Biz ethics vital for inclusive development
Proper implementation of business ethics in organizations can ensure
maximization of lawful profits and effectively protect the interests of
This eventually can ensure a viable and competitive business
environment, Chairman, Securities Exchange Commission, Tilak Karunaratne
said. He said although most of the business chambers, professional
bodies and similar organizations in Sri Lanka have codes of ethics or
codes of conduct, they expect the members to follow, seldom have they
taken any action against members for not conforming to these ethics.
Ethics are important for the well-being of an organization.
It is very important that organizations practice business ethics to
ensure good governance in their organizations, he told a group of Junior
Chamber members. “When we talk of business ethics we cannot ignore the
importance of ethics in capital markets which is a source that fuels
business activities. As the person heading the organization entrusted
with the duty of regulating the capital market of Sri Lanka, I will be
failing in my duty if I do not address this important aspect,”
“In the stock market we expect market stakeholders to inculcate
professionalism and ethics in all their dealings to foster trust.
Trust is the livewire of confidence and as all of you are aware,
market confidence provides the impetus for the development of a robust
and efficient stock market.
“We experienced how the market had to pay dearly during 2010/2011
period due to the actions of few people who resorted to unethical and
downright scandalous methods of manipulating the market. “It is with
great concern and distress I reflect on how attempts were made by again
a few investors, stockbrokers, investment advisors and even influential
politicians to transform the market to a casino during the previous
regime. Market manipulation was the talk of the day.
“In the process, a large number of innocent and ignorant small-time
investors who followed the herd instinct got ruined and we are still in
the process of giving some redress to these investors. These unethical
behaviour patterns were well grounded on unlimited greed and power
“The rainbow revolution paved the way towards an ethical dimension
and perspective. Since January 2015, our Commission along with the
Secretariat has been committed towards creating a conducive environment
to foster ethical behaviour in the market through policy, regulation and
“A great deal of emphasis is placed on uplifting professionalism in
the industry through continuous training, investor awareness etc. These
initiatives are geared at ensuring a regulatory and governance framework
that reinforces a culture of accountability and integrity.
“The importance of political commitment and suitable policy in
fostering ethical investing cannot be undermined. However, it is equally
important to note that ethics cannot simply be subjected to regulation
as it usually emanates from ‘within’ a person. The ethics learned at a
young age are usually maintained through adulthood and put into practice
in daily lives.”