studies to meet their building competent faculty and motivated students. Each of
interest areas. The not for profit organizations that do the issues is discussed below.
advocacy, commission studies on specific issues that are of
interest to them in lobbying. The Government, in turn, Societal
produces white papers from a political perspective. All these
reports do not converge or build on each other to provide a One of the significant challenges across the region is
holistic understanding regarding the research in this region. rampant corruption. Transparency International’s Corrup-
This is particularly true of topics like Compliance Code of tion Perception Index 2009 reveals that the South and
Conduct training, which have been in existence for many South East Asian countries covered in the survey except for

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80 V. Srinivasan

Bhutan fare poorly on the Index. Bhutan with a rank of 49 The lack of awareness among teaching faculty on CR
is perceived to be the least corrupt. Malaysia stands second and sustainability issues have consistently emerged as a
with the 56th rank, India and Thailand share the 84th rank, challenge as evinced by Laos, Thailand, Bhutan and Nepal.
Sri Lanka is at the 97th rank, Vietnam is at the 120th rank, The perception was that many of the university faculty who
Bangladesh and Pakistan share the 139th rank, Nepal is specialized in functional areas rarely get opportunities to
ranked at 143 and Cambodia and Laos are at 158 and reflect on ethics, morality or responsibility while teaching
finally Myanmar is ranked 178th. Corruption has featured their courses. Since CSR and Business Ethics are multi-
as a challenge in India in the earlier study too (Chakraborty disciplinary in nature, finding the right faculty who can
1987). Given that corruption for many years has been teach is also a challenge. One such initiative is a collabo-
endemic to this region, the major ethical issue is to ‘create rative project to build a CSR resource website for teachers
a conscience’ within the society. This requires sensitization in India: www.teachcsr.com, which attempts to help faculty
of the various stakeholders and also creating enabling to equip themselves better to teach such courses.
structures that allow for reduction in corruption levels. The A significant issue is the lack of motivation among the
economic cost of corruption is receiving critical attention student community on the topic of ethics and CSR. In many
in several countries. academic institutions, students do not take such courses
Another aspect is the weak legal enforcements system. seriously. The deep belief is that students come to a business
Across all the countries except, Bhutan, Laos, Cambodia and school to learn management and therefore, there is a great
Malaysia, the respondents mentioned that the enforcement of demand for functional courses. There is a dominant capi-
the law of the land is weak. The violation of the codes of talistic ideology among student which is also supported by
conduct and breaches by organizations and individuals, the fact that in many South and South East Asian countries,
whether it is the laws by businesses or traffic rules by citizens, the gap between the have and have not’s is increasing.
is so high that it undermines any discussion on ethics. Several Business school students feel that in a competitive
Therefore, being legal is seen as being ethical. As one world, emphasis on softer aspects like Ethics are likely to
respondent from India mentioned, ‘when conviction rates of take away the competitive advantage they posses. As one
offenders are so low in countries, how do we encourage stu- respondent from Thailand mentioned ‘in difficult times, is
dents to still remain ethical?’ the consumer going to become more conscientious while
buying, this is unlikely to happen in Thailand.’
Organizational In a survey conducted by CSR Asia, an independent
CSR advisory services in the region, weak regulation, lack
One of the biggest challenges to institution building efforts of leadership from governments, bribery and corruption,
in these countries is in creating an ethical corporate culture. corporate governance, and professionalization of CSR were
Respondents from Pakistan, Bangladesh, Sri Lanka, India, mentioned among the top ten issues pertaining to CSR
Thailand and Malaysia mentioned that organizations needed (Future of CSR, 2009 report) in the regions. This supports
to build a culture that promotes ethical conduct. It is inter- the findings of the present study.
esting that organizations introduce performance manage-
ment and work systems that tend to encourage employees to
act in an unethical manner. Such unethical practices are also Conclusions
seen as necessary to compete in the marketplace. The dif-
ficulties in creating an ethical climate within organizations It is evident that the field of Business ethics is fairly new
lies primarily in the inability of the senior leadership teams and evolving in the South and South East Asian region. A
to set the right tone for responsible competition. number of faculty members who teach business ethics and
CSR in the region have had some formal training in these
Individual fields in the Anglo-Saxon countries or are part of interna-
tional networks of academics or training institutions. This
A major concern is that of faculty competence and capa- has resulted in the adoption of books, case studies, course
bility. The non-availability of teaching material from their outlines and pedagogic content and methods replicated
regions or examples of ethical businesses in the region is a from the dominant Anglo Saxon models. With English
major issue for academics and practitioners alike. The being the dominant medium of instruction across the
discomfort in teaching western cases is a significant issue region, institutionalization of pedagogy and content
among scholars. Respondents from Burma, Nepal, Pakistan appears to be even easier. This has led to fewer cases
and India mentioned the increased need for developing getting developed locally across the region. This is also
course content that will reflect their context and the state of reflected in the fewer research papers that appear from
reality in their regions better. these countries in the region.

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Business Ethics in the South and South East Asia 81

As Business Ethics is often conceptualized as embedded Acknowledgments The author would like to acknowledge the
in culture, it may be appropriate to question and highlight support of Prof. Ajantha Dharmasiri from Post Graduate Institute of
Management, Colombo, Prof. Nguyen Hoang Anh from Foreign
the unique responses of the South and South East Asian Trade University, Hanoi, Prof. Sonam Chuki, Royal Institute of
regional discourses to the rest of the world. Transitional Management, Bhutan and Ms. Seema Naqvy and Ms. Asha Shiva-
economies especially rapidly growing ones experience shankar, Research Associates IIMB as the research team on the
unique challenges. Rapid growth is accompanied by large- project.
scale infrastructure development projects. This has led to
the displacement of large numbers of people and requires
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