Thursday, 22 December 2011

Teleology, Deontology and Utilitarianism: A Note-Ananda Das Gupta


1.    Almost in the Hegelian sense, the traditional teleology is a synthesis of the thesis of deontology and the antithesis of Unitarianism.


2.    Deontological approaches to ethics attempt to ascertain the content of duty without considering the consequences of particular ways of acting. Generally speaking, deontologists have thought that moral principles are ascertained through some sort of logical test of consistency, as Kant maintained


3.    Teleological approaches to ethics, on the other hand, morally evaluate actions by looking to their consequences — right actions being right because they tend to have good consequences, wrong actions being wrong because they tend to have bad consequences. Thus, for teleologists, evaluations of consequences as good or bad provide the premises for inferring the norms of right acting.


4.    Teleological approaches to morals are now often identified with some variety of utilitarianism. Utilitarians morally assess individual actions (or sometimes policies, laws or rules of action) by their consequences, the best being those that produce the greatest proportion of good over evil.


5.    The terms ‘teleology’ and deontology’ refer to the ends and the means ethical systems of thinking. Some justify immoral means to a greater ethical end. Some place an emphasis on the means to an end, recognizing that appropriate steps must be taken during the enforcement process so that fair and impartial processes remain intact.


6.    Teleological methods, sometimes called consequentialist methods, are based on estimating what the likely outcomes of a given course of action will be, and then choosing the method that has the most positive consequences and the fewest negative consequences. According to these methods, those actions should be chosen which lead to more positive and fewer negative consequences, and those actions should be rejected which lead to more negative consequences and fewer positive consequences. John Stuart Mill’s Utilitarianism is usually seen as the classical expression of consequentialist ethical thinking, and so is Joseph Fletcher’s Situation Ethics.
Deontological, or duty-based, ethical systems, on the other hand, are those that simply claim, directly and simply, what the fundamental ethical duties are. The Ten Commandments (from Exodus and Deuteronomy in the Hebrew Torah) would be examples of deontological ethical thinking. According to the Ten Commandments, these actions -- honor your father and mother, do not steal, do not commit adultery, keep holy the sabbath, etc -- are stated as simply right things to do or wrong things to do. They are said to be our clear moral duty. The Ten Commandments do not merely suggest, for example, that you look at the consequences of actions and then weigh the possible outcomes to determine if an action is right or wrong. Instead they say that some actions are just plain right and others are just plain wrong.


7.   Situational Ethics was pioneered by Joseph Fletcher (1905-1991). His work, Situation Ethics, founded the modern situational ethics movement. Since then, almost every publication on situational ethics has referred to the model presented in Fletcher's writings. Fletcher was an Episcopal priest, a member of the Euthanasia Educational Counsel, and an advocate for Planned Parenthood. He was a supporter of both euthanasia and abortion. Situational Ethics, according to Fletcher's model, states that decision-making should be based upon the circumstances of a particular situation, and not upon fixed Law.

My fellow academician Prof. Bengt Gustavsson from School of Business, Stockholm University wrore to me on 23rd December 2011;

Dear Prof. Das Gupta,

Thanks for your link to your blog that I have read with great interest. I certainly agree with your classification of the Indian value system from my many visits to your country and the many lectures and discussions I have had with learned Indian pundits/scholars. It provoked some thougths in me that I like to share:

The problem with deontological value systems is that, although moral, they are relative and contextually bounded. We can certainly argue that many of the values you are exemplifying in your text are universal in space but not necessarily eternal in time. For example, virtues (as Aristotle claimed are aquired, must be practiced and admired) in the Edda-days of Scandinavia (abt. 800 AD) admired where braveness, strength and boldness. Today these are not the most admired in favour of for example equality and sustainability. I would love to find a transcendental, universal and eternal virtue list but I have failed so far. Another problem is that deontological systems cannot accomodate conflicting interest very well (although historically, the Indian society has been able to manage that pretty well), for example when freedom virtues are confronted with individual integrity.  

The problem with teleological systems is that although they are said to be immoral ("it's OK to lie if the consequences of my lies are good") is that they do have a moral basis in how to assess the consequences (apart from measuring them in space and time). Utilitarianism held that maximizing pleasure over pain in the action was the ultimate measuring rod, which is of course a moral postulate. It could in the same spirit be replaced by other moral values, such as the balance of service to God or mankind over the Evil and egotistically.

