Around 18th Century BC lived a King named Hammurabi who instituted a social law now known as the
Hammurabi's code. It is the one of the first evidence of law ever written down. One of the principle
features of the code was about the builder - If a builder built a house for a man & the house collapses
to cause the death of the owner, then the builder has to be put to death.
Such a punishment seems incredibly harsh especially when there can be many reasons for the collapse.
But with such a heavy downside in place, the builder has absolutely no incentive to cut corners in
constructing the house. He has to use the best materials & the best building techniques to build the
best possible house which will last for a long time. The builder literally has his own skin in the
success & longevity of the building.
This type of a system ensures a very strict moral obligation & not just a professional responsibility.
How could this same moral obligation be translated to the fund management business?
