A test in leadership
7 October 2002

President Bhichai Rattakul's October message to Rotarians began with a reference to a Chicago Tribune headline which read "Scandals shake faith in big business" and ended with a reminder that as Rotarians will be judged on their ability to uphold the public trust, they must fulfill their time-honoured commitment to vocational service and the highest standards of business ethics.

Indeed, the past year has seen the corporate world littered with scandals and business failures. As the public lament the absence of true and effective leadership in business, they have turned to governments and regulators for remedies, which in turn has sent the latter scouting for talents - intelligent, public spirited, well informed and trustworthy individuals - strangely but unsurprisingly, from the private sector for solutions. People are asking, "Where are those highly regarded and influential spokesmen and businessmen that everyone would listen to?" and more fundamentally, "Can we trust the corporate world or corporate America any more?"

While it is relatively easy to attribute the causes of these failures, in an over simplified fashion, to poor corporate governance or a lack of accountability and conflict of interests, it is many times more difficult to find solutions - effective solutions - that would address the problems at source and restore confidence in business. There is also the need to ensure that the market would not be stifled and over-regulated as a result of any reforms that would almost certainly be introduced.

Rotarians being business and professional people, it is not inconceivable that many Rotarians would be called upon to make suggestions and develop solutions in the process. When it happens, we hope those involved would be mindful of President Bhichai's call to Rotarians to fulfill their commitment to vocational service and the highest standards of business ethics.

Back to our Rotary District and more specifically, how the District has been administered, there have been complaints that the Rotary Information Centre (RIC) could be better managed and provide more effective support to clubs in the District in general and the District leadership in particular. Until July 2000, expenses related to the RIC accounted for half or more of the total District budget. After the per capita dues were increased in July 2000 to the present level, the RIC budget still takes up 25% of the District Fund.

In 2001, the District hired a management consultant to look into the matter. The consultant produced a report with recommendations on how the management of RIC could be streamlined and modernized and to maximize value for money. Unfortunately, the report was allowed to gather dust with changes in leadership.

We hasten to acknowledge that successive leadership would have different priorities. Our reference to the RIC Consultancy Report is no more than an illustration of the difficulties in management in general and corporate governance in particular. Nevertheless, if the leading lights of the business and professional sectors in the City could not be seen to be putting their own house in order, it would do little to enhance confidence in the masses that they are willing and able to deal with the wider issues and leadership problems in business.

Changes and reforms have never been easy, or for that matter, popular, particularly when conflict of interests could be involved. This could be a test in leadership.