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Management Guru: Journal of Management Research Quarterly Magazine, August-October 2012, Volume 1 Issue 1 RNI TC No.

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MAHENG13205

Date of Publication

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1st August 2012

Owner, Publisher & Printer

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Sharayu Chandrashekhar Ashtikar

Editor

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Sharayu Chandrashekhar Ashtikar

Address

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B/7- 50, Vijay Park, Kasar Vadavali, Ghodbunder Road, Thane (W) 400615. Mobile: 9967357415, Tel. (022) 25970898 Email: ashtikarcd@gmail.com

Place of Printing

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Perfect Prints, 22 Jyoti Industrial Estate, Nooribaba Darga Road, Near Makhmali Talao, Thane (W) - 400 601 Tel. (022) 25341291

Auditors

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Sanjay Tupe CA, Sanjay Snehal Associates, Chartered Accountants

Advisory Committee and Peer Evaluation Committee

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Dr. P.C. Shejwalkar Professor Emeritus of Commerce and Management Sciences University of Pune

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Dr. D.B. Deore Nominee-President of India for Ranchi-Jharkhand Central Universities

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Dr. C.D. Ashtikar Ex. Director, Dr.Tasgaonkar School of Management, Karjat (Mumbai)

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Dr. Varadraj Bapat Professor, IIT Mumbai Business School, IIT campus, Powai, Mumbai

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Dr. S. Ravishankar Formarly Sr. Faculty, IBRA College of Technology, OMAN

Annual Subscription

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Institutions Rs. 1200/- Individual Rs. 1000/-

Life Membership

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Institutions Rs. 12,000/- Individual Rs. 10,000/-

Financial Year

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1st April to 31st March

Address for Communication B-7/501, Vijay Park, Kasar Vadavali, Ghodbunder Road, Thane (W) 400615 Mobile: 9967357415, Tel. (022) 25970898, Management Guru: Email: ashtikarcd@gmail.com 1 Vol.1 (1) August-October 2012 Journal of Management Research


CONTENTS 1)

Role of Humanities in Business Organisation Dr. P. C. Shejwalkar ................................................................................................................................8

2)

Corporate Self-actualization: Imperative For Sustainable Growth Prof. Taposh Ghoshal ............................................................................................................................ 12

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Branding in High Technology Products Dr. Sanjay K. Patro ............................................................................................................................... 19

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Human Rights and Good Governance Manoj Kumar Sinha .............................................................................................................................. 24

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Review of Corporate Governance Models: A Conceptual Perspective Dr. Varadraj Bapat, Prof. Mehul Raithatha and Ashish Bhave ........................................................ 35

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Workforce Diversity at IBM: ‘Shades of Blue’ Program Prof. Syed Mubhashar Hasan .............................................................................................................. 41

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Innovation and Knowledge Management Prof. Jharna Kalra ................................................................................................................................ 44

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Global Crisis of Ethics Yeshpal Gautam ..................................................................................................................................... 48

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Building a New City: Tryst with Reality Pramod Hindurao .................................................................................................................................. 60

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Managing Absenteeism : A Deviance Behaviour at Work Place Dr. S. Ravishankar and Dr. H. L. Kaila .............................................................................................. 63

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From The Managing Director's Desk Sharayu Prakashan has an immense pleasure to show-case a brand new quarterly magazine titled “Management Guru: Journal of Management Research. “ This magazine is intended to explore the scholarly knowledge in the field of Management in the form of Research Papers, Research Articles, Case Studies, etc. It has been observed that there are numerous areas of knowledge remaining unexplored; there are countless problems to be diagnosed and fixed, lots of difficulties to be surmounted, scores of questions waiting for right answers, lots of situations demanding precise decisions. This calls for research oriented mind and inquisitive inclination of intellect. It is difficult; though not impossible, to find individuals who possess these traits. Scientists may be born and developed but the researchers in the social sciences and management are not born researchers. They need to be trained and developed over a period of time and under the sparkling guidance of great Gurus (Mentors). Through this magazine we would like to make a sincere effort to bring these great Gurus, their lively thoughts and demonstrated practices into limelight. So that the promising researchers would get enormous inspirations In order to hone their skills in writing more and more research papers. The results of different surveys reveal that in India a lesser amount of research papers are published as compared to other countries in rest of the world. It shows that research has remained a greatly neglected area in the academia and in the industry as well. However, recently, the ministry of human resources has made it mandatory for the faculty members to publish research papers regularly as a part of their job performance and career development. As a result of this policy research activities have gathered some momentum in the academic circles and many faculty members are seen trying out writing research papers. This is an incredibly encouraging sight. Sharayu Prakashan has also come forward to give a helping hand in the form of this magazine to the budding research scholars to pursue their research activity with fewer difficulties. For them we intend to introduce a new concept in the field of management research i.e. mentoring. The Management Gurus associated with our organization will share their valuable knowledge and experiences in the field of research and educate them in developing the subtle skills in various research areas. Those who are already talented and gifted research scholars, we will provide them a strong platform for by publishing their research papers regularly. It will serve as a pathway to the upand-coming generations of researchers.

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Management Guru aims to lead the management thought and practice on the path of Indian philosophy and value system. India has a great tradition of Master-disciple relationship which is known as “Guru-Shishya Parampara.” This aspect of Indian culture is so powerful to impart knowledge that modern management has also accepted the term Management Guru and underlined the importance of a Mentor or Guru in passing the knowledge to the shishya or mentee precisely and effectively. We are very fortunate to honor one such Guru – Dr. P.C. Shejwalkar to whom we have dedicated this first issue of Management Guru: Journal of Management Research. His contribution to the Indian management literature is a milestone in the history of Indian Management. The first half of the year 2012 saw another great moment in the history of India. Mr. Pranab Mukherjee has become 13th President of India. He is also considered to be a great Guru in the field of politics and management. Sharayu Prakashan gives him best wishes for his successful tenure as a president. It is our great privilege that the publication ceremony of this magazine is slated to be held during the auspicious period of 150th Birth Anniversary Celebrations of Swami Vivekananda a great proponent and adherent of Guru-disciple tradition. We are grateful to Swami Sarvalokananda, President of Ramkrishna Math, Khar Mumbai, for his whole hearted support in combining the publication function with the celebrations. We pray to god that this publication will be useful to all concerned. We are very thankful to Dr. Nanjibhai Thakkar Thanawala for his General help for sponsoring the programe. It shows his conscern for development of knowlege and Education. - Dr. C. D. Ashtikar

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Campus : Central University Of Jharkhand, Ratu-lohardaga Road, Brambe - 835205, Jharkhand City Central : Central University Of Jharkhand, Kanke Road (opp. Cmpdi), Ranchi (jharkhand) - 834008


FEATURES Dr. P.C. Shejwalkar Tel: 91-020-25449743 e-mail : drpcshejwalkar@asm.ac.in /imepune@vsnl.com

Date of Birth : 15th January, 1929

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Founder Director of Adarsha Shikshan Mandali’s Institute of Management Education since 1989.

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Founder Director of D.E. Society’s IMDR, Pune, for fifteen years.

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Founder Chairman and Director of IFSERT, Pune – More than 11000 Agents & 5000 DOs of the Life Insurance Corpn. of India trained from 1982 to 2006.

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President of the Pune Divisional Productivity Council for the last several years.

1. In the two years 2009 and 2010 (a) Life Time Achievement Award by Pune University (b) Life Time Achievement Award by Bharati Vidyapeeth (c) Felicitation Award by Commerce Department of Mumbai University (d) Special Life Time Achievement Award from Pune Municipal Corporation

10. President of Pune Management Association for six years.

(e) Life Time Achievement Award by NIPM (National Institute of Personnel Management).

11. Member and Chairman of the Advisory committee of Pune Region of Central Board of Workers Education for ten years.

2. Other Awards – a) b)

Award of Excellence from top Industrialists for his contribution in Management Education, Award given by the President of Million Dollar Round Table (on Insurance Practitioners) in the U.S.A. as the Founder of Insurance Education in India.

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Best Educator award from World Management Congress

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“Best Educationist” - Manibhai Desai award

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Pune Pride Award for Excellence in the world of Management Education,

f) g)

12. (a) Chairman of the Karve Institute of Social Service, for the last 24 years. 12. (b) Chief Trustee and currently President of Maharashtra Sahitya Parishad, for five years. 13. Former Professor In-charge as well as Head of the Department of Management in the University of Pune. 14. Former Director of Pune Stock Exchange for three years. 15. Former Member of Commerce Panel for University Grants Commission.

Award of Excellence in Education by the COSMOS Bank and Samata Bank Award.

16. Fellow Membership conferred by all India Management Association and All India Marketing & Management Association, New Delhi.

Brotherhood Foundation’s ‘Punya-Gaurava’ Award,

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As many as 83 students have already secured Doctoral Degree (Ph.D.) under Dr. Shejwalkar’s guidance. This is the world record.

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Nominated as Professor Emeritus of Commerce & Management Sciences, by the University of Pune.

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Nominated as President of Adarsha Shikshan Mandali.

Management Guru: Journal of Management Research

17. Author and Co-Author of more than 25 Text books and other books and more than 600 Articles and has given more than 4000 public and professional lectures so far. 18. Former Dean of the Faculty of Management, University of Pune. 19. Former Dean of the Faculty of Commerce, University of Pune.

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Role of Humanities in Business Organisation Dr. P. C. Shejwalkar Professor Emeritus of Commerce and Management Sciences University of Pune

Human Resources Management is not a mantra or technique. It is an attitude.

20th century, television, atom bomb and transistor had their impact on our thinking and attitude within a period of 5 to 10 years. A century or two ago, a man could lead his own life in a community that remained substantially the same. Today, the social outlook of the community changes in a short span of 10 to 15 years. In other words, technological change brings social change and wherever people come together, for any purpose, they develop a new kind of attitude based on their own vested interests and group motivation. This is precisely the reason why the students and also workers constitute an organized, and at times, an explosive force to be reckoned with. The modern organized groups, whether, in industry or in education, are characterized by materialistic outlook and are, therefore, influenced by personal and group considerations.

The Manpower Management assumes great significance even otherwise, but particularly in the present period of competitive environment in the context of globalization. The Manpower Management is essential at the national level in the field of Cultural, Social as well as educational activities. Our country has abundant intelligent human capital. However, its potential is not fully discovered nor it is fully utilized and developed. The Manpower Management is concerned with acquisition, Development, Utilization and compensation of everyone working in our organization. The human Resources Management and the Human Resources Development are an integral part of the long term manpower planning in the corporate world. In the approaching competitive environment, the very survival as well as the growth, of any institution will require a thoughtful approach towards building up the bridges of understanding and harmony between the management and the working class. This has been realized even in the highly developed western world, where earlier the leaders of the corporate world thought that technology alone will be enough for them to run the business. In fact, the advent of the internet technology has made it necessary for the management to make their employees knowledge-based employees. The shining example of the best Human Resources Management is that of Thermax, where the late Rohington Aga underscored the need for ethical values and the team work based on transparent interaction. The secret of the best Human Resources Management in Thermax, in the words of Anu Aga, is the ability of the management to accept mistakes, improving team work process, attracting and retaining the talent, developing a lot of openness and sharing and giving enough freedom to Executives for independent thinking.

This highlights the need, on our part, to institute a set of new policies that would develop a stage in which, employees influenced by personal motivations, can be effectively integrated into the various organizations. Our organizations have no longer remained only a formal mechanical chart, showing designationwise the formal duties and responsibilities of various people working in the organizations. Within each formal organisation, there is always an informal organisation that can be defined as a spontaneous but unplanned formation of a group or groups having their own customs, social norms and ideals. Informal organisation is a pervasive feature of all undertakings. The cliques of workers and managers that form at all levels are important illustrations, as also the restrictive devices which are employed by these informal groups to fight for their own ends. In such a kind of situation, today, prevailing in all the organizations, the management of human resources has become a challenging task. Organisation is what its people are. It, therefore, goes without saying that if you want to build up and develop the organisation, human values must take precedence over technical and economic ones and you must, from this point of view, build up and train human beings working in the organizations, in such a way that they can be effectively integrated into the various organizations needed by our society.

There is always an ever shortening interval between any scientific innovation and its impact on the attitude of the individuals and the groups. For instance, photography was discovered in 18th century and it required more than 100 years before it was used to make pictures, on a commercial scale, whereas in the Vol.1 (1) August-October 2012

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particularly because the work force has realized its growing strength.

Since 1950, the field of personnel management assumed importance and started requiring a wider perception of human behaviour and human values it now demanded a broad background in psychology, sociology, economics and administration. The personnel management has to deal with issues that require shrewd judgment of human behaviour and reactions. It requires an ability to understand the factors that motivate the people to work for the organization with sincerity and loyalty. The personnel management requires a capacity on the part of the Personnel Manager to project himself into other positions without losing perspective, so that he can integrate the personal interests of the employees and the interests of the organization in a suitable manner.

The personnel management, as an art, must, therefore, treat human beings as live components of the organisation. It must remember that human beings, unlike nag machines, are very sensitive to any change that the management may introduce in its philosophy and working. The management, therefore, must have a skill to introduce any change in its procedures and practices as well as in its policies, in such a way that they are with the knowledge and, as far as possible, with the consent of the employees. The personnel practices and conventions must also be such that the employees would take pride in their work and would like to improve their capacity and willingness to work together, persistently and consistently, for the organizations, with a clear purpose in view. In other words, it is the task of the personnel management to see that the morale of employee is always high. It is precisely for this reason that the personnel management is considered as an art. It must understand the nature of group dynamics and must be able to make the effective use of individuals and groups. It must see to it that nobody feels that his capacity and willingness to work is not fully utilized. The art of personnel management lies in assessing the skill and caliber of employees and inducing them to work without making much use of hierarchical authority. From this point of view, the personnel management has three-fold responsibilities:

This underlines the fact that human resources management is certainly a skill or an art which enables the personnel management to plan, to organize, to direct and to control the procurement, development, integration and maintenance of people, in such a way, that all of them would contribute with the best of their ability to organisational goals. This art of personnel management requires the personnel manager to develop a planned strategy for acquisition, utilization, improvement and preservation of human resources in an enterprise. Labour is not a commodity: Human resources management is an art for yet another simple reason that it cannot adopt simply a mechanical approach to the problems of labour. The machines can be made more productive by extreme specialisation but men cannot be made more productive simply by mechanically training them for the job. We may be able to purchase machinery and plant with the lowest direct outlay, but we cannot hire labour on the principle of “ The cheapest is the best�. We can keep plant and machinery so long as they are useful to us economically and we can throw them out for better when necessary. But we cannot throw out the human labour in this way. In other words, we cannot adopt a purely mechanical or crude approach towards the labour. The mechanical approach would certainly result in the creation of various management problems. That is the reason why the organisation has to face many personnel problems wherever the management is influenced by the old and traditional philosophy which used to consider men as screws in the machines. Employees are now no longer screws in the machines,

Management Guru: Journal of Management Research

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It must so organize the work and assign the duties that there is a proper coordination and harmony at all the levels of management.

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There must be a positive delegation of authority as well as voluntarily accepted responsibility.

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For effective co-ordination and team spirit, there must be a free flow of communication inside the organisation.

The Magic Of Handling Personnel

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Your men should not work as individual is, but should work as a team.

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Work with speed yourself, otherwise your team members will be sluggish.

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To your staff: Give responsibility, Delegate power, Give freedom of operation, Give guidance.

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Make them aware that time and cost overruns must be avoided,

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Make them feel that you have confidence in them,

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Praise them in public, but if need be, reprimand them in private.

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Extend support to a man at his work place. Try to solve his personal problems, if needed.

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Review the work load and procedures. Try to simplify them as far as possible.

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Be transparent with your staff, encourage discussions, accept constructive criticism and good suggestions.

of business is unlimited. India has a large population. But it is also its strength if we develop the skills of the people. It is advisable to acquaint our managers with literature, in which, dreams, fantasies, vision and reality are displayed. For a deeper understanding, one should read Girish Karnad’s ‘ Tughlaq ’ and another classic ‘ Don Quixot ‘ . It is interesting to read ‘ Pygmalion ‘ written by George Bernard Shaw in 1913. Later on, ‘ My Fair Lady ’ became a film based on this reputed story. This literature depicts such emotions as innocence, despair and virtue and meaning of life. Chester Barnard in his classic book, The Functions of the Executive, wrote that two or more persons getting ‘together’ to achieve one or more goals is an organisation. Margaret Mead once defined culture as that which binds people ‘together’.

10. Ensure that your objective is clearly understood by your team members. 11. Make sure of the exact role your men have to play.

In the context of planning and action for economic and social progress, people talk of the need for a management culture, because organizational failure can be the biggest handicap. J. Krishnamurti provides an interesting view of the phenomenon : all challenges are new, all responses are old; systems can never transform man, man always transforms the systems. – It is the relationship between organisation and culture as a way of life, a shared meaning of roles, events and activities and as the development of a collective subjective social reality.

12. Keep a close watch on people who flatter you. 13. Put a man on the job where he fits best. You will see a poor performer become a good performer. In this context, humanities have a role in all business and service organizations. Efforts to change organizational behaviour, particularly after the second world war have viewed management as a scientific endeavour, based on analysis and rationality. This scientific approach does cover quantitative, social and behavioural sciences. Our experience over the years has led to a realization that a large part of human life, its condition, nature, conduct and destiny that is not entirely rational is left out of this approach. For these are influenced by instinct, emotion and similar other appreciated elements. The inner life of the individual, the myths, symbols and ambiguities, have an important part. A failure to incorporate them has led to cynicism and helplessness. There is an increasing recognition about the need for a change in human values. This takes us beyond the scientific approach.

Goal Setting : It is not possible to choose goals purely on a scientific basis. Difficult questions arise : whose goals and for what? The humanistic aspect involving beliefs and values cannot be excluded. Whether resources determine decisions, or, decisions determine resources is a question that cannot be answered purely in scientific terms. It is largely a matter of human belief and human will. World view, vision, beliefs, values, norms, ambition, will, and culture as social and psychic realities are some of the concepts that are presently excluded from management education. They are best covered in poetry, drama or novels. These inputs could be added and linked to various types of managerial processes including leadership and decision-making.