Another issue about these systems is empirical evidence, which is important in the academic world. The strenght of teleological systems is their alleged measurability that can lead to an "objective" ethical decision, given that we accept the moral foundations on the measuring method (e.g. pleasure/pain ratio). Given the difficulties with this system, we can argue that we do have an "evidence-based" system of ethics, which was the goal of Jeremy Bentham and John Stuart Mill. However, even the deontological systems could quite easily be "evidence-based" simply by assesing the degree of achivement of the values involved. For example, if honety is such a value, we can assess that countries with small or big corruption problems have evidence in relation to that value. Of course, there are a number of problems in this approach as well, for example how do you assess the degree of "God-fearing"?

Finally, my experience from introducing teleological and deontological theories to my students is not necessarily that they are practicing them, but it forces them to think about ethical issues and realize that the world we live in is imbued by ethical considerations - I consider that as a good step towards an ethical world.

Best of luck with your blog!

Regards

Bengt

______________________________________________________
Bengt Gustavsson, Ph.D., docent
Stockholm University, School of Business
SE-10691 Stockholm, Sweden
Phone: +46 8 162190


Tuesday, 20 December 2011

Foundation of Indian Moral System : Ananda Das Gupta


Indian moral system contains within it both social ethics and individual ethics. The whole of Indian moral system proceeds on the assumption that as a human being every man has to discharge two types of moral obligations- one related to the other member so the society and the other related to one’s own self. Under the former once such virtues or duties as  ahimsa, dana, daya (compassion) paropakara (help or service to other, asana, prnayama and such other methods of cittasuddi etc. The idea here is that morality is the inculcation and practice of characteristic human virtues as against the animal inclinations. The question of the inculcation or practice of such human virtues or duties arises not only in relation to the other members of the society, but in relation to oneself also by virtue of one being a man, and not a bare animal.

Indian outlook is spiritual and the Indian moral system is oriented towards that spiritual goal, The spiritual goal is generally known as  Moksa and morality in any of its form is a means to that goal. So morality in India is thoroughly spiritualistic.

 Indian moral system has a metaphysical basis. In the West, ethics is autonomous and it does not need to have a metaphysical or religious foundation. It is a social affair and therefore the ought-questions of morality are to be decided simply on social and rational considerations. It does not need to have any transcendental basis. Moreover, metaphysics purports to deal with factual (although of a fundamental nature) questions and purely factual considerations can never become a foundation of deciding ought-questions. For, from mere ‘is’, there is non-passage to ‘ought’. If, however, we make such a passage, we become victim of a fallacy popularly known as ‘naturalistic fallacy’. The two distinguished features of Indian concept of morality are as follows: (1). Authority has the basis for deciding what is moral and what is immoral and (2). Morality refers not only to the social obligations but also to obligations related to one’s own self.


Indian ethics has been more perceptive than speculative or critical. Indian thinkers have always adopted a practical outlook and consequently they have never separated theoretical thinking form their practical consequences.  This is obvious in Indian philosophical thinking conspicuously marked, as it I, by the practical concern of live rating people from the ocean of worldly misery. Even in logical thinking this concern may be seen in the Indian logician’s refusal to bring about sharp distinction between formal and material truth or between deduction and induction.  This concern finds articulation in Indian ethics, which is by and large perceptive, prescriptive or normative. In other words, the primary concern of Indian ethics has been to prescribe norms for a morally elevated life in both its personal and social aspects.
 Moreover, Indian moral system is out and out humanistic. To many western scholars, this characteristic may sound just the opposite of what they have so far thought to be the actual position. Many Western thinkers dealing with the ethical aspect of Indian thought have opined that room for humanistic ethics in Indian thought is unlikely, because it is basically other worldly and life-negating in its approach. Such an impression about Indian thought betrays one’s utter ignorance about its true nature and spirit. The Advaita Vedanta does not deny the reality of this world outright. Rather, on the contrary, it fully firms the reality of the world from the practical standpoint. And from this standpoint all ordinary human relationships are fully real, so that there is a full-fledged scope for a humanistic ethics. Even from the real standpoint, or what may even be called the transcendental standpoint, Samakara does not so much deny the reality of this world as he insists on re-interpreting it. According to him, what is to be realised from the real standpoint is not that the world is complete void, but that is fully spiritual and devoid of multiplicity. The multiplicity and materiality are illusions. What is real is spiritual unity. And what can be a more solid basis for humanistic ethics, rather fro universalistic ethics, than this kind of realisation that the apparent multiplicity of the word is sheer illusion and what is real is a basic spiritual unity? This will be still clearer if we try to see to some extent what humanism actually means and implies.

