Showing posts with label Rajat Gupta. Show all posts
Showing posts with label Rajat Gupta. Show all posts

Monday, June 18, 2012

The Fallen Star


A perfect storybook example of American dream, Rajat Gupta crafted his illustrious journey in global corporate world by sheer endeavor and meritocracy, and he was the first Indian to be the CEO of McKinsey and Company at a time when heading a global MNC by any Indian was literally unheard of. With his meteoric success stories Rajat Gupta became an epitome of corporate hero who despite being orphaned at 18 earned degrees from elite institutes such as IIT and Harvard and joined McKinsey in early 70's. Since then he never looked back. Mr Gupta also became the board members of global corporate giants like McKinsey, Goldman Sachs, Proctor and Gamble, and AMR. But one fine day his understanding of ethics on corporate governance got blurred and he divulged insider information of Goldman Sachs board meeting to his friend and business partner Raj Rajaratnam, founder of Galleon Group. And the rest is an open book of trials and tribulations that he yearned from pumping out his affinity for greed.

Sometimes, I wonder why these demi-gods of society fall prey to mundane traps? Few more million bucks, more greed, and what not? Is that a gold standard of life that drives us crazy to do the unthinkable? Mr Gupta may be a brilliant Wall Street executive who has garnered both puffs and prestige for his meritocracy, but as a lesser mortal, he is no different than an ordinary criminal who springs into unlawful action by the trigger of a small bait. Why I am becoming a little harsher here is that today I just listened into the wiretap of FBI and the evidence against him for passing inside information is unmistakeably overwhelming. As a trusted board member of Goldman and Sachs he has breached the fundamental code of ethics. What it evokes now as how he could able to rise and rise for over three decades without any hurdle and the secret here is his dirty networking skills that propelled his tempo of corporate journey. For all his magical networking skills and relations with high and mighty in the corporate world and beyond he reached the acme, but the nadir was not far behind.

When FBI tapped the suspicious conversations between him and Rajaratnam, his facade broke into pieces like a piece of glass. Although Gupta was not directly involved in the trading in which Rajaratnam heaped one million profit; nevertheless, the modus operandi was more than suspicious. As a responsible corporate citizen he established a bad precedent, which is unforgivable. But here is a contrast, when Gupta was convicted for his crime on last Friday (June 15, 2012), another Indian-American Preet Bharara, the US Attorney in Manhattan, was the man who probed into this insider trading crime and stood unperturbed by the stellar image of Gupta. And the pointed difference is a matter of honesty and integrity, not the mundane achievements.  

Wednesday, March 23, 2011

The evils of popular perceptions

Popular perceptions are a major evil in a progressive society. The recent unfolding of corruptions in all walks of life has betrayed the trusts of people hinged on the actions of most powerful and prominent personalities in public domain. Let's examine the merits of confronting the popular perceptions. Two events, although the similarity of problems is bit different in each case, that have rocked India recently embroil the public faith, which only accentuated by media through popular belief, rather not evolved by the rationality of substantial arguments. The first case is being the rise and rise of Rajat Gupta in corporate world and eventual fall by an allegedly normal human attribute that we often call greed. The second one is the cloud-clasping integrity of Manmohan Singh haunted by the megalomaniac passion for power even through unscrupulous means like horse tradings in the parliament. Although both cases are different to judge, the common parameters that have generated humongous confusion in public mind are the popular perceptions.

Now, analyze the case of Rajat Gupta, a prominent figure in the corporate world. His alleged involvement in the insider tradings, as levied by USSEC, and passing critical information to Rajaratnam has now captured the attentions of middle class Indians across the globe. In India, Rajat Gupta is like a god figure for any aspirant of management education. His success trajectory is so gargantuan that any corporate leader can hardly touch or emulate his management contributions in a lifetime. His relentless efforts in making India proud in global business and political forums are unthinkable. His involvement in establishing global institutions such as ISB, WEF, PHFI, and many others, spells his leadership charisma. During pre-liberalization era, when racial apartheid in American corporate domain was a subject of extensive scrutiny, he could rise from a consultant to the top boss at McKinsey, breaking the popular contemporary trend. But after such an illustrious journey, if he is convicted of a financial crime like passing crucial information for insider trading, it's not only his credibility at great risk but also his popularity as prominent corporate leader has triggered a reverse gear. I wish he should prove him innocent in the court of law, but at the same time it's a cautionary remark for those emotional Indians who still believe that their global corporate idol can't be corrupt or erroneous is not at all rational.

Secondly, the WikiLeaks overwhelming exposure on Indian political sins during a political mandate for passing the nuclear bill reveals the darkest side of democracy. The most concerning factor is that a clean personality like Dr. Manmohan Singh is also entangled into the corruption whirlpool. As Prime Minister, his contributions to the Indian economic development is paramount. His professional journey from a professor in Economics to the Governor of RBI to the Finance Minister, and finally the Prime Minister of India in two consecutive terms, is legendary. No middle class person can dare to traverse on a mission with so much conviction, precision, and perfection that Dr. Singh has done in his life. Especially, his personal integrity as a public servant has been exemplary and indisputable. However, irrespective of all his glories, the recent unfolding of corruptions in his cabinet and essentially the vote-for-cash episode for passing the nuclear bill in his previous term trigger some uncomfortable questions against his integrity and team practices. Moreover, to dissuade the Opposition in the Parliament from the charges, he has exposed his irrational side by claiming that a popular mandate in the Parliament is an enough evidence of his party's innocence. Mr. Prime Minister, perhaps, you have forgotten a fundamental premise on integrity, which is always a subject to proof, and I hope this is the high time for you to prove your innocence. No popular perception has any logical place in a rational progressive society.