The second reason is that an organizational behaviour cannot be limited either to mere commonsense and expediency, or only to science and technology, or even to the two put together. Management is basically a human phenomenon. Our heritage in literature can enrich management education. Man is culture-breeding animal.

It is also interesting to read Tolstoy’s masterpieces, War and Peace and Anna Karennina, both bring out his attempt at understanding the meaning of life. Tolstoy’s world is anti-hero, but not villainous.

There are several thinkers who have, through their literature, told that a role of human being in the growth

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Great skill and care are needed in the selection and handling of biographical literature as case histories. For this type

Sophocles’ Oedipus Rex for fate and destiny, or Shakespeare’s Othello, for the feeling of jealousy. Amongst modern plays important and useful for understanding leadership and decision-making are Shaw’s St Joan for a hero as saint and martyr and Eliot’s The Cocktail Party for sacrifice, service and suffering. Similarly, Arthur Miller’s Death of a Salesman and O’Neil’s The Iceman Cometh are classics covering failure, illusions, falsities, lies, shams, hallucinations and pipedreams. They can prove excellent counter posers to Don Quixote and help develop an understanding of the role of dreams in managerial life.

of literature could generate biases leading either to outright rejection or hero worship. The purpose is not to study a specific personality, but to use it to understand leadership, decision-making, and other related managerial processes. For example, in a course of humanities for managers, one could build either on a sequential flow from Don Quixote to Napoleon to Gandhi, or build on a comparison between three outstanding leaders of the present century : Hitler, Mao and Gandhi : their world views, dreams, visions, beliefs, values, norms, ends, means, symbols, meanings, successes and failures.

There is the simple statement of J Krishnamurthi : all major actions that have changed reality are born of a single human being. This statement suggests individuality, intentionality and heroic effort.

The selfless man is the thunderbolt. Let us strive only for selflessness, and we become the weapon in the hands of the gods. Not for us to ask how. Not for us to plan methods. For us, it is only to lay ourselves down at altar – foot. -Sister Nivedita

"It is already becoming clear that a chapter which had a western beginning will have to have an Indian ending, If it is not to end in the Self-destruction of the human race. At this supremely dangerous moment in human history, the only way of salvation for mankind is the Indian way." - Dr. Arnold Joseph Toynbee, British Historian!

“Know your past. Out of the past is built the future. Whoever tries to bring the past to the door of everyone, is a great benefactor to his nation. Look back, therefore, as far as you can, drink deep of the eternal fountains that are behind, and after that look forward, march forward and make Bharat brighter, much higher than she ever was.” - Swami Vivekananda

"Go and preach to all, 'Arise, awake, sleep no more; within each of you there is the power to remove all wants and all miseries. Believe this, and that power will be manifested.' .. If you can think that infinite power, infinite knowledge and indomitable energy lie within you, and if you can bring out that power, you also can become like me." - - Swami Vivekananda (VI.454)

“Our duty to others means helping others; doing good to the world. Why should we do good to the world? Apparently to help the world, but really to help ourselves. … Do not stand on a high pedestal and take five cents in your hand and say, ‘Here, my poor man,’ but be grateful that the poor man is there, so that by making a gift to him you are able to help yourself. It is not the receiver that is blessed, but it is the giver. Be thankful that you are allowed to exercise your power of benevolence and mercy in the world, and thus become pure and perfect.” – Swami Vivekananda (I.75-76)

"Each soul is potentially divine. The goal is to manifest this Divinity within, by controlling nature, external and internal. Do this either by work, worship, or psychic control, or philosophy - by one or more or all of these - and be free. This is the whole of religion. Doctrines, or dogmas, or rituals, or books, or temples, or forms, are but secondary details. - Swami Vivekananda (I.257)

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Corporate Self-actualization: Imperative for Sustainable Growth Prof. Taposh Ghoshal Prof. Taposh Ghoshal is Professor & Dean, School of Management Sciences, Central University of Jharkhand, Ranchi

Business At The Crossroads

for the impact of their business decisions and should reciprocate by exhibiting a socially responsible behaviour towards the society. In any case, the organizational approach to business reflects an ideology that has a far reaching repercussion on the growth and sustenance of organizations.

As the 21st century unfolds itself, business is passing through one of the most turbulent phases in recent times. The period is marked by unpredictability of markets - fluctuating demand, uncertain prices, rising input cost; and rising customer expectations. The problem compounded by recessionary trends has prompted instability leading to difficulties in survival and growth of organizations. Reeling heavily under its severe impact, the Indian industry is at the crossroads today. It has also forced organizations to explore newer ways to survive and grow. Today, organizations are realizing that as competition intensifies, there is an urgent need for business to rethink its future afresh. Within the organization, strategy-making must break away from its past, develop capabilities to understand the unknown; it must set its own agenda, invent offerings that revolutionize people’s lives, redraw industry borders and define new markets and operate efficiently. Industry must try to know the purpose of its existence and goals that it must seek to achieve for ensuring sustainable growth.

The divergent viewpoints on business stated above create a sharp chasm between making money and doing good for the society. Milton Friedman (1970) championing this view of the firm maintains that the prime responsibility of business is to increase conditions that enhances its profits. Friedman maintained that the social responsibility of business is to augment its profits. He states, “that responsibility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while conforming to the basic rules of the society ....” Coase (1988), in his seminal article “The Nature of the Firm”, also maintains that the nature of the firm is to minimize transactions costs and that business should limit itself to economic transactions. The other thesis presupposes that while business must not only maximize economic returns as its responsibility towards stakeholders, it must abide by the rules of the external environment of which it is a part. Carroll (1991) states that “the CSR firm should strive to make a profit, obey the law, be ethical, and be a good corporate citizen’”. (Duska,1997) and John Browne (1999) reaffirm that focus just on money doesn’t invest in the future - in its employees, new ideas, markets or products - & won’t be around for long. Any successful business is part of society, says Browne, “and exists to meet society’s needs.” This would involve ethical & moral considerations and is related to its accountability for its actions affecting the society.

This redefinition of the basic nature and scope of business with its intriguing issues raise challenges for review of the basic construct of business with respect to its approach, functions and beliefs. The societal demands have led industries to make a renewed attempt to redefine the purpose of business; the boundaries of business are being redrawn and a serious thought is being given to create conditions that would ensure a sustainable growth in a the fast changing environment of today. The ambiguity about the role of business in society is caught between two divergent ideological positions: one that considers that “the business of business is business,” reiterating that societal concerns are peripheral to the challenges of corporate management, and that the sole legitimate purpose of business is to create shareholder value. And the other viewpoint, that stresses that organizations are part of the society and as such they has a moral responsibility

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These two essential but ideologically different standpoints have shaped a gap on the role and responsibility of business and its correlation to the longterm sustenance and growth of societies. Theorists have

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They should describe their definitive rationale in a way that is more understated than “the business of business is business” and less defensive than most present approaches to the role of organizations towards society. It is time for business to evoke the intellectual and moral high ground from its critics and to construct social issues into strategy in a way that bestow actual meaning to them and guide them in their growth path.

tried to comprehend these varied philosophies about the role of business towards the society and have advanced a faith that corporations no longer exist to earn only profits, but also must endeavor to gratify different collective needs of the society Whether fostering such a idea is a persuasive reason for organizations to survive and grow in an increasingly competitive environment, or is a corporate keenness to assume an ‘exalted state of corporate mind’ that would rise above the sphere of business and presuppose a holistic form guiding an organization to an supreme state of “Self Actualization” as it pursues a corporate life, is worth exploring.

The New Paradigm Business is considered as an economic activity pursued for a symbiotic growth with the society. In this context, it is understood that business must not limit its activities to function as a commercial enterprise but to assume a greater role towards looking into the good of the society also. As such it is considered an indispensable constituent of business and is acknowledged as its ethical duty towards all of its stakeholders for achieving sustainable development economically, socially and environmentally. The spectrum of stakeholders in this context embraces everyone who has a stake in the organization shareholders, employees, customers, suppliers, local neighborhoods, the government and the environment. This idea rests on the assertion that the business operations have direct or indirect impact on the organization and the society and should own the liability for these effects. The core purpose of business therefore must transcend a growing financial bottom line and surpass to an area that would put the “broader context” of business also. This broader standpoint ascends above the conventionalism and embraces the wider gamut of accountability towards the social order, of which it is a part. This spirit would necessitate a newer viewpoint of how organizations should function in relation to the society for growing together. Organizational performance thus becomes intertwined with its commitment to assume a holistic perspective with broader roles and responsibilities to play in shaping the destiny of organizations in a dynamic environment.

The Sphere Of Accountability The term “Responsibility” assumes great magnitude in this context. If the term “Responsibility” is used to symbolize commitment of business towards the society, then profit becomes the by-product of the vast expanse which business decides to operate upon. The word “Responsibility” describes a poignant position that reflects a sense of ownership, accountability and answerability to a given set of people or group for any kind of actions that it might pursue. If working for the good of societies is associated with strategic returns, then it ceases to be an ethical response and becomes a strategic rejoinder to a stimuli received from the environment; in this case the society. History abounds with examples that demonstrate that business institutions that have stepped beyond its traditional sphere and have worked for the society have been the most respected corporate citizens and “living companies” (Aries de Geus, 1997). Examples of EMerck’s intervention in eradicating ‘River Blindness’ of the aborigines living along the Amazon River or Johnson & Johnson withdrawing ‘Tylenol’ after coming to know about some contamination in the drug are clear indicator of the ethical intent of these organizations towards the society. It also reflects their sense of responsibility towards the society that goes beyond the conventional paradigms of business.

In many organizations, assumption of Social responsibility is a mission and is founded upon wellarticulated socio-economic objectives that were meant to benefit the wider society along with its own stakeholders. It is witnessed that such organizations have always strived to spread prosperity through economic and social development and to be an ideal corporate citizen.

The relationship between big business and society could be viewed as an inherent social contract, with obligations, opportunities, and mutual advantages.By recasting the long-running argument about the role of business in society, organizations can extricate a argument that’s now placed between two seemingly irreconcilable viewpoints. Large organizations must take the lead in explaining their contribution to society.

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Imbibing such a spirit in the organizational psyche is a difficult task. If it is to be believed that organizations

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should reflect in the various social responsibilities that corporates assume for the society. Business is a broad concept and encompasses much more than ensuring a profitable bottomline. Organizations are part of the society; they are born, grow and sustain themselves with the support of the society and have the obligation to look after not only the interests of the stakeholders but also the well being of the society. Thus it is not only important for business to concentrate on the “What” part of its performance but also the “how” part of the whole activity. Business thus assumes a corporate individuality with roles and responsibilities towards itself and society.

are living beings (Arie De Geus, 1997) which, like human being also have a life, then organizations must have a persona that bestows it with an identity that is reflected in its thinking and actions towards the society as well. It also gives some echo of its intent about the same as it strides to the future. In its voyage to the future, the extent to which it would bring about happiness to peoples’ lives substantiates its identity as a socially responsible citizen. Business as an Organic Being Business organizations are not abstract entities. They are living beings given a form by people. The quality of life for an organization depends upon the purpose of its existence, its vision, ethical standards and viewpoint of looking at things. Business thus could be seen as an organic being with sensitivity, compassion, conviction and commitment that should mark all its endeavours as it passes through its corporate life. These characteristics are pre-requisites of excellence and are a precursor for any noble social cause. Just as an individual must nurture honesty, truthfulness, commitment, sensitivity and purity of thoughts and actions, organizations must also adhere to such qualities if it has to lead a good corporate life. On attaining such exalted state of wholesomeness, essential for corporate excellence, organizations become one with the society. This is that state of “corporate self-actualization” that organizations often aspire for. Dupont, Matshushita Electronics, Dana Corporation, Infosys, Tatasons are some instances of such elevated state of corporate excellence.

The Spirit of Empathy Business as a corporate individual should reflect a genuine concern of an organization towards its environment, people and the society at large. Business is a part of society and cannot be treated in isolation. It has a direct or indirect effect on the society and organizations should accept the responsibility for these effects. Business derives energy for its growth and sustenance from the society and therefore must understand its role as a responsible corporate citizen; it must therefore respond adequately for the well being of the society as well. The spirit of organizations should embrace a holistic viewpoint and aim for a symbiotic growth with its “stakeholders”. The magnitude of relationship should go beyond the periphery of commercial gains and have long-term need for growing together. Social beneficiation should be considered as an integral facet of business that plays a crucial role in shaping the destiny of organizations in a dynamically balanced environment.

The Core Purpose of Business The above proposition suggests that there is a need for organizations to describe the core purpose of business clearly. The core purpose of business must not only explain the commercial aspects but also define its “context”. The context of business must illustrate the quality of interface between organization and its environment at three levels – individual, group and society. Organization has the responsibility of respecting the basic rights of individual – the right to live a healthy life, the entitlement to grow and the right to be assured of a safe future for people and their progeny. Organizations must also create and deliver “Value” which could be valuable to groups for the long-term benefit. In the process, a faith is reposed on them would evolve a corporate personality that is so significant for the life of organizations. Organization and society thus become complementary to each other. This affiliation

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Corporate responsibility is a commitment that should flow from a value system that is deeply engrained in the psyche of the organization. This value system generate a conviction that organization is a part of the society and is dependent for its growth on the corresponding growth of the society. It is therefore the moral responsibility of organizations to be sensitive to the needs of the society and give an emotional response for alleviating the misery of mankind and bringing about a ray of smile on their faces. Leadership Leadership is the most important constituent in an organization that defines the total framework of association between the corporate and the social order. A leader harmonizes the corporate objectives with its

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its super-ordinate goals. Organizations need to assume moral accountability and address to these issues empathetically. In order to render selfless service, it is important to dissociate societal role of organization from strategy and deliver it as a moral institutional responsibility. This service however, must not be in a state of abstraction. There is a need to have established systems and structure to assess the socio-economic need of the society; that would involve planning, organizing, implementation and control of various organizational activities. These corporate movements should be guided by sensitivity; compassion and a realization about the real needs of the deprived and reciprocation must come forward selflessly as a responsible social entity.

responsibilities. He is the locus of energy in the organization; the guiding force, and has the responsibility of aligning the organizational energy for the well being of the society alongwith operational excellence. He must foster the value orientation within organization and craft an ambience where relates with the needs of the society. A leader has the onus of finding ways of changing the destiny of mankind from one of accumulation of miseries to one of happiness. In Plato’s words he has to be a “Philosopher King” who is guided by values in all his decisions; he must have sensitivity, compassion and urge to fulfill his obligation to the society. Leader must contain impersonal love, a higher self, Sattva Guna (Truthful) and Dharma-Moksha (religious and pure) along with self-restraint, renunciation and Charisma. This will help develop Maitri (Friendly), Karuna (sympathetic), Mudita(Full of happiness), obedience and respect amongst all employees. The love dimension of leader should revolve around the basic desideratum of true impartiality and non-exclusivity. Impersonality is not apathy but a wider all-embracing movement of the mind, which transcends petty loyalties and affections, antagonisms and aversions. The higher self-Sattva Guna – Dharma Moksha – process of self-culture slowly ripens into this kind of impersonal love.

Organizational Excellence Organizations, being part of the society and aiming to provide altruistic rendering to it must be in a state of constant harmony with environment pursuing excellence. Such excellence would mean a state of supreme purity, transparency and righteousness that would take it to the highest level of corporate consciousness. Such an organization would bring what the customers and stakeholders expect and rise up to the state where it is able to deliver goods to the society. Organizations should therefore be able to integrate all its activities into a unified whole for the good of the society.

Leader must foster love amongst employees that is based on lateral relationships, constituting the underpinnings for conviction, partnership, seriousness, sharing etc. Maitri implying the culture of friendliness with the happy and fortunate, karuna of compassion, concern and kindness for the unhappy and afflicted, mudita of joy towards the good and virtuous, and upeksha of indifference to the dissolute. Development of this affirmative character would create a peaceful state of mind, which would serve to smoothen the dissonance that may creep in while functioning within the framework of the organization and demolish its fabric.

The Socially Sensitive Organization Appreciation of the meaning of corporate life is then the first pre-requisite for organizational sensitivity. It is its ability to appreciate the purpose of its existence and depict the horizon of its functioning. It must comprehend that organizations must work towards making its life worthy of its existence. The transcendent, trans-empirical dimension is essential for creating sensitivity within the organization. Since people are at the core of organizational life, there is no reason why managerial thought should not show courage and wisdom to by speaking of metaphysical management. Each individual in the organization should make conscious and sustained effort towards experiencing this holism within and through its work.

Selflessness in Service Selflessness in service is an integral part of selfactualized organizations. Corporate endeavours intended to address societal issues that require “giving” (Chakraborty, 1987) with selflessness in its intentions, approach and actions and should not be equated with planned strategic programmes or benevolent corporate projects involving philanthropy. Social responsibilities need to be fulfilled by organizations must form part of Management Guru: Journal of Management Research

Organizations, in order to be socially responsive, must foster a high level of compassion for empathizing with the pleasure and pain of the society and come forward to alleviate them. To be socially sensitive, organizations must possess the positive virtues of truthfulness, sincerity, humility, compliance, honesty, 15

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exalted state by ethical means. A pure consciousness would emanate in such an organization and would not only be sensitive to the needs of its own people and also the environment, but also shall be responsive to their needs. Such responsiveness would come again from the ethical value systems developed over a period of time. Such an organization would be focused, receptive and vibrant and would be focused in its pursuit towards aligning its own growth with that of the society. Such organization would reflect its existence and growth as a living entity would reflect faith and trust amongst all its members and establish a bond of oneness with the society; it would be a socially responsive organization – an ideal corporate citizen.

purity, fortitude and consideration for fellow-beings. This should be grounded on eternal values and must be nurtured and internalized. Organizational endeavours must begin with two basic convictions - that business can attain success only with a higher degrees of ethico-moral rectitude; and that like each individual, is as much a ‘cause’ as an ‘effect’ on the quality of society and environment where it functions. It is the quality of emotions and feelings, which, independently of the intellect, determines the level of its sensitivity. In the realm of daily choice and decision-making, therefore, it is the quality of the subjective of the agent of choice or decision, which ultimately determines its degree of objectivity (or fairness or equity). The finite aspect of organizational self is consciousness of its separateness, and there it is ruthless in its attempt to have more distinction than all others. But in its finite aspect its wish is to gain that synchronization which leads to its rightness.