Modern Indian thinkers such as, Vivekananda, Tagore and Gandhi have sought to make morality a direct means to Moksa.They presented such a conception of Moksa that even social morality by itself becomes directly relevant for the attainment of Moksa. Moksa for them is nothing other than what Tagore specifically calls realising oneself into other and others into oneself, or else, realising the universal self within the individual self. Such a realisation they point out, perhaps rightly, is possible only by cultivating the social virtues of compassion, love, brotherhood etc. Morality becomes a path of direct relevance for the attainment of the highest ideal of life.

The rightness and wrongness of an action is determined with reference to its conduciveness or unconduciveness to pre-accepted non-moral goals. The theory of ethics based on answer of this type is known as teleological theory. The other type does not refer to any ulterior non-moral end or goal. According to it, an action is right or wrong in virtue of its own merit or demerit and not in terms of the goal that it leads or does not lead to. The theory of ethics based on answer of the above kind is knows as the deontological theory.

Deontological theories deny what teleological theories affirm. They deny that the right, the obligatory and the morally good are wholly, whether, directly or indirectly, a function of what is non-morally good… They assert that there are other considerations that may make an action or rule right or obligatory besides the goodness or badness of its consequences- certain features of the act itself other than value it brings into existence, for example, the fact that it keeps a promise, is just, or is commanded by God or State. Teleologists believe that there is one and only one basic or ultimate right-making characteristic, namely the comparative value (non-moral) of what is, probably will be, or is intended to be brought into being. Deontologists either deny that this characteristic is right making at all or they insist that there are other basic or ultimate right making characteristics as well.”

It is clear from the above that for a teleological theory conduciveness to some goal is the necessary criterion for the rightness of an action whereas for deontological theory either it is not at all the case of at least it is not the only and exclusive criterion for judging an action to be right; there are also other considerations besides. Now let us try to categorise the Indian theories of moral obligation and value as teleological and deontological on the basis of the above clarifications regarding the nature of the two theories.

In a way the whole Indian ethical system is deontological something is dharma (duty, obligation or virtue) simple because it is a Vedic law or Dharma Sutras and Sastras prescribe it. This seems to be the temperament of the entire Indian system taken in general. We have seen definition of morality being advanced more often in terms of what is enjoined   by the Vedas and Dharma Sastras. It is hardly said that what leads to Moksa  is morality, bit it is  repeatedly said that what is enjoined by the Vedas, or what is willed by  God or what marks the imitation of the virtues imbibed by God is morality. The Mimamsa clearly says there is no duty other than what is prescribed by the Vedas. So something is duty because it is enjoined by the Vedas as duty.

The Nyaya- Vaisesika


In the Vaiseskika sutras, the very definition of dharma is given in terms of the ulterior ends like abhyudaya (prosperity) and nihsreyasa. It is said that what ever leads to prosperity and highest end is dharma. So here it seems clear that the obligator ness for dharma arises from the twin ends of worldly prosperity and final liberation. Some actions are to be called moral or immoral with reference to whether they lead to the twin ends or not. The Vaisesika morality is definitely teleological then. Similarly, the Nyaya gives primary importance to Istasadhanata in determining the obligator ness of a moral action, or a moral law on which some action is based.

 The Mimamsa

 As opposed to this, the Mimamsakas do not take the obligator ness of moral actions as stemming from the consequence or the end. According the Kumarila, the end or phala may be said to determine the motive of the agent, but not eh obligatoriness. The obligatoriness is the result of the Vidhi of which the action in question is an instance. The imperativenss or the obligatoriness of the action is independent of the end or phala. To  quote Professor Mitra again, “According to Kumarila, the end, the  consequence determines only the motive or the choice, but not he obligatoriness of the imperative… The phala or consequence is only pravarttaka, i.e. a psychological motive but is not vidheya, i.e. the object of moral imperative. It is a psychological implicate  of the moral action, an end as motive being necessary for moral as for all actions, but it is not a moral implicate of the imperative which is obligatory independently of the end of consequence. Hence, the end or phala, according to Kumarila, forms only to motive to move the agent for action. What makes the action moral or immoral is simply its Vedic sanction or lack of it. The moral obligatoriness of the action follows from the Vedic source without any consideration for the consequence.
  
