[Vnbiz] Law and ethics

[Tran Dinh Hoanh]

Dear Brother Shandon & CACC,

This is a general response to brother Shandon's post, but the primary
purpose is to clarify the difference between law and ethics in management
for some folks who may have been confused.

Let's take a company.

1.  The company's law say, "Come to work on time. Do not come late."

No law can say, "Work hard like you want to conquer the world."  This is
work ethics.  The leadership of the company has to be smart enough to
motivate people to work like they want to conquer the world.

2.  The company's law say: "Do not sexually harass other employees, do not
defame them, do not beat them physically."

No law can say: "Treat your fellow employees as your best friends, your
family members, bond well with them, love your fellow workers."  This is the
ethical inspiration that a leader must create himself.

3.   The company's law say, "Be fair."  No law can say, "Be generous."

These three examples show that the law is only to demand the minimum level
of conduct of people in the company.  For the company to win over all
competitors, the leader cannot simply just reply on the law and keep the
people's conduct low at the floor level. He must use ethical inspiration to
bring people to a higher level.  Both law and ethics have their role in
management--the law is the floor to insure stability.  Ethics is the
unlimited ceiling (shooting for the star!) to bring every one to a higher
level of operation.

These 3 examples are real examples in companies I manage and bring them to
success.   For examples, every time I fire an employees for wrongful
conduct, I usually tell the government's unemployment commission that "I
don't need her anymore, so I let her go."   That would allow her to collect
unemployment compensation while looking for another job (while hurting me by
increasing the amount I have to pay for the company's unemployment
insurance) .  If I tell the commission the real reason and if it agrees with
me, then the fired worker will not able to collect any compensation.  Other
employees of mine love this approach.  They agree that the other employee
should be fired for the team's benefit and strength, but they can see my
effort to help even the one I fired.  They are therefore highly motivated.
That is management by ethical inspiration:  "Love your fellow human being"
or "Be generous."

The law is for the bottom line of conduct, the minimum level of conduct to
survive.  Ethical inspiration may bring people to greatness.  That is the
difference.   Companies and nations that rely only on the law will stay
mediocre, companies and nations that rely on both law and ethics will win
greatness.

Have a great day!

Hoanh


On 8/18/07, Shandon Phan <shandonphan at gmail.com> wrote:
>
> [ Vietnam Business Forum ]
>
>
>
> The rule of law and the rights and responsibilities of citizens are
> inter-related.  The rule of law acts as the foundation for the development
> of active and responsible citizenry.  The rule of law is not simply the law
> as anh Hoanh continues to argue to make his point or preference for
> "character development."  The rule of law is a princile of governance under
> which sound laws and policies are part but not the complete solution.  The
> issue of good/bad management that anh Hoanh kept referring to is called
> "good governance" capability, which could be broken down to 1) establishment
> of sound laws & policies, 2) effective enforcement of the law; and 2)
> capable law enforcer.
>
> Because the law in VN is messy, unsophisticated and many times illogical
> with many holes in it, many serious violations went unpunished because the
> law was not as thoroughly developed to address those issues.  Even when the
> law could be applied, it was not appropriately and fairly enforced because
> there's no accountability, transparency, and a system of checks and balances
> put in place.  The police officer is an agent of the State, he's supposed to
> follow, uphold and enforce the law.  Yet, he is the one who violates the
> law.  And his superior turns blind, either out of willingness, pressure or
> ignorance.
>
> The rule of law, not simply the law as anh Hoanh has misunderstood,
> will provide the structure to manage society, to encourage good, responsible
> behavior of citizens, and hold those wrongdoers responsible,
> whether such individuals acted as agents of the State or on their own
> behalf.  Governance is a matter of both leadership and management.  If the
> rule of law is well developed, the police officer will be prosecuted and
> fired from his position.  If his superior does not act, he will be held
> responsible as well.  The doctrine of commander responsibility will be
> applied here.
>
> VN does not lack men with vision, intellect, leadership, and good
> character.  What it lacks is a system that would provide these men and women
> the framework for them to carry out their ideas and contribute to their
> country.  The rule of law is necessary and crucial in that sense.  Not
> simply the law as in its limited technical sense in anh Hoanh's argument.
> VN, just like its bigger brother China, has so far developed many sets of
> laws under its legal reform program, and borrowed numerous legal norms from
> Western societies.  But it still has a long way to go in order to establish
> the rule of law.  When I look at Chinese legal system, I see the Chinese is
> way ahead of the Vietnamese in terms of legal reform.  But even the
> Chinese leaders acknowledge that the development of the rule of
> law, perceived as a threat against the CCP's political dictatorship,
> is necessary for the CCP's survival and China's continuing development and
> prosperity.  They also realize that individual's development will
> automactically follow once they have the rule of law in place.
>
> Sincerely,
>
> Shandon
>
>
>
> --
> Tran Dinh Hoanh, Esq., LLB, JD
> Washington DC
>
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