Such a socially sensitive organization must have the ability to realize the purpose of its existence should be able to recognize its internal strength, create a state of transcendental symmetry and generate distinction through work. Such organizations would reinforce the inner focus, engrain moral virtues, foster purity in thoughts and actions and radiate goodwill and harmony. A clear view of each of these attributes would explain the necessary dimensions of a socially sensitive organization.

Value-inspired culture building within organizations demands both a clear, sound, coherent and transmundane beliefs as well as a firm devotion of details in its translation into thought and action. The transmundane base of value-structure is emphasized because it is only from a raised platform of viewing oneself in relation to others in the organization, society, nature, the Universe that one can recognize one’s pettiness of means within given ends, and feel the urge to elevate them to dignity. Dedication to details means evolving certain common ways of thinking, acting and responding that could permeate and breathe life into an organization, because faith is a necessary means for arriving at a realization – a state from ‘Imperfection’ to ‘Perfection’.

Identifying Inner Strengths Organizations must make a conscious attempt to explore its core spiritual strength. This strength is above the material strengths of an organization and should be the guiding force of all its thoughts and actions. It fills the organization with positive energy and leads it to a state of Aatmic Poornatva (complete corporate consciousness). This corporate consciousness unites with the universal consciousness, which then forms the foundation for all-embracing goodwill and empathy.

The source of energy of a socially sensitive organization lies in its leadership. Leadership should be visionary, righteous and sensitive. A visionary leader should be able to think beyond tomorrow, comprehend new ideas and take the society along in the organization’s journey to excellence. This would demand righteousness – purity of thoughts and actions, compassion, truthfulness and honesty of purpose. A sublime consciousness would guide its providence and sensitize each and every employee for the sustenance and growth of the organization as well as for the welfare of the society at large.

Creating Transcendental Equilibrium A state of transcendental equilibrium is an essential pre-requisite for nurturing organizational sensitivity. In Gita, it is termed as the nirdwandwic (Conflict-less) state. This is a state wherein there is absolute clarity of thoughts and purity in actions. In this condition, whatever the unpleasantness in circumstances, organization shall be in a position to receive it with perfect calm and respond rationally. This is necessary for managing the varied forces of the society. Excellence through Work

A futurist, virtuous and responsive leader would create an organic entity full of life, which like an individual would have the opportunity to rise to an

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When the motive behind excellence is competitive egotism, it is bound to affect the organizational health

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the virtuous and indifference towards the depraved. Organizations should be able to ward off hatred, callousness, jealousy and mean delight that often turn it to impurity. Ability to comprehend the pain of the society and lend a hand towards alleviating their sorrows arises from a sensitivity that is generated though pursuing pure thoughts and actions.

adversely. For organizations, an alternate way is to be sought and practiced as an alternative basis for excellence. Objective excellence in work would necessarily imply subjective excellence across the organization. Therefore it is necessary that the spirit of excellence is permeated within each and every individual working in the organization and is reflected in all initiatives taken up for pursuing the vision of the company.

Towards New Horizons As business expands its horizon with emerging expectations and consequent responsiveness on the part of corporates, there is a constant effort to understand the new role of business. Conscious infusion of the new role as a socially responsible citizen necessitates a re-look at the very purpose of business. Companies are breaking the mold are moving beyond corporate social responsibility to social sensitivity as a precursor to assuming excellence in corporate citizenship. These companies are the vanguard of the new paradigm. Thus, business would not be an end in itself. It would only be a means to achieve an end; that end being the man himself and the individual. Business, therefore, should be in a position to contribute to man’s happiness, his freedom and his material, mental, moral and spiritual growth.

Reinforcing the Inner Focus Organizational studies have proved that it is only this kind of inner orientation, which can usher in better organizational psyche. Systems, procedures, structures are at worst only cosmetics or, at best, only palliatives. A constant reinforcement through inner focus leads to a liberation from the mundane to that higher ethical self that is necessary of organizational excellence. Practice of this inward movement to such a fixed point is a way to reach the stage of organizational selfactualization. Moral Virtues The source of organizational stress, anguish etc. is caused by ethico-moral infringements. Therefore there is a need to start by discarding the mechanical view of business for a moral one. The ethico-moral law of cause and effect, called the karma theory decides the destiny of organizations. It is therefore necessary to nurture the ethical behaviour in the organization. This kindles the sensitivity towards society and ignites an urge to serve the society as its prime moral responsibility.

In the Indian scriptures, individuals have five rins (debts) – deva (Gods) rin , rishi (Sages), rin, pitri (Father) rin, nri (Society) rin and bhuta (Mother Earth) rin, right from the moment of birth. Deva i.e. Gods for his existence in this beautiful world, Rishi i.e. Sages who show the light of knowledge, Pitri i.e. father who gives him an identity, Nri i.e. the society to which it owes its existence to, and Bhuta i.e. mother earth which is giving sustenance. Organizations, like individuals also have an onus of these debts. Organizations must be grateful to the Almighty for their existence and growth, the brilliant minds who guide the course of its destiny successfully, stakeholders who let it born and prosper, society, which gives it sustenance and mother earth which gives it life. It is an obligation on the part of organization to respond to these debts truthfully and try to reply it with utmost purity of purpose and with the same love that it has being receiving from the society. Like individuals, sensitivity develops in the organization when the spirit of the organization is pure and it is necessary to make a conscious attempt to keep that light glowing – forever.

Fostering Purity in Thoughts and Actions Indian scriptures explain that Purity in thoughts and actions (Sattwa-Guna) is the most superior element in the constitution of the empirical personality of organizations. It works to enhance the human consciousness and illuminate the purity of spirit. This neutralizes the negativity inside the organization and helps in imparting inner dynamism and expansiveness to it. It also generates a sublime strength, which sensitizes the organization to alleviate sorrow of the society and guides to tread on the path to excellence. Radiating Goodwill and Harmony The organizational psyche should be strong to radiate goodwill and harmony towards one and all in the society. There should be friendliness towards the happy, compassion for the unhappy, happiness towards Management Guru: Journal of Management Research

As organizations move ahead with the times into an increasingly competitive business arena, there is a need for serious introspection and redefine the purpose

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of their existence. This requires a willingness to appreciate that the purpose of existence is the ability to see beyond tomorrow and pursue the path of progress while remaining in harmony with a environment. This learning would begin with sensitivity about its environment in which it works and of which it is a part. Organizations must foresee the shifts in the environment change as per need and transform continuously to enhance its competitiveness. Long-term growth and sustenance would require an

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organization that is concerned about its future in relation to its environment and respond with sensitivity. Such sensitivity should be driven by a social responsibility and company’s concern for its own destiny. Alertness and responsiveness would help create a climate in which business growth would ensue. Organizations must realize that to take care of the interests of its stakeholders, they must survive and grow. But they must also fulfill its potential and aspire to become as great it can be. They must always be in quest for excellence. A persistent endeavour to outgrow competition, always finding newer ways to offer superior value to the customers at a continually lower price is what would make organizations excellent. There is no reason why organizations cannot manage the turbulence of times and manage change effectively.

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Branding in High Technology Products Dr. Sanjay K. Patro Professor, Marketing Area XLRI, Jamshedpur C. H. Area (E), PO. Box: 222 Jamshedpur 831 001, India sanjay@xlri.ac.in

Introduction

cannot contest that it takes a superior product to win market acceptance, product superiority does not guarantee acceptance. One needs to then define a superior product as one that best meets customerdefined needs and not as one that is defined as superior by a supposed technical expert. High technology products are not exempt from the workings of consumer behavior. Davis and Ueyama(1996) have reported that their customers were their best source for new product and service ideas. Developing customers along with the products is critical for their faster acceptance. Ed McCracken of Silicon Graphics, Inc. refers to those kind of potential buyers as “lighthouse customers”.

Most of the knowledge about branding strategies has evolved from the experiences in the consumer goods industry. The evolution is faster in that sector because of the intensity of competition and the realization that investments in brand building pays off handsomely. But this concept is also equally applicable to business to business marketing and high technology marketing. We must not be lead into defining value in the technology markets in terms of features and priceperformance. Price to performance ratio is one of the critical factors but not enough for success. Performance is the price of admission in high-technology markets. Value in this market as in other markets is a much more complex construct. A rational decision means one that maximizes value, which can be based on both objective and subjective criteria.

Misconceptions Marketing

High

Technology

Many managers in high-technology firms have the misconception that marketing success depends primarily on the price-performance ratio and its capability to churn out a number of high performing gadgets. When one operates with these assumptions, brand management is relegated to a back seat and its role gets confined to a trademark, logo, tag line or an ad campaign.

The traditional marketing concept of differentiation runs into trouble in the emerging consumer markets because the differentiation for high-technology products has so far been based on technology features that the layman can’t get excited about. Those companies that dig deep into what consumers really want, the companies that inhale marketing will dominate the next phase of opportunity and growth for hightechnology products. The challenge is how to change from a product to a consumer focus. And that change is going to be fuelled by brands.

The second misconception is that brands are relevant only when emotions play a major role in the purchase for example cosmetics, garments and etc. For high-tech gadgets brand’s role is just confined to easy distinguishability and nothing more.

In a world demanding increased compatibility, technology for its own sake is no longer an adequate product differential. Better brand identity and customeroriented benefits, not better specifications, will determine who remains in business.

For a high-technology product to gain market acceptance, it will need to attract not only a broader base of customers but also a network of ancillary products and services. Many of the senior personnel leading high-technology companies have grown up through the technical side of the business and do not truly understand what brand management can do for their companies. They manage their product lines or marketing mix activities with little consideration for the development of long-term brand relationships. Many also admit that their offerings are fast becoming

High-Tech Products and Marketing Cahill, Thach and Warshawsky (1994) argue that the marketing concept does have validity as a way to organize new product development efforts so that both customers and firms will be better off. Although one

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about

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computer is another example of this pace. In this market, in less than five years we have the fourth generation computer. In this context, product-line management becomes critical. It is interesting to note how Intel learnt the relevance of branding the hard way. It initially launched the alpha numeric-branding tactic and launched 286, 386 and 486.Since it had not patented the numericals, competitors came out with their own versions of similar products with similar brand names. It realized the mistake and while launching the next generation microprocessors, Intel branded the new processor “Pentium”. Competitors matched its speed, but they could not imitate its brand.

commodities. Products and services in the hightechnology industry are becoming increasingly similar. If one manufacturer boasts of more “feeds and speeds” today, competitors catch up tomorrow. The concept of “technological parity” is increasingly witnessed in the high-tech category. Current high tech consumers range from professionals buying their computer for their own office or home to experienced corporate buyers selecting a system to be integrated into their corporate network. These consumers are typically experienced computer users who see little differentiation between the various technical features of computer products. They seek reliability and service that often accompanies a wellrespected brand name. One study by Weiss and Heide(1993) shows that the more experienced computer users actually perceive lower levels of differentiation in high-technology products than do inexperienced users. This just goes to show that the marketers of high technology products will do well to consider developing brand equity in their respective products. The need is for a brand-marketing program that focuses on product’s tangible and intangible dimensions. The simple focus on performance to price ratio has given way to the total experience of the brand acquisition and usage. To day the brand experience includes emotional and value expressiveness in addition to the functional performance.

With many of the products being in the early stages of adoption curves, the “techies” and other experts have a major influence on early adopters and the early majority. A study by Mahajan et al (1990) found early adopters and the early majority buyers to be more involved in buying, evaluation and advising others about high-tech products. It therefore becomes important to first create strong brand awareness and preference among the influencers prior to reach out to the masses to stimulate demand. In consumer brands, the marketer wants to know how thousands of potential buyers would think of and respond to a given position or image and so they tend to look for a common denominator. With complex technical products, however the marketer should use an inverse technique: he must want to know what the opinion leaders are going to identify with. Then, he must attempt to make these opinion leaders mention and recommend the product in their research reports, columns or conversations. Oracle, the leader in database software, and Novell, the leader in network software created fan clubs among the technical innovators, and those fan clubs extolled the virtues of the product. Besides constituting the early adopter segment they acted as missionaries to the rest of the market.

Some of the biggest players in the computer industry use brand building to maintain a competitive advantage. HP with its consistent message of high quality and reliability, and Intel, with its Intel Inside campaign, are two excellent examples of leaders that are intent on remaining leaders by not letting their brands become sullied by poor quality. Microsoft consistently pounds home the message of “safe buy” and “easy to use” in its advertising, and Apple Computer has become synonymous with “fun” for a whole generation of computer savvy kids. Microsoft is addressing the user personally with an aspirational tag line; “Where do you want to go today?”

An Intelliquest (1999) study showed that a majority of companies are constantly reviewing the market to consider the introduction of new brands across a spectrum of product categories. Of the firms surveyed by Intelliquest, 70 to 80% are constantly searching out and evaluating new products. This means that even though a company may have established a leadership position within an industry, its competitors will be able to threaten continuously its market position as new products and opportunities emerge. Here the

Product Life Cycle in High Technology Products High technology products differ from consumer products in the pace of their movement along product life cycle and the rate of product evolution. PLCs are increasingly getting shorter across product categories and more so in case of high-tech products. There are cases of plcs routinely as short as nine months at times creeping into the six months range. The notebook

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a situation such as this, the channel, which is a brand in its own right (Macy’s, Sears, Comp USA, Microland) may enter into the purchase decision and become the factor that swings that decision one way or another.

new generation offerings of a trusted brand will facilitate faster adoption. Importance of Standards High-technology markets have another very interesting characteristic. The first mover advantage is exhibited at its best here. Very often the victor in a product category is determined by the success of that player in establishing the standards in that category. Firstly standards must be set and secondly those standards must be those followed by your company to ensure payback for the investment in R&D.

The complexities of technology offerings marketing are evident in the branding issues associated with the channels of distribution. Should the brand be developed only to reach the final end user, or should one focus on the marketing, sales, and distribution channels? The answer to that probably depends on whether the product falls at the “highly technical” or the “mass market” end of the spectrum.

This phenomenon is the result of a need for technical standards as anything else. All the vendors need to have their offerings match each other and talk to each other to become a success. It may not be the best possible offering but the fact that it is widely used becomes a barrier to new introductions. The objective must be to become the dominant design like the QWERTY keyboard…not the best, but the way it is being done. A feature that pops up often in the study of high-technology industries is the reluctance of the market leader to embrace radical changes in technology. The result of this reluctance to adopt successful new technologies has been a change of leadership at breakpoints in technology. The torch is passed on to new leaders as the established leaders find it difficult to come out of incumbent inertia and fail to leap across technological discontinuities. Only the earliest moversboth into new markets and out of fading ones-are likely to reap profits.(Davis and Ueyama,1996)

Branding a product is as important for the channel members as for the final end user. There is no doubt that when a new kind of technology gets introduced, it needs to be adopted by not only the influential customers but also by influential channel members who ‘make a market’ in new technologies. For new or complex technologies that haven’t reached mass market or commodity status, the marketer needs to make sure that his communication reaches not only the final buyers and customers, but also the intermediaries, or channels, as well. A study by the International Data Group studied the role played by the channels of distribution in the buying of IT products. This study explored channel usage, perception of channel alternatives and the relative importance of the channel in the purchase process. It used a sample of 947 business respondents who provided inputs on where to purchase five product categories namely desktops, notebooks, printers, application software and LAN’s.

Distribution and Branding Today only a few of the marketers are selling through their sales force to buyers. Most high technology items are sold through a dealer, reseller or system integrator .The quality and the service level of these intermediaries vary a lot and it becomes difficult to ensure that the brand stays intact in this environment.

The study reveals that the purchasers of technology products make brand decisions before they make a decision about the channel. Further majority of buyers purchased the brand expected before entering the channel. Almost all purchased a brand they were aware of i.e. they picked up one from the evoked set before entering the channel. Price differentials, product displays, or point-of-purchase advertising may expand the consideration set a buyer had formed before she entered the channel of distribution, but the study does bring out the fact that the odds are heavily in favor of a brand considered before the actual shopping. The study also revealed that the brand was more important than price in final decision. In other words it becomes essential for the marketer to ensure that the customer is aware of the brand before he enters the channel.

The example of the Intel, Microsoft, IBM, brand triangle shows how the brand fluidity in a dynamic market creates a marketing tug-of-war. Intel, Microsoft and IBM each want the consumer to believe that theirs is the brand to depend on for satisfaction in a PC purchase. Intel says the processor makes the difference. Microsoft says it’s the software. IBM says it’s the way the system is put together. Each claim has some truth to it, but today, neither the processor, the software, nor the system is unique or irreplaceable. In

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of brand equity and the lifeblood of all successful corporations, is therefore undermined by the turbulence of the product range and the ever-shorter product life cycles.

Thus the challenge for the marketer is to generate buyer consideration of his brand early in the purchase process rather than hoping to catch the buyer’s eye at the point of purchase. In response to question of the sources the buyers used to gain information about the products, the top two responses were articles and reviews in computer magazines and product advertising. This indicates that other parts of the marketing mix must not dilute the public relations and advertising programs for the brand.

If we assume that product innovation is necessary, then the basis for the customer relationship must be clearly something that is greater than just the product. That is where the corporate brand comes into prominence. This is very different from FMCG marketing where the product-level branding is common. The desired result is for the customer to see the new offerings of a company in the context of their wider relationship with that company. Also since specific offerings are generally configured for specific clients, adopting the route of sub-branding is not feasible.