The Ramanuja Vedanta

The Visistadvaita system of Ramanuja also comes to be a deontological system on scrutiny insofar as its characterisation as a moral system is concerned. Like other Indian systems, the system of Ramanuja also takes Moksa to be the ultimate human ed. Furthermore, by virtue of believing in samuccayavada.  Ramanuja gives morality an important place in men’s effort for attaining Moksa. But the question is, does conduciveness to Moksa constitute the necessary condition for an action to be moral?  Does the obligatoriness of a moral action follow from the final end Moksa? The answer is a clear ‘no’. For the obligator- ness of moral actions in the system of Ramanuja follows from the fact that moral qualities in their absolute and ultimate perfection constitute the essential nature of God and man’s duty is simply to imitate or to follow those moral qualities. Thus man’s moral virtues and duties are derivations from God’s moral qualities. They are to be observed and followed simply because they represent God’s qualities and God wants men to follow the moral qualities that He possesses in a perfect and absolute manner. So the sanction and authority of morality comes from no less a being than God. Moral qualities imbibed by God in a perfect manner are for us to imitate. In other words, out duty is to behave in a way God would do in a similar circumstance. For example, God possesses the moral quality of compassion, so we should be compassionate towards other; God possesses the quality of forgiveness, so we should forgive those who do wrong to us, and so on. In Ramanuja’s system God is regarded as a Moral Ideal with reference to which man’s duties are to be derived or deduced. So man’s moral duties follow directly from the moral perfections of God and not from any non-moral end like Moksa. So, Ramanuja’s system also is a deontological system and not a teleological one.

The Samkhya and the Advaita Vedanta


In Samkhya and Advaita Vedanta, as we have already seen, morality is neither necessary not sufficient for Moksa. So the question of the obligatoriness of the moral actions following from this non-moral end perhaps does not arise. Nevertheless, none of the systems takes moral virtues and duties simply valueless. What Samkhya criticises in the name of works are mainly ritualistic acts of the Vedas. But in its turn Samkya realises the importance of the moral virtues following from the sattvika nature of man. These moral virtues pave to some extent one’s path for Moksa also. But what is important to realise is that these moral virtues do not derive their sanction from end whether Moksa or anything else. They derive their sanction rather from the metaphysical nature of man.

Man as psychological being is an evolute of Prakrti. Of the three gunas of Prakrti, Sattva is the most commendable, because it is the repository of good human qualities. So virtues following from Sattva, such as kindness, restraint of sense organs etc., are to be inculcated and followed. Similarly, in Samkara moral virtues do not derive their sanction from Moksa, although they serve as auxiliaries in the attainment of Moksa.

After getting the reflection of the purusha, prakiti becomes conscious and agitated. This agitation disturbs the equilibrium of the three constituents of prakiti (sattwa, raja and tama) and thereby evolution becomes operative. First of all, the sattwa contituent becomes dominant and reason  (buddhi) appears. It has cosmic significance and hence is called the  Great (Mahat). Although reason is cosmic and above the ego, it is still individual and there are as many reasons as individual egos. The ego (ahamkara) evolves out of reason. Depending upon the dominance of one of the three constituents (gunas), we get three kinds of ego.

1.     Sattvika ahamkara
2.     Rajasika ahamkara and
3.     Tamasika ahamkara




The Non-orthodox Systems (Carvaka, Buddhism and Jainism)

Of the three non-orthodox Indian systems, the Carvaka (which is a Hindu system) is definitely a teleological system, because, according to it, the criterion for any action to be moral is the conduciveness of that action to worldly pleasure, a non-moral end. But the two non-Hindu systems- Bauddha and Jaina- are essentially deontological in nature. Like idealistic or spiritualistic Hindu systems they, no doubt, believe that performance of moral acts somehow contributes to the attainment of that performance of moral acts somehow contributes to the attainment of Moksa. In other words, we can say that both of these systems believe that moral actions definitely lead to desirable consequences in respect of both the worldly life and the life beyond. But the obligatoriness of moral actions or principles according to none of these systems flows from any extraneous end or goal. On the other hand, the obligatoriness flows from the venerable authority that is bestowed upon the original propounders of the two systems- Lord Buddha and Lord Mahavira.

Thus despite Moksa being the ultimate human end towards which all philosophical, religious and moral efforts are supposed to be directed in the Indian tradition, the Indian moral system, by and large, proves to be deontological in nature. And it is quite natural for it to be so. We have seen that the Sastras have been regarded as the primary source and sanction of dharma in India. That implies that although the observance of the Sastric  dharmas naturally and undoubtedly leads to good consequences, their moral worth is not to be evaluated  in terms of the consequences. Their moral worth is to be determined and assessed only with reference to whether they are enjoined by the Sastras. In other words, dharma is dharma not because it leads to Moksa, but because it has been enjoined by authority to be dharma. Hence, clearly the overall tone of Indian morality is deontological, implying  thereby that dharma is to be followed for the reason that it is dharma  as enjoyed by authority.

