There are several virtues which are essential  for the cordial existence and survival of all human beings. They form the foundation on which any activity can be planned and executed for the benefit of all. Integrity and trust are of paramount importance in this respect. One leads to another as Integrity is being honest under all circumstances upholding the strict moral and ethical values without compromising on principles through discrimination or favouritism. It increases credibility, reliability, acceptance and will be the path leading to establishment of Trust.

Chapter 2,verse 23 of Bhagavad Gita is giving a beautiful description of the soul which cannot be destroyed even by the sharpest weapons, cannot become wet or dried, fire cannot burn it and the same is unaffected by any external elements. Integrity has similarities with these qualities as it amounts to uncompromising adherence to ethics and principles upholding the highest moral values. 

Banking activity always has its foundation on the basic principles of Integrity and Trust, as the activity is not exclusively depending upon law but also on Practice. The concept of integrity, honesty and probity have several things in common, but Integrity is of  ultimate importance as the same is a by-product of all virtues like honesty etc and the final pinnacle on which  the reputation is built upon. While dealing with assets and activities of others, Bankers are having the additional responsibilities to maintain impeccable integrity as it almost immediately attracts quality business. We are having stellar stalwarts like former CMD of State Bank of India, Shri R K Talwar who refused to succumb to the external pressures in conducting the business of the bank and preferred to maintain the dignity and reputation rather than compromising on unethical and unreasonable demands.

The culture of Integrity is to be cultivated with the long term goals in mind by adopting appropriate strategies without compromising the ethical principles. Any institution will have a mission and a vision which will be on the firm foundations of value based objectives. These laid down principles will have its journey from Top to bottom as the path is laid with these golden objectives in mind. The different layers of hierarchy should be familiar with the principles for effective conduct of business with Integrity which will lead to establishment of Trust. An appropriate training system giving adequate credence to values will be essential to impart the initial inputs in this regard. 

In our corporate world we have the examples of institutions like TATAS with a cherished history of more than a century and the equally celebrated corporate entity of Infosys. The news of Air India being handed over to TATAS was received by everyone as if  it is the victory of the most deserved. The reason for the celebration mood is the reputation built up by TATAS through their different activities, both in the Corporate World and outside activities connected with society. Immediately after the terror attack in Mumbai, TATAS decided to support even those roadside vendors outside their Taj Hotel who were affected, suffered damages and loss of life.  The training system introduced by Infosys at their Mysore Campus gives a lot of importance to truth, integrity and honesty as the foundation of ethical, quality business. We are also lucky to have the classical example of our former President, Shri Abdul Kalamji  who exhibited the true value of honesty and integrity in discharging the duties of the highest office of our country. The humility and prudence displayed by our Abdul Kalamji is legendary. (I  had the fortune of interacting with him directly during our Centenary Celebrations at Vigyan Bhawan,where while  interacting with 2-3 poor borrowers whom we took to New Delhi, he was more concerned about the additional income being generated with their activities). The foundations of reputation cultivated through consistent and concerted activities catapulted the Metroman of India, Sri E Sridharan to a cult figure enabling him to execute difficult and different projects like Delhi Metro, Konkan railways and Kochi Metro within the pre planned time frame, that too without exceeding the budget.

We have several examples of banking organisations tumbling upon the loss of reputation which resulted with erosion in Trust when the values of Integrity got compromised for personal gains. The best way to arrest this tendency is to ensure establishment of a comprehensive training system where the ethical principles and values are prominently incorporated.

The advantages of an institution with integrity are many. The reputation  itself will ensure more business as everyone will be happy and comfortable to deal with an organisation with integrity. The welfare and benefit for every stakeholder is ensured when business is done on principles. Another most important factor is the peace of mind with which business can be carried out. When uncompromising attitude is maintained, the quality of business improves which will lead  every stakeholder happy and satisfied. The compliance level improves      and the foundation of the institution becomes more strong to attract and maintain more quality business. We have the history of institutions like Satyam Computers, Enron etc where principles and ethics were compromised for short term gains which finally resulted in complete collapse of the entities and loss of credibility and reputation of the promotors. A corporate icon like Rajat Gupta had to lose face on certain activities done to accommodate his accomplice resulting in loss of reputation and undergoing jail term.

When short term gains clash with long term objectives and vision, tendency for compromising on ethics and values may crop up. The attitude of running after incentives and comparison with other entities at times will lead to temptations and unethical activities. Many a time, the interpersonal relations also take a back seat and individual greed shadows all other activities. This will lead to low productivity and destroy the pleasant atmosphere. Rather than building strong institutions on the foundations of values, the tendency to go after quick gains through short cut methods will ultimately result in a shaky institution which cannot survive in the long run. The examples of financial institutions like IL&FS, Yes bank etc are in front of us. Kingfisher airlines, Jet Airways, Bhushan Steel, DHFL, PMC Bank and the activities of Nirav Modi ,Mehul Choksi have re established the necessity of proper corporate governance on the strong foundations of ethics. 

Trust deficit is suicidal for bankers as the reputation built upon through concerted efforts for several years may be vanished with one single wrong activity. Shortcut methods to gain temporary peace and reputation will shake the foundation and will be difficult to regain the lost reputation. The credibility and reliability are to be nourished and cherished always.    Activities amounting to discrimination, abuse of leadership, favouritism and wrong reporting of compliance and accounts  will lead to erosion of faith and trust.

The Credibility and Reliability of an institution cannot be built overnight and the same is achieved  with concerted, focussed efforts on the firm foundation of Integrity and Trust. It is the culmination of a proper team effort where the vision and mission is carried out through responsibility and humility. Transparency in every action is quite essential as the same ensures to never landing into pitfalls like discrimination, abuse of leadership, Nepotism, favouritismetc. The adherence to stipulated compliance level is essential to pre-empt incorrect or wrong accounting or reporting. 

In a normal business environment the productivity is always better when the foundation of Integrity and Trust is intact. It leads to a pleasant working environment and excellent interpersonal relations. The individual growth is integrated with the corporate objectives resulting in a harmonious environment where everyone's a winner.

Banking is an activity where every stakeholder is Dependent, Independent and Interdependent. One has to play the role according to the situation by adhering to the laid down principles where flexibility is equally relevant as being firm. The golden rule to keep in mind is NEVER SAY YES WHEN YOU WANT TO SAY NO. One should have the courage and strong conviction to communicate the viewpoint politely.  

With uncompromising adherence to Integrity and Trust  peace of mind, quality business and better reputation is assured.  The golden words expressed in the Bible on this topic are relevant. If you lose your soul, what is the benefit of amassing all the wealth in the world!