A New Technology Marketing Paradigm Driving Markets Vs.Market Driven High -tech marketers want to ride on the breakthrough technologies and in the process they drive new markets. Market driven philosophy implies accepting the market structure or behaviour of market players as a constraint and trying to enhance value to the customers within these constraints. In contrast to this driving markets refers to changing the composition and the role of players in the market.(Jaworski et al,2000) Setting up new rules of the game is not that easy. It has to join hands with a set of software developers, semiconductor producers, systems integrators and resellers. Since the lead players want to have their offerings as the standard, “spider vs.spider competitor sets” are often observed in the marketplace.(Hagel,1996). Shapiro and Varian (1999) refer to this dynamics as “systems competition”.

Because of the relatively great need for service and support associated with high-tech products, the issue of who exactly is the seller is critical. If a “Intel Inside” microprocessor fails, it is the computer company that installed the part that is responsible. Customers don’t want to buy a basket of hardware and software, they want to buy a complete offering, and they want reassurance from somebody. That somebody is the creator and owner of the corporate brand. In the volatile turbulent markets, it is necessary to have a corporate brand.Thus in high-tech markets brand as an products trategy is no longer relevant. It has given way to brand as an idea or philosophy strategy.(Kapferer,1998) “Marketing experts know that it takes in the order of $1 billion of advertising to build a significant share of mind across North America, Asia and Europe. Yet what is the marginal cost for Sony, in terms of brand building, when it launches a new product bearing those four famous letters.”(Hamel and Prahalad, 1994)

The Need for Corporate Branding The furious pace of innovation that characterizes the high technology industry makes the task of building brand equity a difficult one. Here innovation is not just a necessary task but the most obvious source of competitive advantage. Branding however is about continuity, not change. This fact has been made clear from the performances in other industries and through research. Brand equity is composed of learning from a number of sources, including product experience and advertising, and is of value to the customer because it yields economies of effort in future decision making.

High-tech Branding-Environment and the Ecosystem The spider web vs. spider web competition calls for the aspiring leaders to first know what promise to make and with how many and what types of allies to rope in. It must also ensure that the promise of value is understood and fulfilled as the company manages complex networks of value adding partners. There was a time when the lead players can outsource the best of the components and market the whole solution under its name. Today, the component marketers have also become market savvy and are devising “ingredient branding” strategies to create pull from customers by

If product innovation is faster than the average customer buying cycle, then the customer will face a completely new range of options every time he or she buys a technology product. In such a case the application of the previous product specific brand learning becomes problematic and the probability of the previous supplier being chosen gets reduced. The long run customer relationship, which is the main benefit

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heightening brand awareness and standing for specific values. In this context, it makes immense sense to understand the relationships that other allies have with customers and to find out how that would affect their own brand. Each of the partners has a specific role in the value equation and in a way influences each other. In this scenario, the brand image, personality and values represented by each of them have to be carefully orchestrated to develop a winning combination that would be preferred by customers. Now the ingredient branding strategies adopted by Intel with a host of computer producers is a well-known fact. Even the strong equity of Sony could not withstand the lack of support of well-known component suppliers. It had to go for collaborating with them to strengthen its brand presence. Winkler (1999) observes that the day of stand-alone big players have given way to the combined power and imagery of a host of independent players. If one brand ecosystem has to stay relevant, each of the players has to move at a specific speed with their own contributions towards enhancing the efficacy of the whole solution. In case of role confusion or one or more partners failing to contribute as planned, another brand ecosystem would over take and take a large part of the market. In most of the high-tech markets customers find it extremely difficult to make objective evaluation, there brand alliances become critical to customer’s quality perceptions.

Developing Customers Before Products”, The McKinsey Quarterly, Number 3, 72-83 3. Hamel,G. AND Prahalad ,C.K.(1994),” Competing for the Future”,Harvard, Harvard Business School Press 4. James M. Utterback(1995),” Developing Technologies: The Eastman Kodak Story, The McKinsey Quarterly, Number 1, 130-143 5. Jaworski,Bernard,Ajay K.Kohli and Arvind Sahay(2000),”Market Driven Versus Driving Markets”, Journal of the Academy of Marketing Science, Vol.28,No.-1,45-54 6. Kapferer,Jean Noel(1998),”Strategic Brand Management”, London, Kogan Page 7. Mahajan,V, Muller,E. and Srivastava, R.K(1990), ”Determinants of Adopter Categories by Using Innovative Diffusion Models”,Journal of Marketing Research,vol.27,February,37-50 8. Mahajan,V, Muller,E. and Srivastava, R.K(1990),” Determinants of Adopter Categories by Using Innovative Diffusion Models”,Journal of Marketing Research,vol.27,February,37-50 9. Prokesch,Stern (1993),”Mastering Chaos at the HighTech Frontier: An Interview with Silicon Graphics Ed McCracker”,Harvard Business Review,Nov-Dec,135-144 10. Ries, Al and Laura Ries (1998),” The 22 Immutable Laws of Branding,New York, Harper Collins Business, 11. Roberts,John H.(2000),”Developing New Rules for New Markets”, Journal of the Academy of Marketing Science,Vol.28,No.1,31-44 12. Thomas, Ramesh J.(1999),”No IT Brands?”, The Economic Times, 14th December 13. Turner,Rod (1993),”Brand Building in the Software Marketplace, Software publishers Association, San Diego, 14. Ward, Scott , Larry Light and Jonathan Goldstine (1999),” What High-Tech Managers Need to Know About Brands” Harvard Business Review, JulyAugust, 85-95 15. Wave 3,The Channels,”Buying IT in the 90s”,Intelliquest and International Data Group 16. Weiss, A. and Heide, J.B.(1993),”The Nature of Organization Search in High Technology Markets, Journal of Marketing Research, Vol. 30, May, 220-33 17. Winkler,Agnisezka M(1999),”Warp Speed Branding:The Impact of Technology on Marketing”,New York,John Wiley and Sons,Inc 18. Zagas ,Jay and Edward Crowley(1995),”Brand Emergence in the Marketing of Computers and High Technology Products”, Journal of Product and Brand Management, Vol. 4 No. 1, 56-63 19. “Branding and Innovation”(1999), Intelliquest White Paperwww.intelliquest.com,

Conclusion This article discusses the dynamics of competition in the high-technology products and the role of branding to navigate smoothly in these shifting markets. Marketing experts agree that only the earliest movers -both into new markets and out of fading ones are likely to reap profits.In this maze of entry and exit only the corporate brand can provide strength and credibility to a firm . The “spider versus spider” competitor sets are the reality in today’s high-tech markets .In such a scenario the brand eco-system is affected by the dynamics of the environment. Only constant interaction amongst the web of partners for enhancing the performance and imagery of the whole network can sustain the alliance. REFERENCES 1.

2.

Cahill, Dennis J., Sharon V. Thach, and Robert M. Warshawsky(1994),” The Marketing Concept and New High-Tech Products: Is There a Fit? “Journal Of Product Innovation Management, VOL.11,336-343 Davis,Robert J. and Shinichi Ueyama (1996)”

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Human Rights And Good Governance Manoj Kumar Sinha Professor of Law, The West National University of Juridical Sciences, Kolkata, India

Abstract : The concern for promotion and protection of Human rights has been extraordinary over the years. Their protection demands an enabling social and political milieu and indeed conducive environment through appropriate regulations, institutions and procedures framing the action of the State. At the same time Good governance has equivocally been highlighted at various platforms, for its immense contribution to peace, progress and democratic institutions. It is rightly stated that Good governance policies empower individuals to live life with dignity and freedom. Good governance and human rights are mutually interdependent and reinforce better conditions of life, stability and freedom. Good governance cannot happen in isolation from human rights. The two concepts reinforce each other and many of their core principles are common. Popular participation, accountability, transparency, and State-responsibility underline the human rights approach as well as underpin the good governance framework as defined by the U.N. Commission on Human Rights. Although the linkages between good governance and human rights can be traced in the provisions of human rights instruments, as well as national constitutions, it is only recently that the idea of good governance has entered the international discourses on economic development and human rights. Interestingly, the importance of good governance was first recognized in the context of development and its first enunciation was in a World Bank Report which pointed out that good governance is a structural necessity for market reform and has emerged as a response to concerns over the impact of different governance practices on economic performance in the context of development policies. Consequently, the international economic institutions and aid agencies interposed good governance policies and regulations as a precondition for disbursing aid. Indeed, democracy and development will only be strengthened by pro-people and pro-human rights strategies. The interplay between good governance and human rights is a remarkable value addition that governance provides to development, human rights, and vice versa. Summary: 1. Introduction2. Essential Aspects of Good Governance 2.1. Democracy Based on Free and Fair Election 2.1.1 The Human Rights and Democratic Government2. 2.Independence of Judiciary2.3. Right to Fair Trial 2.4. Right to Information 2.5. Respect For Human Rights 2.6. Corruption 2.7. Gender Equality2.8. Role of Civil Society 2.9.Ethnic Conflict and Civil Wars 3. Conclusion Keywords: Human Rights, Good Governance, Development, Millennium Development Goals, Transparency, Accountability, Democracy and Civil Society

1. Introduction

governance is utmost essential.3 The concept of “good governance” emerged in the late 1980s as a response to concerns over the impact of different governance practices on economic performance in the context of development policies.4 This concept was subsequently expanded to include other dimensions, including political, human development and the realization of human rights.5 Human rights are universal legal guarantees protecting human beings against actions and omissions that interfere with human dignity and fundamental freedoms of individuals.6

The term good governance is frequently used in development literature.1 The term governance implies the manner in which power is exercised by governments in managing a country’s social and economic resources.2 Good governance is the exercise of power by various wings of the government that is effective, honest, equitable, transparent and accountable. Human Rights and good governance are inherently linked and for the effective implementation of human rights good

Gruberg, I. & Khan, S. (ed.), Globalisation: The United Nations Development Dialogue : Finance, Trade, Poverty, Peace Building (United Nations University Press, New York, 2000); Orji, E.“Issues on Ethnicity and Governance in Nigeria: A Universal Human Rights Perspective”, Fordham International Law Journal, vol.25 (2001), pp. 430- 82; G.H. Fox & B. R. Roth (ed.) Democratic Governance and International Law (Cambridge University Press, Cambridge, 2000). 2 Udombana, N.J. “ Articulating the Right to Democratic Governance in Africa “, Michigan Journal of International Law, vol. 24(2003), pp. 1209-1287. 3 Background Note, Seminar on Good governance Practices for the Promotion of Human Rights, Jointly organized by the Office of the United Nations High Commissioner for Human Rights and the United Nations Development Programme, HR/SEL/GG/SEM/2004/BP.2, Seoul, 15–16 September 2004, available at, http://www.ohchr.org/english/issues/development/governance/compilation/forside_02.html, visited on 20 July 2006. 4 Gruberg, I & Khan, S.supra note 1. 5 Background Note, supra note 3. 6 Sinha,M.K. Implementation of Basic Human Rights (Manak Publications, New Delhi, 1999). 1

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their obligations and mediate their differences.”12 It described “good governance” as the “competent management of a country’s resources and affairs in a manner that is open, transparent, accountable, equitable and responsive to people’s needs.”13 The Commission on Human Rights (CHR) also adopted an important resolution on the subject of “the Role of Good Governance in the Promotion of Human Rights.”14 The CHR guided by the principles of Universal Declaration of Human Rights (UDHR) as a common standard of achievement of all peoples and all nations applying to every individual and every organ of society, and also by the Vienna Declaration and Programme of Action, which affirmed that all human rights are universal, indivisible, interdependent and interrelated.15 This resolution also recognises that transparent, responsible, accountable and participatory government, responsive to the needs and aspirations of the people, is the foundation on which good governance rests and that such a foundation is a sine qua non for the full realization of human rights, including the right to development.16 The good governance and the building of effective democratic institutions are a continuous process for all Governments, regardless of the level of development of the countries concerned.17

Human rights also include a set of performance standards, which guide public authorities, and against which governments and their functionaries, as well as other relevant actors, can be assessed and held accountable. Wide ratification of the relevant international treaties by States from all regions and cultures affirms the universal nature of human rights.7 Human rights are accorded to individuals and groups in order to enable them to realise their self –worth and dignity, and to organise society in such a way that these goals are effectuated and respected. Today, citizens of a State are well aware of the roles they should play in nation building and of the structures they should give to their societies.8 Indeed, it is difficult to find a single and exhaustive definition of “good governance”, nor is there a delimitation of its scope, that commands universal acceptance. However, the term is being used with great flexibility.9 The good governance has been said at various times to encompass: full respect of human rights, the rule of law, effective participation of people, political pluralism, transparent and accountable institutions, an efficient and effective public sector, legitimacy, access to information and education, political empowerment of people, equity, sustainability, and attitudes and values that foster responsibility, solidarity and tolerance.10 Bad governance is largely regarded as one of the root causes of all evil within our societies.

The resolution emphasised on the universality of the Human Rights and the adoption by the United Nations Millennium Declaration of a commitment to good governance in promoting human rights is further to strengthen the commitment of the international community for good governance.18 The international community has entered in the 21st century with the hope that worst enemy of mankind poverty will be completely eradicated from the world.19 To achieve this goal the General Assembly of the United Nations has adopted the UN Millennium Declaration in September 2000.20

The United Nations Development Programme (UNDP) has defined the word “governance” broadly as “the exercise of economic, political and administrative authority to manage a country’s affairs at all levels.11 It comprises the mechanisms, processes and institutions through which citizens and groups articulate their interests, exercise their legal rights, meet

Sinha, M.K. Basic Documents on Human Rights and Refugee Laws, (Manak Publications, New Delhi, 2000) Udombana, supra note 2. 9 Background Note, supra note 3. 10 Background Note, Supra note 3. 11 United Nations Developmental Programme: Good Governance, available at, http://www.undp.org/governance/mdgs.htm, visited on 21 July 2006. 12 Ibid. 13 Ibid. 14 The Role of Good Governance in the Promotion of Human Rights,The Commission on Human Rights, E/CN.4/RES/2004/70,57th Meeting,21 April 2004, http:/ /www.ohchr.org/english/issues/development/docs/2004_70.doc, visited on 25 July 2006. 15 Para.5 of the Vienna Declaration and Programme of Action, adopted by the World Conference on Human Rights, 25 June1993 General Assembly, A/ CONF.157/23,12 July 1993, available at http://www.unhchr.ch/huridocda/huridoca.nsf/(Symbol )/A.CONF.157.23.En?OpenDocument , visited on 25 July 2006. 16 The Role of Good Governance, Supra note 14. 17 Ibid. 18 Resolution adopted by the General Assembly, 55/2. United Nations Millennium Declaration, adopted as a Vth principles, Human Rights, Democracy and Good Governance, 8 September 2000, http://www.unmillenniumproject.org/index.htm , visited on 21 July 2006. 19 Shepherd, G.W. “The Denial of the Right to Food: Development and Intervention in Africa,” California Western Journal of International Law, vol.15, (1985), pp. 528-41. 20 189 States adopted the UN Millennium Declaration. Report is available on http://www.undp.org, visited on 26 April 2005. 7 8

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actors, media, lobbyists, international donors, multinational corporations, etc. may play a role in decisionmaking or in influencing the decision-making process.28

States agreed to do their best to achieve the goals set in the UN Millennium Declaration by eradicating poverty, promote human dignity and equality and achieve peace, democracy and environmental sustainability. 21 The international community has committed, in the Millennium Development Goals, to cut extreme poverty by half by 2015 and by 2025, extreme poverty can be banished. 22 The UN Millennium Declaration, envisaged a new global partnership to reduce extreme poverty and setting out a series of time-bound targets, all with a deadline to eradicate half of the world poverty by 2015,23 to achieve this goal they adopted 8 Goals 24 as the Millennium Development Goals (MDGs).

The concept of good governance has been further clarified by the work of the CHR on its earlier resolution 2000\64.29 The CHR has identified the key attributes of good governance30 as follows: (1.) Transparency (2.) Responsibility (3.) Accountability (4.) Participation (5.) Responsiveness (to the needs of the people) 2. Essential Aspects of Good Governance There are certain essential aspects for the good governance are as follows:

The CHR resolution also urged upon member states to provide governance responsive to the needs and aspirations of the people in order to achieve the full realisation of human rights to eradicate poverty and to build international cooperation on development. 25 Governance is the process of decision-making and the process by which decisions are implemented, an analysis of governance focuses on the formal and informal actors involved in decision-making and implementing the decisions made and the formal and informal structures that have been set in place to arrive at and implement the decision.26

(1.) Democracy based on Free and Fair Elections; (2.) Independence of Judiciary; (3.) Right to Fair Trial; (4.) Right to Information (5.) Respect for human Rights; (6.) Removal of corruption; (7.) Gender Equality; (8.) Role of Civil Society (9.)Civil War and Ethnic Violence 2.1. Democracy Based on Free and Fair Election The type of political system that a country has is closely related to the standard of human rights its citizens’ enjoy.31 It is widely assumed that human rights and democracy are firmly linked together - that is democracy is the form of government most likely to defend human rights.32 The core idea of democracy is that all citizens’ are entitled to participate in public affairs through participation in governments and the associations of civil society.33 This entitlement should be available to all on terms of equality to all. Control by the citizens over their collective affairs and, equality between the citizens in the exercise of that control are the basic democratic principles.