In the Indian context, man’s own nature furnishes a justification for his being moral. Perhaps this is why most Indian systems prove to be deontological in nature. According to them, dharma is to be followed because it is its own justification. Moksa has been brought forth as a motivation in the sense that one who will follow dharma will automatically pave his way for that, but Moksa has never been taken as a justification for being moral. Morality is involved in the nature of man. This can find an apt solution in solving the corporate ethical dilemmas.



Monday, 19 December 2011

Thursday, 15 December 2011

Innovation for the Sustainable Economy in India-Ananda Das Gupta


India’s economic growth has received a strong impetus in post 1991 era.  This increased economic growth is mainly and directly is a result of country’s better monsoons and the free trade movement that started in that year.  Clearly the lethargic economic development was associated with greater protectionism and policy makers seemed to have learned an important lesson from 1950 to 1990 era.  The free trade movement of 1990s has shown positive results in economic terms.  The future economic growth therefore depends heavily on the speed of privatization and globalization. 

At the same time, corporate sustainability challenge represents a tall order for the business world that is accustomed to worry about the next contract and the annual financial performance rather than climate change, ecosystem capacity and poverty issues. The emerging requirements for corporate support to sustainable development probably represent a cultural shock that will take time to sink in the business way of thinking and working. Practically and realistically only the very successful companies could take up the challenge and hopefully will establish the required new sustainability bound business models that can be followed more widely in the future.

LATEST EDITED VOLUME ON SOCIETY AND BUSINESS-Editor: Ananda Das Gupta


Society and Business Two singular axioms     A review of 

‘Ethics, Business and Society – Managing responsibly’ edited by Ananda Das Gupta, Sage Publishers; New Delhi/ England/ USA/ Singapore; 2010

By Divyadarshini Patel in MANAGEMENT COMPASS

Ethics, Business and Society is a collection of articles touching the two gigantic primes – social responsibility and business ethics and how social responsibility forms a part of business ethics. Fourteen great contributions make an insightful reading, crafting a valuable reshuffle of the knowledge you already possess. The book consists of a number of case studies which successfully create awareness about the prominent issues faced by the Indian companies today. The authors have stressed on the subject of corporate social responsibility (CSR) – the subject that is usually side tracked these days even by the big business firms.

Section I

This section talks about The Society, Business and Ethics: The Broader Canvas and the idea is contained in a total of eight articles, looking at the various business ethics perspectives.

The first contribution comes from Arabinda on Business Ethics and the one line that caught my attention here was, “most people are more interested in their own welfare than that of other to the extent of damaging the latter.” This told, we realise in an instant, why business ethics are so necessary for any society. Arabinda discusses about the difficult choices one has to make, how critical is the role of conscience in making these decisions and the never-ending conflicts of paying off ethical debts in the midst of corruption and bureaucracy.

Bibek talks about Governance and Economic Development where he first points out the difference in the way governance is interpreted. A better governance would lead to faster economic development would be an appropriate line to sum up the whole article. Klaus raises the topic of Corporate Philanthropy that can help sustain mass poverty – a major social challenge. Klaus makes it very clear by quoting the example of Novartis Foundation that philanthropy is not an obligation but a sense of duty towards the society you live in.


While D. K. Srivastava puts forth a case study to detail the Perspectives on CSR, L. K. Maheshwari also provides an example to convey her views on Ethical Dimensions in Technical Education. Pingali voices his admiration for XLRI, seeing it renew the face of earth since the past 15 years with its belief in the power of people relationship. Education for a Just, Equitable Society by Dileep beautifully describes that when equality can be measured in terms of individual differences, equity comes into picture when equality becomes a group affair thus drawing our attention towards equitable education.

The first section ends with Subir’s Civil Society and Governance. Beginning with civilization, Subir gives a definition coupled with his views on the topics of society and governance as well. He focuses on politics, religion, media, equity and the new paradigms of the society concluding that “equity in quality of life has to be the over-riding objective of governance in civil society”.

Section II

Put across six sub sections, this section concentrates wholly and solely on Ethics in Business and Corporate Social Responsibility (CSR): Towards Horizon.
Usha commences this section with CSR for Promoting Stakeholder Engagement. In any business stakeholders may or may not play an important part, but the profit and loss in business is equally applicable to them as any other branch of the same business. Thus a stakeholder’s engagement becomes important. “The state, business (private sector) and civil society are posited as the three institutional anchors of modern societies,” the author says. These three are also the most important stakeholders and their involvement is necessary for business prosperity.


Ananda writes about Integrating Environmental Management in Small Industries of India. He reasons out the importance of Indian industrialisation. The small industries do not play a small role in this country and while supporting these, many a times the environment is put at stake. He opines that it thus becomes the duty of these industries to think about saving the milieu.