Government is one of the actors in governance. The other actors involved in governance vary depending on the level of government, in rural areas, for example, other actors may include influential land lords, associations of peasant farmers, local self government, cooperatives, NGOs, research institutes, religious leaders, finance institutions political parties, the military etc. 27 The situation in urban areas is much more complex. At the national level, in addition to the above

Ibid. Ibid. See home page, http://www.unmillenniumproject.org/index.htm, visited on 21 July 2006. 24 The 8 Goals are as follows: Goal 1: Eradicate Extreme Hunger and Poverty, Goal 2 : Achieve Universal Primary Education, Goal 3 : Promote Gender Equality and Empower Women, Goal 4: Reduce Child Mortality, Goal 5 : Improve Maternal Health, Goal 6: Combat HIV/AIDS, Malaria and other Diseases, Goal 7 : Ensure Environmental Sustainability,Goal 8: Develop a Global Partnership for Development, available at http://www.unmillenniumproject.org/goals/index.htm, visited on 21 July 2006. 25 The Role of Good Governance, supra note 14. 26 Gruberg. I & Khan,S (ed.), supra note 1. 27 UNESCAP, What is Good Governance?, available at http://www.unescap.org/huset/gg/governance.htm, visited on 18 July 2006. 28 Ibid. 29 Commission on Human Rights Rresolution 2000/64, 66th meeting 26 April 2000, adopted by a roll-call vote of 50 votes to none, with 2 abstentions, available at http://www.unhchr.ch/huridocda/huridoca.nsf/(Symbol)/E.CN.4.RES.2000.64.En?Opendocument, visited on 18 July 2006. 30 Ibid., para.1. 31 Background Note, supra note 3. 32 Ramcharan, B “The United Nations and Human Rights in the Twenty – First Century”, in G. Alfredsson , et.al. (ed.), International Human Rights Monitoring Mechanisms: Essays in Honour of Jakob Th. Moller, (Martinus Nijhoff, Hague, 2001), p. 7. 33 Norris, P “Stable Democracy and Good Governance in Divided Societies: Do Power Sharing Institutions Work?” at http://ksgnotes1.harvard.edu/research/ wpaper.nsf/d745629e080d1fe88525698900714934/ab69bfceef0365c985256fa8006a1102/$FILE/ISA%20Norris%20Consensus%20democracy.pdf, visited on 21 July 2006. 21 22 23

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Free and fair election is critical for the continuance of a democracy. A nation can only truly be “of the people, by the people and for the people” when proper procedures are followed in administering the way people choose their leaders to govern them.34 Sadly, the history is full of examples where elections were conducted under the control of dictator, who did not allow any opposition parties to contest the election.35 Thus, it becomes more important for the world community to identify the States where dictatorial form of government is in power and convince the head of the state to adopt democratic process for the good governance. The human rights require an inclusive democracy, which moves beyond the necessary but insufficient system of periodic elections and the establishment of separate institutions for the exercise of power.36 It also calls for innovative formal and informal processes and institutions that may help to resolve the classic dilemma: majority rule versus minority rights. 37

governance and respect for human rights are the foundations for political and social stability and economic progress and they are also intrinsic to the goal of human development. 2.1.1 The Human Rights and Democratic Government UN charters and resolutions have been interpreted as helping to provide a common framework of international norms and values that link human rights to development and democratic governance. 40Human rights provide a constitutional framework for all countries to pursue sustainable development because it affords universally acceptable guidelines that transcend national boundaries.41 The appeal to human rights is to have common ground for global governance systems that ensure the means to pursue development freedoms for individuals, groups and nations. From a human rights perspective, the concept of good governance can be linked to principles and rights set out in the various international human rights instruments.42 To begin with Article 21 of the Universal Declaration of Human Rights (UDHR), which recognizes the importance of a participatory government and Article 28 states that everyone is entitled to a social and international order in which the rights and freedoms set forth in the Declaration can be fully realized.43 The two International Covenants on Human Rights contain language that is more specific about the duties and role of governments in securing the respect for and realization of all human rights.44 The UN Charter, the UDHR, International Covenant on Civil and Political Rights (ICCPR) and the International Covenant on Economic, Social and Cultural Rights (ICESCR) offer a normative basis for accountability at varying levels of governance. 45 Well before the Millennium Development Summit in 2000, the Copenhagen Declaration on Social Development and Programme of Action took up the importance of human rights for development in 1995. Many of the principles and goals

The basic rationale of democracy is that elected representatives of the people and public functionaries are entrusted with power, which is a trust reposed in them by the people. That trust has to be discharged for the benefit of the nation and the people. Public functions and statutory powers are to be performed to serve public purpose and national interest, not for personal aggrandizement, nor for extraneous or ulterior considerations. Democracy must play also an instrumental role in promoting good governance, which also means realizing certain societal goals, such as the eradication of human deprivation, the realization and sustainability of fundamental and human rights, the security of life and human liberty, the democratization of, and participation in, the process of governance, and also the market. 38 Regrettably, we noticed that functioning democracies, even those of long-standing, have not been able to sustain good governance, and this has lead to the degeneration of democracy and has compromised its sustainability.39 Democratic

G. A. O’Donnell, “Democracy, Law and Comparative Politics”, available at, http://www.polisci.berkeley.edu/faculty/bio/permanent/Collier,D/journal-comparative/ scid-odonnell.pdf, visited on 21 July 2006. 35 Sinha, supra note 6. 36 Ibid. 37 Ibid. 38 Background Note, supra note 3. 39 UNESCAP, supra note 27. 40 Franck,T “Legitimacy and Democratic Entitlement” in G. H.Fox & B.R.Roth (ed.), supra note 2, pp. 25-48. 41 Marcelli, F.“ The Principle of Democratic Participation : A Key to Pan European Cooperation on Environmental Issues?” author ’s personal copy. 42 Background Note, supra note 3. 43 Ibid. 44 Sinha, supra note 6. 45 Ibid. 34

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(6) show solidarity toward others. The countries agreed to a total of fifty-two commitments falling under these six principles.

enunciated in the Declaration also formed the central theme in the Brussels Programme of Action (BPoA),46 including the commitment to “a political, economic, ethical, and spiritual vision for social development that is based on human dignity, human rights, equality, respect, peace, democracy, mutual responsibility and co-operation, and full respect for the various religious and cultural backgrounds of people”.47 At that time, governments agreed specifically to promote democracy.48 They also undertook to “promote all human rights and fundamental freedoms for all, which are universal, indivisible, interdependent and interrelated, including the right to development as an integral part of fundamental human development and fundamental freedoms for all, including the right to development” commitment.49 The BPoA therefore is seen as integral to the goals for poverty eradication articulated in the Millennium Development Declaration; in fact, Goal 8 of the MDGs, to develop a global partnership for development, has direct relevance for democratic governance. Ten years after the Copenhagen meeting, governments recommitted themselves to these same values, with a renewed focus on rule of law and democracy. The Ulaanbaatar Declaration 50 sets forth six key principles or benchmarks endorsed by the Fifth International Conference of New or Restored Democracies (ICNRD) that is, democratic societies are

The Outcome Document of the 2005 World Millennium Summit once again reaffirmed the commitment of the international community to address the special needs of the poor from developing Countries , which continue to face persistent human development challenges. It has been realised that concerted effort should be made to achieve Millennium Development Goals (MDGs), in particular the goal of halving the proportion of people living in extreme poverty by 2015.51The UDHR, expressed the values of democracy in proclaiming that “the will of the people shall be the basis of the authority of government” (Article 21) and considered it essential that “human rights should be protected by the rule of law” (Preamble). 52 Thus, it is necessary on the part of the state to establish a democratic form of government. In democratic form of government the people are enabled to express and discuss their opinion freely on all matters affecting them. In a democratic society, legislative institutions must exist to check the exercise of executive power and an independent judiciary must exist to safeguard the civil liberties of the people. 2. 2. Independence of Judiciary

(1) just and responsible,

The justice system has been the major recourse of the human rights community in the enforcement of human rights.53 Litigation has been identified as one of the key means of protecting and enforcing the rights of individual. The independence of judiciary is an important requirement for good governance. The establishment and functioning of an independent judiciary for the protection of human rights and other constitutional guarantees are essential for good governance.54 The independence of judiciary is often undermined during

(2) inclusive and participatory, (3) promote and protect the rights and freedoms of all their members, (4) open and transparent, (5) function under agreed rules of law and accountability regardless of the challenges they may face, and

Welch, Gita and Nuru, Zahra Governance for the Future: Democracy and Development in the Least Developed Countries (UN-OHRLSS, 2006), available at http://content.undp.org/go/newsroom/may-2006/good-governance-20060519.en, visited on 19 July 2006., p.37. The Brussels Programme of Action (BPoA) 2001-2010, adopted in June 2001 at the Third UN Conference on LDCs, articulates policies and supportive actions to promote the long-term economic growth and sustainable human development of LDCs.36 It seeks their successful integration into the global economy through partnerships that focus on developing the human and institutional resources needed to raise the quality of life for the 600 million people in the 50 LDCs. 47 Ibid. 48 Ibid. 49 Ibid. 50 The Fifth International Conference of New or Restored Democracies (ICNRD) was held in Ulaanbaatar on 8-12 September 2003 as a forum to share knowledge and experiences in promoting pluralistic democracy and in particular its participatory aspect as the theme of the Conference Democracy, Good Governance and Civil Society specified. The Sixth International Conference of New or Restored Democracies will be held in Doha, Qatar on 13-15 November 2006. Available at, http://www.icnrd5-mongolia.mn/, visited on 18 July 2006. 51 Welch, Gita and Nuru,Zahra supra note 46. 52 Ibid. 53 Sinha, supra note 6. 54 Ibid. 46

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emergency through various ways , for instance, for instance removal of competent judges by unqualified persons and the establishment of special courts to try those who try to defy the authority. Such court functions under direct control of the State government and discharge its duty in more biased manner to legitimise all illegal practices of the State. The tendency to make judiciary a rubber stamp of government is not very uncommon practice in many developing countries.55 Once the State authority proclaims emergency it automatically starts exercising unlimited power. The danger of this unchecked power is that the state may resort to arbitrary methods to silence the people opposing the government.56 This particular situation may even become worst when military government overthrows democratically elected government. The suspension of the writ of habeas corpus, arbitrary arrest , trial conducted not by competent court is common practice during time of emergency. Thus, it is imperative to maintain the independence of judiciary for the protection of human rights. Independence of judiciary would help substantially in preventing the abusive exercise of emergency powers by the executive.

provides that, “everyone is entitled in full equality to a fair and public hearing by an independent trial in the determination of his rights and obligations and of any criminal charge against him.”60 Article 10 regulates the relationship between an individual and the tribunal and expresses the basic right to a fair trial in both civil and criminal proceedings. This right applies to the individual in all cases , whether he or she initiates the proceedings or is the defending party. The ICCPR further elaborates – particularly in its Articles 14 and 15.61 Article 14 of the ICCPR recognises the right to “ a fair trial and public hearing by a competent, independent and impartial tribunal established by law.” Article 14 is the most prominent fair trial provision of the ICCPR and incorporates the content of Articles 10 and 11(1) of the UDHR. Article 14 is paralleled on the regional level by Article 6 of the European Convention on Human Rights, Article 8 of the American Convention on Human Rights and the Article 7 of the African Charter on Human and People’s Rights.62 Every government has the duty to bring to justice those responsible for crimes. However, when people are subjected to unfair trials, justice is not served. When people are tortured or ill-treated by law enforcement officials, when innocent individuals are convicted, or when trials are manifestly unfair, the justice system itself loses credibility.63 If human rights are not upheld in the police station, the detention centre, the court and the prison cell, then the government has failed miserably in its duties and responsibilities towards its citizens. Thus, it is important to protect and promote human rights each State should make right to a fair trial as fundamental rights under their constitution and if necessary, adopt required legislation to fulfil this obligation.64

2.3. Right to Fair Trial The right to fair trial is envisaged under both international as well as regional human rights instruments. 57 It is absolutely true that the right to fair trial is the most fundamental rights of victims of violation of human rights and this right should be protected in all times.58 The right to a fair trial is a basic human right. It is one of the universally applicable principles recognized in the UDHR and still the cornerstone of the international human rights system. The right to fair trial has been reaffirmed and elaborated since 1948 in legally binding treaties such as the ICCPR, and in numerous other international and regional treaties and non-treaty standards, adopted by the UN and by regional intergovernmental bodies.59

2.4. Right to Information Advancement of technology has made world a small village, but unfortunately this development did not reach, yet, to some developing countries because of their strong believe in respecting the official secret act. There is no transparency and accountability at the local

The right to a fair trial is one of the most important rights enshrined in the UDHR. Article 10 of the UDHR

Ibid. Sinha,M.K. “International Human Rights Regime and States of Emergency: Need for Reform” Indian Journal of International Law, vol. 39 (1999), pp. 677-688. Weissbrodt, D.,The Right to a Fair Trial : Articles 8, 10 and 11 of the Universal Declaration of Human Rights, (Martinus Nijhoff, Hague, 2001). 58 Sinha, supra note 6. 59 Weissbrodt, D, supra note, 57. 60 Sinha, supra note 7. 61 Ibid. 62 Weissbrodt, D, supra note, 57. 63 Ibid. 64 Ibid. 55 56 57

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and capacity building in the process of development.67 The UDHR recognises human rights as the foundation of peace, justice and democracy. Human rights are inalienable entitlements; they constitute the ground-rules for human development. The human rights framework reflects the crucial interdependence of economic, social and cultural rights, on the one hand, and civil and political rights, on the other.68 The international community has developed a comprehensive legal framework for the protection and promotion of human rights. The ICESCR 69 and the ICCPR, and its two Optional Protocols together with the UDHR constitute the International Bill of Rights.70 Alongside these, specific conventions were drafted to protect the rights of certain vulnerable groups, such as women and children, and to address certain specific rights, such as the elimination of racial discrimination.71

level where it counts the most. Poor citizens cannot go to the government officials for any information related with the development and any other aspects. Though, the right to information has been recognised as a fundamental human rights in most of the Constitutions of the world. Thus, it is required to urge upon the states to bring out a necessary legislation and make all information available to citizens. Indian Parliament has passed a very revolutionary bill last year, which empowers the citizen to ask for any information from the government officials, the bill is known as Right to Information Act, 2005,65 interestingly, several states had already gone ahead with legislations of their own so that the culture of demanding to know what is going on is gradually taking root. Freedom of information lies at the root of the rights discourse. Failure of the State to provide access to information or State suppression of information can lead to the most egregious forms of human rights violations. The Right to Information (RTI) is fundamental to the realisation of rights as well as effective democracy, which requires informed participation by all.

Under international human rights law, States Parties have specific obligations to (i) respect, (ii) protect and (iii) fulfil the rights contained in the conventions. Failure to perform any one of these three obligations constitutes a violation of such rights.72 The World Conference on Human Rights in 1993 also states that, “while development facilitates the enjoyment of all human rights, the lack of development may not be invoked to justify the abridgement of internationally recognised human rights”.73 It is important to distinguish inability from unwillingness. Any deliberate retrogressive measures require the most careful consideration, and need to be fully justified by reference to the totality of the rights provided for in the treaty concerned and in the context of the full use of the maximum available resources. In General Comment No. 12 of the Committee on Economic, Social and Cultural Rights, on the right to food, the Committee stated “Good governance is essential to the realization of all human rights, including the elimination of poverty and ensuring a satisfactory livelihood for all.”74

2.5. Respect For Human Rights In the past fifty years, the community of nations have produced a series of international and regional instruments both at international as well regional levels. These human rights instruments are designed to promote and protect human rights and fundamental freedoms of individual. Those States, which are parties of these instruments either at regional or universal levels, have an obligation to protect and promote the human rights of its citizens.66 One of the important developments of the past couple of years has been the efforts of the United Nations Development Programme (UNDP) to integrate human rights at one of its activities. The UNDP and other development institutions are according more and more importance to issues of governance

See for whole Right to Information Act 2005, available at http://www.humanrightsinitiative.org/programs/ai/rti/india/national/rti_act_2005.pdf, visited on 24 July 2006. This Act extends to whole India except the State of Jammu and Kashmir. The Act was enacted by the Parliament on 15 June 2005, and the Act came into force on 12 October 200. It includes the right to (i) inspect works, documents, records, (ii) take notes, extracts or certified copies of documents or records, (iii) take certified samples of material, (iv) obtain information in form of printouts, diskettes, floppies, tapes, video cassettes or in any other electronic mode or through printouts 66 Ramcharan,B, supra note, 32. 67 Ibid. 68 Sinha, supra note 6. 69 Sinha, M.K., Enforcement of Economic, Social and Cultural Rights: International and National Perspectives (Manak Publications, New Delhi, 2006). 70 Sinha, supra note 6. 71 Ibid. 72 Sinha, supra note 69. 73 Vienna Declaration, supra note 15. 74 General Comment 12 by Committee on Economic, Social and Cultural Rights on Article 11 (Right to Adequate Food), Substantive Issues Arising in the Implementation of the International Covenant on Economic, Social and Cultural Rights, 20th Session, Geneva, 26 April-14 May 1999, E/C.12/1999/5, 12 May 1999. Para.23, available at http://www.ohchr.org, visited on 25 July 2006. 65

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The entire UN system – including the funds, programmes and specialised agencies – has a responsibility to support State Parties in these efforts, according to Article 2 (1) of the ICESCR “States have to undertake steps, individually and through international assistance and cooperation, to the maximum of their available resources with a view to achieving progressively the full realisation of the rights recognised”. 75 Since human development means expanding people’s choices and enhancing their freedoms, empowering people goes beyond the development of human resources as means to economic growth and generation of income. 76

document on the millennium development goals (MDGs), entitled “The United Nations and the MDGs: a Core Strategy’, “the MDGs have to be situated within the broader norms and standards of the Millennium Declaration”, including those on “human rights, democracy and good governance”. 81 All recent international conferences. , notably the Monterrey Consensus reached at the International Conference on Financing for Development82 and the World Summit on Sustainable Development, have reaffirmed the importance of good governance and human rights to achieve the objectives of development and poverty eradication. 83

Human rights and human development are two sides of the same coin. A human rights-based approach provides both a vision of what development should strive to achieve, and a set of tools and essential references.77 It is based on the values, standards and principles captured in the UN Charter, the UDHR and subsequent legally binding human rights instruments. It attaches importance not only to development outcomes, as traditional approaches do, but also to the development process, as the latter implies the participation of all stakeholders to ensure that their interests and rights are included in the ultimate development outcomes. 78 The relationship between good governance, human rights and sustainable development has been recognised by the international community in a number of declarations and other global conference documents. For example, the Declaration on the Right to Development, which was adopted in 1986,79 proclaims, according to Article 1, that every human person and all peoples “are entitled to participate in, contribute to, and enjoy economic, social, cultural and political development”.80 In the Millennium Declaration world leaders affirmed their commitment to promote democracy and strengthen the rule of law as well as to respect internationally recognized human rights and fundamental freedoms, including the right to development. According to the United Nations strategy

2.6. Corruption Corruption is a major threat to good governance. A State that is riddled with the corrupt practices has less regard for any form of democratic norms. 84Citizens have to struggle for small things and nothing can move unless they grease the palm of concerned officials. International community is well aware of this deeprooted evil practice of corruption in majority of the states in Africa, Asia and Latin American countries. By adopting couple of instruments at international and regional levels show the concern and earnestness of the international community in removal of this practice from the state. The human rights dimensions of the fight against corruption, one of the basic challenges to good governance. Corruption erodes the ability of a nation to reform itself, and to build more open, responsive, credible and legitimate political institutions. Corruption seriously undermines the ability of the State to respect, protect and fulfil human rights, particularly of those most dependant on the State because of their marginalized and vulnerable situation. Thus, the fight against corruption is in many countries at the core of government practices that promote human rights. UN General Assembly in its resolution 85 recognized that there is a need to have an effective international legal instrument against corruption, decided

Ibid., Paras.14-15. Gruberg, I ,& Khan,S., supra note 1. 77 Welch. Gita, and Nuru, Zahra supra note 46 78 Gruberg,I , & Khan, S, note 1. 79 Declaration on the Right to Development Adopted by the General Assembly resolution 41/128 of 4 December 1986, available at http://www.unhchr.ch/html menu3/b/74. htm, visited on 21 July 2006. 80 Ibid. 81 Welch, Gita and Nuru, Zahra supra note 46. 82 International Conference on Financing for Development, adoption of the Monterrey Consensus, A/Conf./198, 1 March 2002, available at http://www.un.org/ esa/ffd/0302finalMonterreyConsensus.pdf, visited on 21 July 2006. 83 Welch, Gita and Nuru, Zahra, supra note 46. 84 Alam, A, “Crisis of Governance : Need for Political Reforms” in A.Alam (ed.) Crisis of Governance (Raj Publications, Delhi, 2003), pp. 9-45. 85 UNGA Res. 55/61 of 4 December 2000, available at http://www.unodc.org/pdf/crime/a_res_55/res5561e.pdf, visited on 25 July 2006. 75 76

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to establish an ad hoc committee for the negotiation of such an instrument in Vienna at the headquarters of the Centre for International Crime Prevention, Office for Drug Control and Crime Prevention. The text of the United Nations Convention against Corruption was negotiated during seven sessions of the Ad Hoc Committee for the Negotiation of the Convention against Corruption, held between 21 January 2002 and 1 October 2003.The approved United Nations Convention Against Corruption (UN Convention Against Corruption) by the Ad Hoc Committee was adopted by the General Assembly by its resolution.86 The UN Convention on Corruption has already come into force in 2005.87

enabling universal access to health care. The third MDG is to promote gender equality and empower women addresses gender equality by targeting the elimination of gender disparities in primary and secondary education. It also targets literacy rates, the share of women in non-agricultural jobs, and the proportion of seats women hold in national parliaments. Despite increased awareness that gender equality is a critical factor in economic growth as well as poverty reduction, gender inequalities still prevail in many countries. Gender inequality is evidenced by disparities in access to education and basic health services, women’s lack of independent rights to own land, manage property, or conduct business, and women’s under-representation at all government levels.93

Corruption undermines democratic institutions, retards economic development and contributes to government instability. 88Corruption attacks the foundation of democratic institutions by distorting electoral processes, perverting the rule of law, and creating bureaucratic quagmires whose only reason for existence is the soliciting of bribes. 89 Economic development is stunted because outside direct investment is discouraged and small businesses within the country often find it impossible to overcome the “start-up costs” required because of corruption.90

2.8. Role of Civil Society The term civil society refers broadly to organizations and associations of people, formed for social or political purposes, that are not created or mandated by governments. Civil society broadly includes, non-governmental organizations, trade unions, cooperatives, churches, grassroots organizations and business associations.94 These groups are important for their role in articulating and advocating for popular concerns. This advocacy function gives voice to a variety of interests and perspectives that governments and decision makers may otherwise not hear. It is increasingly accepted fact that real progress in tackling development deficits can only be made by building the institutions for good governance and by ensuring genuine civil society participation. In many countries, and even in those countries deemed to be “good reformers”, governments are often extremely nervous of or even hostile to the development of civil society. Democratic governance requires the existence of constant and efficient linkages among governments and all members of society. Civil society is distinct from society in general since it refers to people organizing and acting together in the public sphere to attain collective goals, express shared ideas and views, exchange information, and improve the functioning of

2.7. Gender Equality No Society can progress where gender inequality persists. Numerous studies and the ground reality have shown that promoting equality between women and men helps a state grow faster, accelerate poverty reduction and enhances the dignity and well being of men, women and children.91 Unfortunately, gender inequalities still prevalent in many of developing countries, as evidence by such indicators as high maternal mortality rate, disparities in education, basic health services and scanty representation of women in the political process of a state.92 Gender issues are highly relevant to achieving all of the Millennium Development Goals (MDGs), be it protecting the environment, achieving sustainable development or

UNGA Res. 58/4 of 31 October 2003, available at http://www.unodc.org/unodc/crime_convention_corruption.html, visited on 25 July 2006. The UN Convention came into force on 14 December 2005 after getting required 30 ratification, in accordance with article 68 (1) which reads as follows: “1. This Convention shall enter into force on the ninetieth day after the date of deposit of the thirtieth instrument of ratification, acceptance, approval or accession, available at http://www.unodc.org/unodc/en/corruption.html, visited on 24 July 2006. 88 Corruption, available at http://www.unodc.org/unodc/en/corruption.html, visited on 24 July 2006. 89 Ibid. 90 Ibid. 91 Welch, Gita, and Nuru, Zahra, supra note 46. 92 Olasfsdottir, O.T., “Equality Between Women and Men”, in B. Ramcharan, supra note, 32, pp. 608-615. 93 Tomasevski, K, “Men and Women, Sex and Gender”, in B. Ramcharan, Supra note, 26, pp. 429-440. 94 Phillips, A, “ The Role of International Non-Governmental Organisations in Promoting Minority Rights Monitoring” in Ramcharan, B, supra note, 32, pp. 897-906. 86 87

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state institutions and make them more accountable, among many other functions.95 Civil society provides a space for state institutions and members of society to consult with each other, interact, and exchange views and information on public matters. It also creates institutional spaces for the active participation of minorities and vulnerable groups in decision-making processes and for increasing political representation of the views and interests of such groups in state institutions.96 It is important to emphasize that civil society is not a homogenous group; it encompasses a broad range of formal and informal organizations, associations and social movements. Community-based organizations, NGOs, charities, voluntary organizations and trade unions are all part of civil society. This intrinsic diversity in origin and ideas is one of civil society’s main contributions to democratic governance. Contributions from civil society vary across countries depending on the development stage of the civil society organizations and individual countries’ needs and openness to their involvement. Civil society in many countries has been successful in helping enhance civic participation in democratic governance. In many instances, civil society has created awareness about participating in elections, raised issues for election manifestoes, and initiated debates and discussions on issues of public concerns. It has also played a significant role in voter education programmes, particularly among minorities, young and first-time voters, women and indigenous groups.97 In countries with weak governance, civil society is frequently equated with political opposition. The United Nations, in many of its General Assembly resolutions and conventions, acknowledges the role of civil society in the promotion of human development, environmental and human rights protection, democracy and good governance. The Millennium Development Goals are very clear in this regard. Successive human development reports by the United Nations Development Programme acknowledge the critical role of civil society.98

accountable to their constituencies. Civil society promotes state accountability in many cases by empowering and making the State’s checks and balances work efficiently.99 In other instances, where government mechanisms of accountability do not exist, civil society can exert pressure to create them in the first place. Civil society in this sense is not an adversary of the State, but instead serves to encourage it to improve and maintain its democratic nature.100 By exposing abuses of power and government wrongdoings, increasing expectations of effective performance and creating political pressure, civil society can push state mechanisms to target corrupt, inefficient and unaccountable practices 2.9. Ethnic Conflict and Civil Wars Ethnic conflict and civil wars are the most pervasive forms of armed conflict in the world. In the 1990s, ethnic conflict and civil wars raged in dozens of countries, killing an estimated six million people. These conflicts usually involved neighbouring states, often undermining regional stability and respect for international law and organizations. Some conflicts engaged the interest of distant international powers. For these reasons, ethnic conflict and civil wars are major international security problems. Ethnic conflict and civil wars have continued to slow down the pace of development and realization of good governance in number of countries of the world especially in Africa. The nations’ wealth is most times spent in quelling one uprising or another. In this type of situation, human rights issues are not properly addressed and a lot of abuses are recorded. Those countries emerging from conflict situations face the immediate task of establishing law and order in the shortest time. These states have to adopt electoral and procedural elements that would help direct people’s energies to consolidating peace. 3. Conclusion The protection and promotion of Human rights need a conducive and enabling environment, in particular appropriate regulations, institutions and procedures framing the action of the State. Good governance policies should aim to empower individuals to live with dignity and freedom. Good governance and

One of the most important functions of civil society is to provide checks and balances to government power. In this context, civil society serves as the watchdog of democratic institutions, helping ensure that they are

Welch, Gita and Nuru, Zahra supra note 46. Ibid. 97 Ibid. 98 Ibid. 99 Phillips, A, supra note , 94. 100 Ibid. 95 96

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rights. Proper functioning of the rule of law, it is essential to have a strong legal framework, under a constitution, that upholds human rights and that provides for effective protection, implementation and redress in key areas at the domestic level, that relate to all human rights, be they civil, cultural, economic, political or social rights. The rule of law concerns itself with the substantive and the procedural, as well as with the quality, content and objectives of laws, processes, institutions and practices. States play a very important role in the promotion and protection of human rights. As the principal “duty-bearers”, State is required under legally binding human rights instruments to adopt a range of measures, including legislative, economic, social and cultural measures, to respect, protect and fulfil all human rights. The interplay between good governance and human rights is marked by the value added that governance provides to human rights, and vice versa.

human rights are mutually linked and complementary. Good governance cannot be achieved in separation from human rights. The two concepts reinforce each other and many of their core principles are common. Popular participation, accountability, transparency, and State-responsibility underline the human rights approach as well as underpin the good governance framework as defined by the Commission on Human Rights. Human rights empower people, help them to assume their roles as community members, provide the legal framework for people’s participation in public affairs and in claiming their rights. Systems of governance should be expressly concerned about their ability to respect, protect and fulfil civil, economic, political and social rights. The exercise of good governance may well result in economic growth and development, as the experiences of many developing countries can attest. The rule of law is indispensable for the exercise of government in a way that promotes and protects human

"Be moral. Be brave. Be a heart-whole man-strictly moral, brave unto desperation. Don't bother your head with religious theories. Cowards only sin, brave men never, no, not even in mind." - Swami Vivekananda (V.3)

"I consider that the great national sin is the neglect of the masses, and that is one of the causes of our downfall. No amount of politics would be of any avail until the masses in India are once more well educated, well fed, and well cared for. They pay for our education, they build our temples, but in return they get kicks. They are practically our slaves. If we want to regenerate India, we must work for them." - Swami Vivekananda (V.222-23)

"The difference between God and the devil is in nothing except in unselfishness and selfishness. The devil knows as much as God, is as powerful as God; only he has no holiness - that makes him a devil. Apply the same idea to the modern world: excess of knowledge and power, without holiness, makes human beings devils." - Swami Vivekananda (V.425)

"The work is nothing without the ideal, and will be fruitless if divorced from its inspiring force.” – Yogi Arvind

"One of the greatest lessons I have learnt in my life is to pay as much attention to the means of work as to its end. ...I have been always learning great lessons from that all the secret of success is there: to pay as much attention to the means as to the end." - Swami Vivekananda (II.1)

"Learn obedience first. Among these Western nations, which such a high spirit of independence, the spirit of obedience is equally strong. We are all of us self-important, which never produces any work. Great enterprise, boundless courage, tremendous energy, and, above all, perfect obedience - these are the only traits that lead to individual and national regeneration. These traits are altogether lacking in us. - Swami Vivekananda (VI.349)

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Review of Corporate Governance Models: A Conceptual Perspective Dr. Varadraj Bapat, Prof. Mehul Raithatha and Ashish Bhave Corporate Governance is the overall control of activities in a corporation. It is concerned with the formulation of long-term objectives and plans and the proper management structure (organization, systems and people) to achieve them. The paper aims to study various models and practices of corporate governance that are internationally followed in different cultures. USAnglo model which has been market oriented became popular in 1990’s however in 2000s due frauds viz. Paramalt, Enron, Worldcom, Satyam followed by recession, the validity of the model is being widely questioned. In this background, academicians and practitioners are exploring other approaches to corporate governance. The present study analyses different models that are prevailing in various cultures viz. China, Japan, Europe, India. An attempt has been made to provide cross cultural comparison of corporate governance practices.

1. Introduction

cultures, and systems that engender the successful operation of the organizations.

Corporate Governance is the overall control of activities in a corporation. It is concerned with the formulation of long-term objectives and plans and the proper management structure (organization, systems and people) to achieve them. At the same time, it entails making sure that the structure functions to maintain the corporation’s integrity and responsibility to its various constituents. The structure to ensure corporate governance includes the board of directors, top management, shareholders, creditors and others. Role of each of these stakeholders is crucial in guaranteeing responsible corporate performance.

Corporate Governance is about promoting corporate fairness, transparency and accountability. Corporate Governance is more a way of business life than a mere legal compulsion. There is nothing laudable about complying with conditions/practices, which the companies are forced to adopt through the process of legal prescription. Corporate governance includes moral values and ethics, and these concepts are largely defined by the cultural, philosophy and Dharma. Concepts of equity, fairness and stewardship have deep moorings.

Corporate governance is the acceptance by management of the inalienable rights of shareholders as the true owners of the corporation and of their own role as trustees on behalf of the shareholders. It is about commitment to values, about ethical business conduct and about making a distinction between personal and corporate funds in the management of a company. The term governance originally meant to be a ‘normative’ framework for exercise of power and acceptance of accountability thereof in the running of kingdoms, regions and towns. However, over the years it has found significant relevance in the corporate world on account of growing number and size of corporations, the widening base of their shareholders, increasing linkages with the physical environment, and overall impact on the society’s well-being. Governance is the process whereby people in power make decisions that create, destroy or maintain social systems, structures and processes. In its narrowest sense, the term may describe the formal system of accountability of senior management to the shareholders. At its most expansive, the term is stretched to include the entire network of formal and informal relations involving the corporate sector and their consequences for society in general. Corporate Governance includes the structure, process, Management Guru: Journal of Management Research

Ancient Indian literature has laid down principals for corporate governance. The lessons from Arthashastra (Kautilya 4th Century BC) can be integrated into the modern context of corporate management towards achieving the ultimate aim of corporate governance, which is to provide value to shareholders and stakeholders. Public interest in corporate governance is nothing new. It dates back to 1970 when in the wake of the establishment, maintenance and review of internal control was passed in the trade way in the Trade- way commission was formed following the saving and loan crisis. In 1990 the Cadbury committee code of best practices in the U.K., the combined code of London Stock Exchange, the Blue ribbon committee of U.S., the OECD Code of 1998 and the joint efforts of World Bank and the OECD to develop benchmarks in corporate governance have kept public interest kindling. Since the late 1970’s, corporate governance has been the subject of significant debate in the U.S. and around the globe. Bold, broad efforts to reform corporate governance have been driven, in part, by the needs and desires of shareowners to exercise their rights of corporate ownership and to increase the value

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Jensen (1989) in his study observed that companies having outside directors with little or no equity stake in the company are proven not effective in terms of monitoring and disciplining the manager. Bradbury(1990) pointed out that by appointing an audit committee, the companies impose costs unevenly if differences exist between companies in the costs and benefits of monitoring packages, transfer resources from existing monitoring activities on the assumption that monitoring expenditure is limited and prevent from signaling information by the choice of an audit committee as a monitoring mechanism.

of their shares and, therefore, wealth. Over the past three decades, corporate directors’ duties have expanded greatly beyond their traditional legal responsibility of duty of loyalty to the corporation and its shareowners. In the first half of the 1990s, the issue of corporate governance in the U.S. received considerable press attention due to the wave of CEO dismissals (e.g.: IBM, Kodak, Honeywell) by their boards. The California Public Employees’ Retirement System (CalPERS) led a wave of institutional shareholder activism (something only very rarely seen before), as a way of ensuring that corporate value would not be destroyed by the now traditionally cozy relationships between the CEO and the board of directors (e.g., by the unrestrained issuance of stock options, not infrequently back dated). In 1997, the East Asian Financial Crisis saw the economies of Thailand, Indonesia, South Korea, Malaysia and The Philippines severely affected by the exit of foreign capital after property assets collapsed. The lack of corporate governance mechanisms in these countries highlighted the weaknesses of the institutions in their economies.

Redikar and Seth (1995) were of the view that firm’s owners should not expect any single mechanism to govern the company effectively across time. It is through the proper use of several mechanisms that the owners are able to govern the company in ways that maximize strategic comptitiveness and increase the financial value of their firm. Beasley (1996) in his empirical study examined the link between financial statement fraud and board of director composition. He found that a higher proportion of outside directors on the board reduced the likelihood of fraud. The results support the view that boards with more outside directors provide more effective corporate governance.

In the early 2000s, the massive bankruptcies (and criminal malfeasance) of Enron and Worldcom, as well as lesser corporate debacles, such as Adelphia Communications, AOL, Arthur Andersen, Global Crossing, Tyco, led to increased shareholder and governmental interest in corporate governance.

In the new environmental context, corporate governance is no longer a luxury but a necessity. There is a gap between the percept and practice of Corporate Governance; examples of good corporate governance are few. Feudal mindset, manifold regulations, lack of concern for society, a sense of insecurity and greed are some of the reasons for this.

Delorme (1996) suggested that corporate governance can be improved by adoption of strategic planning process, communication policy and integration of company’s internal information, management system and identification of risks including those arising out of the use of derivative instruments. Cadbury (1998) in his work emphasized that there is an increasing need among growing companies to tap international capital markets for funds. As they compete to attract investment and raise capital world wide, investors demand high standard of governance. Hence corporate governance is emerging an important issue in the international business.