Ethics in Science and Technology by Parthasarathi is on the changes brought about science and technology and the ignorance savoured towards the consequences. Technology management is a step that must be taken to curb the unforeseen hazards. Hereafter, Prasad gives his inputs on Indian Model of Leadership. Looking at the number of management schools in India and the ever-growing number of applicants, it is quite clear that most of us in this country aspire to become leaders. The writer says that “complexity, diversity, interdependence, speed and ambiguity” define 21st century leadership.N. Balasubramanian shares his views on Governing the Socially Responsible Corporation. Several comments, examples quotations make his article very appealing, grabbing instant attention. He chooses to quote the Gandhian way of shouldering social responsibility to help us understand. The best part of this article was when the author talks about the Gandhian corporate governanace, the excerpts from which are given below:
“Does good governance in the Gandhian frame (similar but much more rigorous than most international stewardship expectations) pay? There certainly is a strong business case for Gandhism (much as Gandhi himself disliked the label) in corporate governance. As noted earlier, leadership companies around the world – and in India – have incorporated many of these tenets (with varying degrees of rigour) in their governance frameworks, often long before…”


The concluding article is a joint contribution from Arindam and Pradip relating to Corporate Governance and the Role of Independent Directors. Directors of various institutions and their qualifications come to light and the article leads to the sensitive Satyam story.The Guiding spirit of our constitution is always at work but still there are times when a crisis in proper corporate governance arises. The contributors have taken care to discuss well known incidents to help the reader relate well to message they are trying to convey. Thus, it is a good compilation to through, especially for the Indian audience.It was very fascinating to go through each of the chapters although I cannot abstain from saying that it did confuse me at times as I was reading many people’s opinions about the same thing. But then, this is what the book is all about – various perspectives on and Society.

Wednesday, 14 December 2011

ETHICS and Resposible Leadership- research work by Ananda Das Gupta


Dr. Ananda Das Gupta has been engaged in teaching and research for more than twenty two years in different universities and institute across India, like North Eastern Hill University (Central university) as Head of the Department of Commerce at Aizawl, as Academic Counsellor to Indira Gandhi National Open University (North Eastern Regional Centre), as Associate Faculty at Vivekananda Centre for Indian Management (VCIM) in Indore, and currently is Professor in Organizational Development, Strategic Human Resources Management, Corporate Social Responsibility and Business Ethics at Indian Institute of Plantation Management, Bangalore - a national level sectoral management school set up at the initiative of Ministry of Commerce, Government of India. He has a Masters Degree in Commerce with specialization in Personnel Management and he did his doctorate from University of Patna as a UGC-research Fellow. A Life Fellow of Indian Academy of Social Sciences and a Member of the Indian Society of Labour Economics, he is a Doctoral Supervisor of many Indian Universities including the prestigious BITS-Pilani. He has just edited the Special Issue on India of International Journal of Social Economics, Emerald Group, England.
Ananda Das Gupta’s books include the following:
National/ International Publications:

  1. Human Values in Management, Ashgate Publishing limited, England, 2004.

  1. Ethics in Business, Rawat Publications, Jaipur / New Delhi, 2005.

  1. Corporate Citizenship: Perspectives in the New Economy, Cambridge Scholars Publishing, Cambridge, England; 2008

  1. Contributed Chapter in The Interdisciplinary Year Book of Business Ethics, Peter Lang Publishes, Oxford, England; 2006,.

5. Ethics, Business and Society (Ed.) Sage New Delhi/ USA/ London/Singapore May 
     2010.
6. Encyclopedia on CSR (Four Volumes) Member of the International Editorial Board, Springer Group, Germany (forthcoming)

7. Prepared Study Material: Effective Communication and Conflict Management in MBA Course for IGNOU, New Delhi 2010.

8. Organizational Behaviour:   Design,Structure and Culture, Bioztantra-Wiley, New Delhi (2011).

Current Academic and Research Assignments:

Adjunct Professor: Indian Institute of Management Kozhikode
Adjunct Professor: S. P Jain Institute of Management and Research Mumbai
Guest Faculty: DOMS, Indian Institute of Technology Madras
Visiting Scientist: Indian Statistical Institute, Kolkata
Guest Editor: International Journal of Social Economics, Emerald Group,England
Adjunct Professor: Indian Institute of Management, Rohtak
Member of the International Editorial Board: Encyclopedia of Corporate Social Responsibility, Springer, Germany.