Jenson and Fama (1983) in their study found that in modern corporations , especially those in United States and the United Kingdom, primary objective of corporate governance is to ensure that the interests of top-level managers are aligned with shareholers’ interests. Corporate governance involves oversight in areas where owners, managers and board of directors may have conflict of interests. These areas include the selection of directors, supervision of Chief Executive Officer and director pay, and the Corporation’s overall structure and strategic direction.

CIMA (2000) in a survey of European corporate governance practices acknowledged that Continental model (with two boards- supervisory and management) seems to prioritize the company’s role in society over the generation of increased returns for shareholders, when compared with the Anglo –American (unitary board) model. Barua(2002) in his study that there is no model that would guarantee ethical corporate behaviour . He stated that not only improvements in disclosure norms, changing of the composition of Boards by including non-executive directors and setting up of audit

2. Review of literature

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maintains longer term and stable relationship among themselves. In the European countries where this insider model is extant corporate sector depends on banks as a source of fiancé and the corporate entities have quite high levels of debt equity ratios.

committees would lead to increase in the level of corporate governance but as long as social atmosphere is in which the Indian corporate sector operates remains corrupt, there is little hope for significant improvement in the behaviour of corporate sector in India. Till then ethics in business and good corporate governance must remain the dream of an inveterate optimist.

5 Corporate Governance Practices In Various Countries- An Overview

Khanna (2007) found that domestic financial institutions in India are ineffective monitors whereas association with foreign institutional investment provides significant monitoring benefits. Firm performance is positively correlated with the presence of foreign institutional ownership and negatively correlated with the presence of domestic institutional ownership. He also concluded that more transparent groups are more likely to attract investments.

5.1 ANGLO-US: The following important features are primarily prevalent in English speaking countries. 1

a. The chief executive plays an important role.

2

b. Capital markets are quite active.

3

c. Short-term action pervasive.

3. Objectives of the Study

4

The paper aims to study various models and practices of corporate governance that are followed internationally in various cultures.

d. There exists a fairly active marker for corporate to takeover and control.

5

e. If the company is poorly managed it is exposed to takeover threats.

4. Models of Corporate Governance

5.2 Japanese German: The following important features are found in Japan and German.

4.1 Outsider Model: Outsider model is prevailing predominantly in UK and USA in which control and ownership are distinct and separate. Since equity ownership is widely dispersed among a large number of institutional holders and small investors, control vests with professional managers. The model is also referred to as principal-agent model where the shareholders, the principals entrust the management of the firm to managers, the agents. In actual practice with the growth of the firm the gulf between shareholders and managers has widened and become distant giving rise to the agency problem, ensuring that managers function in the interests of the shareholders.

Capital markets are not quite as active.

b.

Long-term goals are pursued in preference to short-term goals.

c.

Stakeholders’ primacy is foundation of good corporate governance practice.

d.

The scope to mergers and market based takeovers is somewhat limited.

e.

it places restrictions on non-bank finance

5.3 China: In the case of China, the focus of industrial policy reform is as deregulating the state owned enterprises. Partly privatised companies are trading in the stock market. And the standards of corporate governance have started emerging. In China, we have evidence of the practice of two-tier boards. It’s truly an insider dominated system. Also primarily, it is the domination of the state and the partly be the enterprises. There is an issue of minority shareholders still being unprotected.

4.2 Insider Model: The insider model has two variants, the European and East Asian. In the European model a relatively small compact group of shareholders exercise control over corporation. On the other hand, the East Asian model of corporate governance, the founding family generally holds the controlling shares either directly or through holding companies’. In all East Asian countries control is enhanced through pyramid structures and cross holding among firms. In the European insider model the controlling shareholders are backed by complex shareholders are backed by complex shareholders agreements. The controlling group Management Guru: Journal of Management Research

a.

5.4 Other Asian economies: The literature covers such issues of corporate governance as: agency problems arising from certain ownership structures, conventional corporate governance mechanisms, transparency and accountability issues, crony capitalism

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(under government interference and risky financing); institutional environments; influence of ownership structures on corporate governance of family business; and the quality of interaction between public and corporate governance ; among others. In the Asian case, family ownership is prevalent. There is a practice of cross shareholding. There is concentration of family ownership. However, among the Asia nations, the practice of cross-holding varies. The weak propriety right system explains the evolution of concentration of family holdings. Another feature of the Asian Corporate governance practices is that; hostile takeovers are rare. 6. Corporate Governance in India – 6.1 Ancient Indian Principles In the third century B.C. Kautilya (Chanakya) wrote his celebrated treatise on Statecraft – Arthashastra or Law of Economics. History records Pataliputra, the Capital of Mauryan Empire as a ciy “astonishingly well organized and administered according to best principles of Governance.”

2.

Atmana Vindyate Viryam: Strength and inspiration for excelling in work comes from the Divine, God within, through prayer, spiritual readings and unselfish work.

3.

Tesham sukhm tesham shanti shaswati: Infinite happiness and infinite peace come to them who see the Divine in all beings.

4.

Yogah karmashu Kaushalam, Samatvam yoga uchyate: He who works with calm and even mind achieves the most.

5.

Yadishi bhavana yasya siddhi bhavati tadrishi: As we think, so we succeed, so we become. Attention to means ensures the end.

6.

Parasparam bhavayantah shreyah param bhavapsyathah: By mutual cooperation, respect and fellow feeling, all of us enjoy the highest good both material and spiritual.

Basic values of Indian principals of governance are:

Kautilya further elaborates on the fourfold dharmas (duties) of a King as: -

1.

Human being has immense potential, energy and talents for perfection.

1. 2. 3. 4.

2.

Holistic approach indicating unity between the individual self and the universe.

3.

Subtle, intangible subject and gross tangible objects are equally important. One must develop one’s Third Eye, Jnana Chaksu, the Eye of Wisdom, Vision, Insight and Foresight. Inner resources are much more powerful than outer resources. Divine virtues are inner resources. Capital, materials and plant & machinery are outer resources.

4.

Co-operation is a powerful instrument for team work and success in any enterprise involving collective work.

Raksha – Protection Vriddhi – Enhancement Palana – Maintenance Yogakshema – Safeguard

The substitution of a state with the Company, the King with the CEO or the Board of a Company and the Subjects with the Shareholders, brings out the spirit of Corporate Governance. The four principles of Corporate Governance can be elaborated as under: 1.

Protecting shareholders wealth

2.

Enhancing the wealth through proper utilization of assets.

3.

Maintenance of that wealth and not frittering away in unconnected and non profitable ventures or through expropriation, and above all

4.

Safeguarding the interests of the shareholders.

6.2 An Overview of Legal Requirements The developments in India with regard to corporate governance were various committees first among such endeavors was the CII Code for Desirable Corporate Governance developed by a committee chaired by Rahul Bajaj. The committee was formed in 1996 and submitted its code in April 1998. Later SEBI constituted two committees to look into the issue of corporate governance- first chaired by Kumar Mangalam Birla that submitted its report in early 2000 and the second by Narayan Murthy three years later.

The salient ideas and thoughts on principals of governance as revealed by our ancient scriptures are: 1.

Atmano Mokshartham, Jagat hitaya cha: All work is an opportunity for doing good to the world and thus gaining materially and spiritually in our lives

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The recommendations of the reports of these committees are as follows:

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BOD should have combinations of executive as well as non-executive directors with not less than fifty percent of the BOD comprising of nonexecutive directors.

When chairman of the Board is a non executive director, at least one-third of the board should comprise of independent directors and in case he is an executive director, at least half of the board should comprise of independent directors. [Independent director means non- executive who is not related to company in any manner and through any transaction.]

A director shall not be a member in more than 10 committees or act as Chairman in more than 5 committees.

The board should lay down Code of Conduct for all board members and senior management who in turn shall affirm their compliance in return on annual basis.

A qualified and independent audit committee shall be set up with minimum 3 directors as members. Two-thirds of the members shall be independent directors. Chairman of the committee shall be independent directors and he should be present in AGM. Committee should meet 4 times in a year with minimum 2 independent directors to be present.

• •

8. Bibligraphy A Suryanarayan, “Corporate Governance The current crisis and the way out”, ICFAI University press, 2005.

Any type of compensation paid to independent directors shall be fixed by BOD and would require prior approval of shareholders.

competitiveness, economic/financial stability, growth, job creation, poverty alleviation and higher living standards. Different models and practices are followed in different cultures. There is a need to study validity and impact of these models. Anglo-US model has been market oriented whereas Japanese German model is giving primacy to shareholders. In China Government domination is found whereas in other Asian countries family orientation is also seen. Ancient Indian model relies on Trusteeship principal.

Anthony Williums, “Corporate Governance Who Will Guard the Gardians?” Jaico Publishing House, 2007. Bae, K. H., J. K. Kang, and J. M. Kim. 2002. “Tunneling or Value Addition? Evidence from Mergers by Korean Business Groups.” Journal of Finance 57 (6): 2695–740. Balakrishnan M, J M. Shaikh (2007), “Lessons in corporate governance from Kautilya’s Arthashastra in ancient India”, World Review of Entrepreneurship, Management and Sustainable Development 3 (1): Barman, H.: Indian Ethos & Values in Modern Management, http://himadri.cmsdu.org/documents/ IndianEthos.pdf Berglof, E. and S. Claessens, 2004. Corporate Governance and Enforcement, Working Paper, University of Amsterdam.

A statement of transactions in the nature of business with related parties should be placed before audit committee.

Bertrand, M., P. Mehta, and S. Mullainathan. 2002. “Ferreting out Tunneling: An Application to Indian Business Groups.” Quarterly Journal of Economics 117(1):121–48.

Management Discussion and Analysis Report shall be part of the Annual Report to the shareholder and shall include industry structure, risks and concerns, internal control system etc.

C V Baxi, “Corporate Governance Critical Issues”, Excel Books, 2007.

Shareholders should be informed in detail about appointments and reappointments of directors.

Chhibber, P.K., and S.K. Majumdar (1999), Foreign Ownership and Profitability: Property Rights, Control, and the Performance of Firms in Indian Industry, Journal of Law and Economics, 42, 209238.

A detailed compliance report on corporate governance shall be separately rovided in the Annual reports of company.

7. Conclusion

Claessens, S. and J.P.H. Fan, 2003. Corporate Governance in Asia: A Survey, Working Paper, University of Amsterdam.

Regulators need to understand the role good corporate governance plays in promoting national Management Guru: Journal of Management Research

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Levine, R. 2003. The Corporate Governance of Banks: A Concise Discussion of Concepts and Evidence, Global Corporate Governance Forum, World Bank.

Claessens, S., 2003. Corporate Governance and Development, Global Corporate Governance Forum, World Bank, Washington D.C. Claessens, Stijn, Simeon Djankov, Joseph P. H. Fan, and Larry H. P. Lang, 2002.

Morck, R., A. Shleifer, and R. Vishny (1988), Management Ownership and Market Valuation: An Empirical Analysis, Journal of Financial Economics, 20, 293-315.

Das, A. and S. Ghosh, 2004. Corporate Governance in Banking System: An Empirical Investigation, Economic and Political Weekly, March 20, 2004, pp. 1263-1266.

N. Shivapriya, “On Wings of Social Entrepreneurship”, Economics Times, Nov.9 2007.

Disentangling the Incentive and Entrenchment Effects of Large Shareholdings, Journal of Finance 57 (6): 2741–71.

Prakash Pandya & R. Balakrishnan, “Compliance Guide to Corporate Governance”, Taxmann, 2006

Dyck, A. and L. Zingales (2002), Private Benefits of Control: An International Comparison, CEPR Discussion Paper No. 3177.

Reddy, Y.V., 2002. Public sector banks and the governance challenge - the Indian experience, BIS Review 25/2002, Bank for International Settlements, Basle.

Gibson, M.S. (forthcoming), Is Corporate Governance Ineffective in Emerging Markets?, Journal of Financial and Quantitative Analysis.

Sarkar, J. and S. Sarkar (2000), Large Shareholder Activism in Corporate Governance in Developing Countries: Evidence from India, International Review of Finance, 1, 161-194.

Goswami, Omkar, 2002, “Corporate Governance in India,” Taking Action Against Corruption in Asia and the Pacific (Manila: Asian Development Bank), Chapter 9.

Swami (Dr.) Parthasarathy, “Corporate Governance- Principles, Mechanisms & Practices” Biztantra Publishers, 2007.

Gregory, Holly J., 2000, International Comparison of Corporate Governance: Guidelines and Codes of Best Practice in Developing and Emerging Markets, Weil, Gotshal & Manges LLP.

Tian, G.L.H. (2001), State Shareholding and the Value of Chinese Firms, Working Paper, London Business School.

Gregory, Holly J., 2001, International Comparison of Corporate Governance: Guidelines and Codes of Best Practice in Developed Markets, Weil, Gotshal & Manges LLP.

Topalova, Petia, 2004. “Overview of the Indian Corporate Sector: 1989-2002.” IMF Working Paper No. 04/64.

H.R. Machiraju, “Corporate Governance”, Himalaya Publishing House, 2004.

U.C. Mathur, “Corporate Governance and Business Ethics”, MacMillan India Ltd., 2005.

Jensen, M.C., and W.H. Meckling (1976), Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure, Journal of Financial Economics, 3, 305-360.

World Bank, 2004. Report on the Observance of Standards and Codes (ROSC), Corporate Governance Country Assessment : India, ROSC, World Bank-IMF, Washington DC.

Johnson, S., P. Boone, A. Breach, and E. Friedman 2000. Corporate Governance in the Asian Financial Crisis, Journal of Financial Economics, 141-186.

Yeh, Y.H., T.S. Lee, and T. Woidtke (2001), Family Control and Corporate governance: Evidence from Taiwan, International Review of Finance, 2, 21-48.

La Porta, R., F. Lopez-de-Silanes, A. Shleifer, and R. Vishny 1997. Legal Determinants of External Finance, Journal of Finance, 52, 1131-1150.

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Workforce diversity at IBM: ‘Shades of Blue’ Program Prof. Syed Mubhashar Hasan BBA Co-ordinator Sydenham College of Commerce & Economics “B” Road, Churchgate, Mumbai- 400020 Mob: 9819967662 Office; 022-22813477

As we enter the 21st century, workforce diversity has become an essential business concern. In the socalled information age, the greatest assets of most companies are now on two feet (or a set of wheels). Undeniably, there is a talent war raging. No company can afford to unnecessarily restrict its ability to attract and retain the very best employees available. Generally speaking, the term “Workforce Diversity” refers to policies and practices that seek to include people within a workforce who are considered to be, in some way, different from those in the prevailing constituency. In this context, here is a quick overview of seven predominant factors that motivate companies, large and small, to diversify their workforces.

Diversity leaders also can learn from the leadership of Tom Watson Jr. When it involved IBM, he also sought to live by his values as he led the business. In his book” A Business and Its Beliefs”, Watson said, “If an organization is to meet the challenges of a changing world, it must be prepared to change everything about itself except its basic beliefs as it moves through corporate life. The only sacred cow in an organization should baits basic philosophy of doing business.” The cornerstone in the partnership between senior line management and diversity leadership must be their passion about the people working for their company and their customers. Leaders must help all people involved with their business understand that workforce diversity can be the bridge between the workplace and the marketplace. Passion is contagious, and when combined with leadership, the equation is very effective. To achieve this convergence of passions, the most important quality for a diversity leader is the ability to motivate others to be part of the leadership on this subject, and see it as part of their personal day-to-day performance. A diversity leader must be able to draw others into the debate and be the catalyst that can convince others that helping to change the content and character of the workplace makes the team stronger and a better performer in the marketplace.

Workforce diversity cannot be delegated; it must be a partnership. Although the HR team plays the key staff role, total delegation from the top, without active involvement, is a recipe for failure. To be successful, global companies must continue to look towards the future, and CEOs, senior line and HR management, and diversity leaders play a key role in that process. If we are to address the complex issues of the twenty-first century, such as the continuing core issues of race and gender, the growing concern over child- and eldercare, and the emerging topics of multiculturalism, tolerance of religious practices, and the full inclusion of people with disabilities in the workplace, then diversity professionals must lead, because businesses cannot get there by themselves.

The IBM diversity: “Shades Of blue” IBM is committed to building a workforce as broad and diversified as the customer base it serves in 165 countries. Reflective of this customer base, we have a broad definition of diversity. In addition to race, gender, and physical disabilities, it includes human differences such as culture, lifestyle, age, religion, economic status, sexual orientation, gender identity and expression, marital status, thought, and geography. With this in mind the “shades of blue” was conceptualised to have something standardised, which could help managers engage in cross-cultural business interactions while managing cross-cultural teams.

A Heritage of Leadership and Diversity There’s a great deal of debate about the qualities needed for a successful diversity executive. “What attributes must a diversity executive has in order to be effective in corporations today?” and “How can a diversity executive work in the corporate boardroom but stay in touch with the various constituency groups and their needs and still remain credible and effective?” are questions asked by experts and executives alike.

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This web-based tool gives valuable insight to how to successfully interact with the people from different cultures. The key features include quick access to continually updated country specific knowledge and networking tools. These help to modify an IBMers’ approach to be immediately effective in different cultural contexts.

In 2007, IBM introduced a new version of its Cultural Intelligence education, Shades of Blue. This blended learning solutions and provided managers and employees with awareness, knowledge and skill readiness to work effectively across cultural differences and within a multicultural environment. Participants understand cultural competence and its importance to the environment today through exploring key cultural differences on national, functional, and interpersonal levels. Participants were also able to explore real-life challenges and opportunities to improve performance and bridge cultural gaps enabling employees to work successfully across cultures and across borders.

The tool completely profiles the individual travelling to the host country on what the people in that country expect from him in terms of behaviour, grooming, dressing, regulations, etc. All employees at IBM participate in the ‘Shades of Blue’ program in some point in their career. There are two versions – one for employees and one for mangers. It also embodies four steps. The first step is training or awareness knowing who you are. Second is exploring and understanding the cultural gaps and the social distances. Third is identifying and finally, brining all of it together.