Monday, 12 December 2011

Inclusive Development and Responsible Business in India- Ananda Das Gupta


The Indian Scenario
The Genesis
The Indian economy has been under two distinct and diverse forces of ‘swadeshi’ i.e. buy Indian Goods’ and the need to integrate with the larger world economy. Both forces have significant economic and political implications in the region. Liberalization of the Indian economy in the late 1980s and early 1990s also saw the reestablishment of transnational corporations on the Indian horizon. The Indian political and economic climate has been far from stable in the last decade, and it has been claimed that transnational corporations, to influence this unstable political and economic climate in their favour, have used the concept of corporate social responsibility as bait. It is worth mentioning that though the concept of corporate social responsibility is gaining popularity with the Indian business too, its practice has been under varied external and internal influences. Therefore the benefit or loss of the increase in numbers and reach of transnational corporations is open to debate in the Indian context.
The Trends

The family run business of the 1920s and 1930s: the Tatas, the Shriram Group, and the Birla Group, were actively involved in running and establishing schools, colleges, hospitals, temples, cultural centers and training centers etc. Most of these infra-structural establishments are all well known today by the names of business that were instrumental in their establishment, for example the Shriram College of Commerce, the Birla Mandir (temple)one of which exists in almost each major city of the country, and the Tata Institute of Fundamental Research etc. These infra-structural initiatives were instrumental in popularizing the identity of these companies. The initiatives were also essential as per Independence and early post-Independence India lacked advanced centers of research and education. The infra-structural initiatives and the economics reach of these businesses have made the Tatas, Birlas, and the Shrirams household names in the Indian context.

  Change in Threshold

In the age of globalization Corporations and business enterprises are no longer confined to the traditional boundaries of the nation-state. In the last twenty years the role of multinational corporations in defining the markets and consumers has been tremendous. The rules of corporate governance have changed. And there has been a range of reactions to this change. On the one hand globalization and liberalization have provided a great opportunity for corporations to be globally competitive by expanding the production base and market share. On the other hand, the same situation discounted against multinational corporations in different parts of the world. Labourers, marginalised consumers, environmental activists and social activities have protested against the unprecedented predominance of multinational corporations. The ongoing revolution in communication technology and the effectiveness of knowledge- based economics has created a new model of business and corporate governance. A growing awareness about the need for ecological sustainability has paved the way for a new generation of business leaders concerned about the responses of the community and sustainability of the environment.

Issues on Board

Globalization along with changed norms of production, labour and environment with conditions of best practice has influenced behaviour of businesses across the world. The success of the acceptance of these norms has been outside the letter of law and the adoption has often influenced state to adopt better/improved or at least changed role for itself. The norms of resettlement and rehabilitation as dictated by the Indian state are by law adopted by joint venture companies involved in extractive industries yet many other activities are also undertaken as corporate social responsibility, which are neither detailed nor dictated by law. Growth of civil society organizations has also led to increasing democratization in the marginalized and impoverished communities creating local responses to the grant meta narratives. Yet nation state needs to evolve a new role for itself in this fast changing world. A stable nation providing good governance is thus basic requirement for developing countries in their attempt to safe guard rights and interests of their poor and marginalized. Yet, the business are wary of investing time and resources in proactively dealing with pressure groups, media, and local people for social or community development as they often lack familiarity and the skills to do so (Business World, 1998a). Indian business has been actively involved in corporate philanthropy since the early 1900s. The charitable outlook of Indian businesses is progressively undergoing change under some external and internal influences. The increase in the momentum of corporate social responsibility has created new routes or avenues via which issues of corporate social responsibility are put to practice.


India in context: a dancing dragon?

An interesting development that marked the external environment in the last decade has been the emergence of the BRIC (Brazil, Russia, India and China) countries in general and India, in particular, as influential economic power houses in the global economy (Jain & Subhash 2006). Their remarkable GDP growth has transformed not only the nature and character of economic landscape of these countries but had wide ranging influence on their social and political life as well (Khanna et al. 2006). The projections suggest that amongst the BRIC economies India has the potential to grow the fastest over the next 30-50 years Notably, India’s growth rate is forecast to be above 5% throughout this period.  While India grew steadily some sectors of the economy have registered exponential growth.  For instance, the CAGR (Combined Annual Growth Rate) of the IT sector has been 30% year on year It has grown from a mere USD 4 billion in revenues in 1998 to a remarkable USD 64 billion in 2008 and it employs over 2 million people in 2009.  Its contribution to India’s GDP has gone up approximately five times from 1 percent to 5 percent in the last decade (NASSCOM, 2008). 
It is pertinent in this regard to have a brief analysis of India’s economic growth in the recent years which has merited global attention. A key indicator of the remarkable growth of world’s second largest populated state is that it is the fourth largest economy in PPP terms (2000). Since 2004, the growth in the Indian economy is quite close to the projected estimates for the BRIC countries. 
Two key forces that shaped the metamorphic changes in the Indian business environment have been the liberalization and privatization of the national economy.  Liberalisation and privatisation led to many changes in the external environment of organisations some which include the liberalisation and de-regulation of the various sectors of the economy such as insurance and telecommunication, the phenomenal growth of information communication technology, greater integration into the WTO and membership of global and regional trade organizations, and the liberal trade policies.  Furthermore, the forces of globalisation and privatization led to a heightened focus on competition, customers, clients and trade conditions.  In brief, these changes forced radical changes in the environment of organisations.    The transformation of the role of the sate from that of a controller and regulator to that of a facilitator of the economic activity is the embodiment of these changes.  Such changes in the external environment necessitate wide range of changes in workplace values and attitudes

New waves in India

·         Rapidly growing economy
·         Role of regulations vis-à-vis Pace of Rapid Growth
·         Role of Government, Private Sector and Civil Society
·         Inclusive Development and
·         Responsible Business Initiatives

 Current Issues

The triple bottom line (people, planet, profit) approach to CSR emphasizes a company’s commitment to operating in an economically, socially and environmentally sustainable manner. The emerging concept of CSR advocates moving away from a ‘shareholder alone’ focus to a ‘multi-stakeholder’ focus. This would include investors, employees, business partners, customers, regulators, supply chain, local communities, the environment and society at large. The key components of research topics would therefore include the following:

  • Corporate Governance: Disclosures, role of Board and CEO, Executive Compensation, Conflict of Interests, Accountability and Transparency, Limits to CSR and Economic Growth, Corporate Reputation, Corporate Citizenship, Code of Conduct.

  • Workplace and labour relations: Responsibility in the context of employees, Customers, Supply chain and Community, Ethical Behaviour and Whistle blowing.

  • Environment: Sustainability and growth.

  • Community: Multi-sector partnership and Collaboration, Socially Responsible Initiatives, Leadership and Community Engagement Models.\  
  • EPILOGUE

  • Globalization along with changed norms of production, labor and environment with conditions of best practice has influenced behavior of businesses across the world. The success of the acceptance of these norms has been outside the letter of law and the adoption has often influenced state to adopt better/improved or at least changed role for itself. The norms of resettlement and rehabilitation as dictated by the Indian state are by law adopted by joint venture companies involved in extractive industries yet many other activities are also undertaken as corporate social responsibility, which are neither detailed nor dictated by law. Growth of civil society organizations has also led to increasing democratization in the marginalized and impoverished communities creating local responses to the grant meta narratives. Yet nation state needs to evolve a new role for itself in this fast changing world. A stable nation providing good governance is thus basic requirement for developing countries in their attempt to safe guard rights and interests of their poor and marginalized.  Indian business has been actively involved in corporate philanthropy since the early 1900s. The charitable outlook of Indian businesses is progressively undergoing change under some external and internal influences. The increase in the momentum of corporate social responsibility has created new routes or avenues via which issues of corporate social responsibility are put to practice. This has led to a marked and a welcome participation of corporate house in the local development agenda, showing that they do feel responsibility for the environment and people of the area where they set up business. Now it is no longer a question of what and how they help, because they have already proven, more so in the last decade, that they do want to help, and that they do have the local welfare at heart. This attitudinal shift is not a response to any industrial, commercial or government diktat, of course, certainly increases goodwill. The fact that this makes it a two-way interaction is very welcome too, as that was the primary goal of the exercise anyway. The time for unmotivated philanthropy seems to be coming to an end in the Indian context, and the usage of the term ‘corporate social responsibility’ is gaining currency since the 1990s. Therefore well-established business also may have a well-established strategy of ‘corporate social responsibility’ to a) effectively deal with the instability of the Indian politico-economic climate, b) proactively deal with all the other stakeholders and c) meet the demands of international customer especially as regards to labour and environment. The success of the acceptance of these norms has been outside the letter of law and the adoption has often influenced state to adopt better/improved or at least changed role for itself. The norms of resettlement and rehabilitation as dictated by the Indian state are by law adopted by joint venture companies involved in extractive industries yet many other activities are also undertaken as corporate social responsibility, which are neither detailed nor dictated by law. Growth of civil society organizations has also led to increasing democratization in the marginalized and impoverished communities creating local responses to the grant meta narratives. Yet nation state needs to evolve a new role for itself in this fast changing world. A stable nation providing good governance is thus basic requirement for developing countries in their attempt to safe guard rights and interests of their poor and marginalized.