The challenges of multiculturalism have significantly changed the way of businesses deal with fundamental differences in doing business internationally. To build cultural competence, IBM’s ‘shades of blue ‘program engages the individual in continuous learning life cycle. When an organisation is present internationally and also engages in business that involves global customers, it’s bound to have employees travel across continents to cater customers and clients’ needs.IBM understands the needs of the clients and customers alike, and to help employees travelling to different parts of the world avoid any cultural gaps, developed the program ‘shades of blue’-a workshopbased tutorial. This tutorial is designed for employees travelling for short period of time and also longer visits ranging six months and over.

HR – owner, designer an deployer: HR at IBM has an important role to play in “Shades of Blue”. HR at IBM functions in two groups. One that handles hiring and performance management, and another called the HR Learning, is responsible for the program this a facilitative program and not a classroom training, the facilitator comes from HR Learning. HR owns the program, designs and deploys it. They take feedback and constantly work on improving the program. A lot of times, though they facilitate and own the program, they also take trainers from within the business. So it is a healthy exchange of information, people and feedback”.

Shades of Awareness: At IBM, employees have to constantly communicate with cross-cultural teams and also travel to different locations on global business assignments.Therefore, the need to bridge the cultural gaps especially when employees are travelling to areas that are culturally diverse becomes essential. For instance, an Indian employee travelling to Manila or hosting a German client is bound to come across cultural differences.IBM has recognized the importance of dealing with issues arising out of cultural differences and has developed both simple and more involved ways of dealing with them. For one, it has teamed up with company called TMA to build framework for crosscultural understanding. To help employees travelling to culturally diverse regions, IBM makes use of Web based tool, called the ‘Country Navigator’, which is basically a self –awareness tool.

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IBM identifies several key ‘lessons learned’ with ‘Shades of Blue’ that have been essential to success on a global scale :

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1)

Ensure a strong linkage to strategic business imperatives to focus the discussion of culture and multiculturalism in concise, applied business terms.

2)

Support the initiative with a blended approach to learning, incorporating face to face sessions with online resources.

3)

Create a global, cross- cultural development and delivery team to effectively deploy the global initiative.

4)

Create effective relationships with subject matter experts that ensure alignment specific to an organizations needs. Management Guru: Journal of Management Research


With these four cultural skills, a matrix is drawn and evaluated as to what needs to be done at a particular situation. For example, X is at Global D & I and doing some kind of a cultural due diligence. X has to develop a broad knowledge of the cultural pattern and their roles by building boundaries, fine tune observations, etc. Drawing a matrix at any point will help X know about the specific activities that needs to be done before he embarks.

Elements of Shades: This program includes online learning followed by an interactive workshop; the program combines presentations, group discussions, role playing and videos to build understanding and skills for multicultural engagement. To build cultural competence, this program engages individuals in a continuous learning cycle. The process defines essential learning requirements to enhance cultural competence: open attitude, selfawareness, other-awareness, cultural knowledge, and cross-cultural skills (such as style-switching and cultural due-diligence). ‘Shades of Blue’ is a day-long program in an informal setting. It is an interactive program where one gets to know that small things also matter.

Floating Seamlessly: The program has been running seamlessly since 2001 and this has proven to be a big success for IBM especially when there’s so much of travel globally .It is important that one is aware of regional conflicts that exist. This is where the ‘Country Navigator’ and the ‘Shades of Blue’ come to rescue, helping employees globally to bridge the cultural gaps.IBM has successfully demonstrated the global impact of diversity in a compelling, useful and usable manner through its global initiative ‘Shades of Blue’. After the first year of deployment, participant feedback emphasized a heightened appreciation of attitudes towards diversity, improvements in customer-client support, enhanced cross-border negotiation results and improved crossborder functional communication. The organisation has global diversity i.e., the skill to effectively leverage differences for competitive advantage is a living practice that evolves with the business.

It is an interactive session, if there are five people in the group, there will be five individual profiles and discussion happen and examples and experiences are shared. Each one learns more about the other, getting more accustomed, aware, and sensitive to the fact that even small things matter. This way a 4*4 matrix or a kind of application is created where these skills can be applied and also, the cultural skills one would need to complete the matrix. The four different aspects that go into the matrix are Global D & I (learn about the regional or corporate culture), leadership development (how to treat or behave with a top client or a team member from a different region/ culture, located elsewhere), global business assignment (employees sent on global business assignments) and team effectiveness (teams which are split across different regions/ cultures)”.

As IBM continues implementation of ‘Shades of Blue’ the power of multiculturalism will emerge as a key to its competitive superiority in the global marketplace.

"Jealousy is the bane of our national character, natural to slaves. Even the Lord with all His power could do nothing on account of this jealousy. Think of me as one who has done all his duty and is now dead and gone. Think that the whole work is upon your shoulders. Think that you, young men of our motherland, are destined to do this. Put yourselves to the task. - Swami Vivekananda (IV.359-60)

"First of all, try to understand this: Does man make laws, or do laws make man? Does man make money, or does money make man? Does man make name and fame, or name and fame make man? Be a man first, my friend, and you will see how all those things and the rest will follow of themselves after you. Give up that hateful malice, and dog-like bickering and barking at one another, and take your stand on good purpose, right means, righteous courage, and be brave. When you are born a man, leave some indelible mark behind you." - Swami Vivekananda (V.462)

"Let us all be honest. If we cannot follow the ideal, let us confess our weakness, but not degrade it; let not any try to pull it down." - Swami Vivekananda (IV.145)

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Innovation and Knowledge Management Prof. Jharna Kalra BMS Co-ordinator Sydenham College of Commerce & Economics Mob: 9819967662 Office: 022-22813477

Knowledge exists to be imparted. Ralph Waldo Emerson INNOVATION = CREATING NEW KNOWLEDGE What is Innovation Management?

generated are greater. Second, it meant that top management has to adopt appropriate innovation strategies to lead the surge of the innovative activity. As a result innovation needed to be systemized as a business process into the way that the organization does business – and hence the need for innovation management. Only organizations that liberate the innovative spirit of their employees, tap into the knowledge of their customers and partners, and manage innovation projects as a portfolio are able to reduce time to market with successful products. Examples of such companies are HP, 3M and Procter and Gamble.

Innovation management emerged as a discipline in the 1890s with Edison’s innovation factory. Edison changed the image of the sole inventor by converting innovation to a process with recognized steps practiced by a team of inventors working together – laying the basic design of the R&D department. These steps are streamlined to the major extent in all industries and include idea generation, concept development, feasibility studies, product development, market testing and launch. Innovation management is thus corresponds to the development of new products, processes and services. In cases where the organization does not make or offer products (goods or services), innovation lies in improving the way jobs are done to meet the organization’s mission (i.e. process innovation)

Managing innovations in organizations “Success means growth and growth means change” Virtually all innovations, certainly major technological innovations such as pharmaceutical and automobile products, occur within organisations. The management of innovation within organisations forms the focus. The study of organisations and their management is a very broad subject and no single approach provides all the answers. The identification of those factors and issues that affect the management of innovation within organisations . It is a great paradox that there are innumerable obstacles to innovation in the current corporate environment. It is also absolutely essential to the survival,growth and prosperity of any company to have some means to manage innovation.

Why Innovation Management? The high demand for innovation in the knowledge economy – brought about by shorter technology and product life cycles as well as the sophistication of customers – increased the organizational demand for new ideas. This meant two things first innovation has to be pushed down to the frontline where knowledge of the customer is and where the number of ideas

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Competition,mistrust,scarcity of time,money and other resources make it very difficult to innovate. These same reasons make innovation imperative. Nearly every major innovation in the world was developed as a response to a problem of some kind;that being

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sometimes taken far longer to obtain: profitable, commercial products that tap unarticulated customer needs. And the products and services the Lead User System creates are more novel, more likely to “change the basis of competition” — a watchword phrase at 3M.

true,there will never be a shortage of opportunities to innovate. Historically speaking,a series of innovations have changed the economy of many countries and the world. Many times,these innovations were badly managed (or not managed at all) and had uncomfortable and sometimes nearly tragic consequences for the people involved with them.

Definition of Knowledge Management: A Working Perspective

Managed Innovation: 3M’s Latest Model For New Products

‘Knowledge Management (KM) is the set of professional practices which improves the capabilities of the organization’s human resources and enhances their ability to share what they know.’

Innovation Means More Than “Just” New Products. 3M’s experience has shown that the Lead User System is successful not solely from the productoriented point of view, but at a higher plane of creating comprehensive new business models. Several of 3M’s Lead User Teams were led to these strategy-level developments when they uncovered huge profitable future markets, demanding both new products and new technologies.

Knowledge Management Cycle:

Create

Learn

But these markets also required entirely new strategies for 3M to be able to profitably enter and drive those markets. These teams were faced with the question of, “What do we do if these lucrative new future markets do not fit within our existing business market strategies?”

Use

With the support of 3M management, these Lead User Teams created the necessary new strategies and business models that provided the “fit.” These teams then went on to develop customer support services, product/service toolkits, product families and novel approaches to channel partnerships.

Find

Acquire

Knowledge in business canbe seen to have a lifecycle of its own.

The changes the teams are creating in 3M’s business culture are currently causing the greatest excitement among 3M managers because they encourage higher levels of innovation within 3M’s organization. Most importantly, the Lead User System’s collaborative approach takes the company away from viewing innovation as an individually practiced art that takes place primarily in the lab. Innovation is becoming viewed as a cross-functional market-focused collaborative discipline, completely dependent on activities and relationships that cross the company’s boundaries. The Lead User System is now one of the more productive and cost-efficient innovation methods in use at the company today. The system accomplishes in months with four to six people what otherwise has Management Guru: Journal of Management Research

Store

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z

It must be created either within or outside the organization. This is typically comprised of iterative tacit and explicit loops until the knowledge is ready for distribution to those outside the creating group.

z

It can then be stored somewhere, either tacitly or explicitly so that it is accessible for others to find and use.

z

Those who need the specific knowledge must then find out where it is, when they need it, by searching in the right places and / or asking the right people.

z

Once the knowledge source is found, the user will then go through the act of actually acquiring it.

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reward systems put in place to encourage active use of the knowledge management system. Absent careful thought about the various ways in which the contents of a knowledge management system feed into business processes, the risk is a measurement system that actively inhibits rather than promotes innovation

This will involve gaining personal knowledge from other humans or documented sources. z

Once acquired, the knowledge can be put to use towards some productive purpose.

z

Having been used, perhaps repeatedly, the user will learn what worked well and not so well as a result of applying the knowledge gained. This can then be taken as significant input into further iterations of the knowledge creation and distribution process.

Innovation at Whirlpool - Creating a New Competency This case is about the organization development (OD) initiatives undertaken at Whirlpool Corporation (Whirlpool) to create a new core competency in the form of building an innovation culture within the organization. In the late 1990s, Whirlpool was faced with stagnation in revenues, profits, and market share. According to analysts, this was a direct result of the stagnation in its product line due to the lack of innovative products. Whirlpool used the services of Strategos, a consultancy firm, to develop I-consultants and various I-mentors from within the organization, to form a coaching network to coach/mentor the employees and help them develop an innovation mindset.

A key contributor to the effective management of this cycle is the concept of learning. Without the learning component, the cycle is devoid of knowledge. It merely, becomes an information delivery strategy, which becomes disconnected from the leverage of more effective human experience. The application of the delivered knowledge to operating the business (Find, Acquire and Use) will have some initial value but the delivered knowledge will be immediately out of date unless continuously renewed with the latest lessons learned from the application of the delivered knowledge (Learn, Create and Store).

The Results According to the company, revenues from innovative products were almost US$800 million in 2005 as compared to just US$10 million in 2001. The share price had also doubled

Knowledge Management is the management of this cycle for optimal performance across all aspects of the Knwledge six pack knowledge management:Hewlett –Packard

Between 2003 and 2005, Whirlpool’s revenues had grown at an average of 9% per annum. Fitting had attributed one third of this growth rate to innovative new products. As of April 2006, Whirlpool’s innovation pipeline had 568 projects under development of which 195 were being scaled up for commercial launch. The company expected these new appliances to rake in another US$ 3.3 billion in annual sales once they were launched (for Whirlpool’s innovation pipeline). Commenting on these improved results, Fettig explained, “We’re seeing evidence of what we call a “want in.” In other words, consumers see something that is so different or innovative that they want to buy it as opposed to: they have to buy it.

Hewlett –Packard a large sucessful manufacturing of electronic components is eploding Knowledge Management.The corporate knowledge czar would not fit in HP or it is highly decentalised with many departments undertaking specific efforts to better mange knowledge .Hp has the most neede division Product Proces Organisation (PPO) for implementing Knowledge Mangement and its innovative tactics to get the submission to th knowledge management. Knowledge management and innovation What’s the relationship between knowledge management practices and innovation? On first thought, you would think that effective knowledge management would contribute to more effective innovation as well. On the other hand, knowledge management has often been justified on the value of not routinely reinventing solutions to problems that an organization has already solved. This potentially puts knowledge management and innovation at odds with one another.

Conclusion The dynamically changing environment has led to the dissolution of traditional concepts of products and services. The emphasis is increasingly on innovation and creativity. Realizing this, firms across the globe have started building Knowledge Management(KM) systems in order to facilitate a culture which promotes

The sticking point lies in the measurement and

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efficient usage of its intellectual capital. The biggest challenge faced by Indian firms implementing KM systems is to motivate employees to contribute to and utilise the existing knowledge pool by overcoming traditional notions which discourage imitation and copying. Firms which have overcome such obstacles have reaped good dividends from their investment in these systems. Moreover, it is believed that inculcating the culture of sharing and increasing contributions to the knowledge pool will be easier if firms adopt policies which provide social incentives rather than monetary incentives to its best employees. Investing in KM systems in itself will not ensure increased creativity and innovation but it most definitely will serve as the engine that can fuel Indian firms to move up the value chain.

“The business environment continues to change at a dramatically increasing pace. To thrive in this turbulent environment, we must confront the business need for relentless innovation and forge the future workforce culture.” References : ·

Knowledge management (tool for business development) by Dr B Rathan Reddy

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http://www.emeraldinsight.com/journals.htm

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http://www.mcgeesmusings.net/2007/11/14/ knowledge-management-and-innovation/

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p://www.icmrindia.org/casestudies

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ww.systems-thinking.org/kmgmt/kmgmt.htm

"Europe, the centre of the manifestation of material energy, will crumble into dust within fifty years if she is not mindful to change her position, to shift her ground and make spirituality the basis of her life. And what will save Europe is the religion of the Upanishads. (Uttered by Swamiji in 1897) (III.159)

"After so much austerity, I have understood this as the real truth - God is present in every jiva; there is no other God besides that. 'Who serves jiva, serves God indeed.'"- - Swami Vivekananda (V.246)

"This life is short, the vanities of the world are transient, but they alone live who live for others, the rest are more dead than alive." - Swami Vivekananda (IV:363)

"Truth, purity and unselfishness wherever these are present, there is no power below or above the sun to crush the possessor thereof." - Swami Vivekananda

"What I say is not, 'Reform', but, 'Move on'. Nothing is too bad to reform. Adaptability is the whole mystery of life - the principle underneath which serves to unfold it. Adjustment or adaptation is the outcome of the Self pitted against external forces tending to suppress it. He who adjusts himself best lives the longest. Even if I do not preach this, society is changing, it must change. - Swami Vivekananda (VI.110)

"Each nation has a destiny to fulfill, each nation has a message to deliver, each nation has a mission to accomplish. Therefore, from the very start, we must have to understand the mission of our own race, the destiny it has to fulfill, the place it has to occupy in the march of the nations, the note which it has to contribute to the harmony of races…we must conquer the world through our spirituality and philosophy. There is no other alternative, we must do it or die." - Swami Vivekananda

"What is the use of fighting and complaining? That will not help us to do better things. He who grumbles at the little thing that has fallen to his lot to do will grumble at everything. Always grumbling, he will lead a miserable life, and everything will be a failure. But that man who does his duty as he goes, putting his shoulder to the wheel, will see the light, and higher and higher duties will fall to his share." Swami Vivekananda (V.242)

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Global Crisis of Ethics Role of Management Gurus Yeshpal Gautam HR Consultant and Visiting Facuty for Management Courses

Abstract : This research paper is an attempt to explore the root cause of Global Economic Crisis. It uses chronological events globally and in-house and their effects as evidence for the cause of happenings. It tries to study the mindset behind the practices by the corporate houses globally. Finally it concludes with the role of management teachers in avoiding such crisis in future. We have just passed through the Global Economic Crisis. It created an economic scenario where the economies of countries all over the world had taken a beating. The GDP’s of countries had gone down in -ve zone. There was severe liquidity crunch and countries & governments around the world were frantically taking steps to combat this issue. The crisis was not less than tsunami. The economic crisis has broken the temporary solutions which have ruled the world economy since the mid-1980s. Profits had been created through production but, in contradiction, were realized through circulation and exchange. Industry of our country was not affected to extend others were. In India only those industries were affected which followed the Western Business Style. Industries which served local community were affected the least. Indian Corporate ethos believes in Seva to be the mantra for success in business. It believes in developing Satwik qualities in business. It believes in sacrificing yourself for the sake of organization. An individual is treated as human first and then as an employee. The Indian concept of management is focused not merely to develop a person as a better employee but also to transform him as a better human being. It believes in keeping self control to be away from unethical practices. Indian ethos lays much stress on self-management and self-development. This disaster was created by us. It was due to happen. It was the outcome of our own uncontrolled desires. Whenever we will cross our limits, it will happen again and again. Therefore it is very important for us to investigate the root cause and remedies of this happening. If we see the practices carried out by most of the business houses throughout the world, we find that they were deliberately indulged in unethical practices, as if it was a standard norm of doing a business. They did so, because of the concept that western business style followed. It believes that business is only to earn profit. It believes in survival of fittest. It believes that Human is not important in business. It is about outward-focused social vision. It lost importance of Moral Values in Business. The unethical managers, who brought the disaster, were made in Management schools. Therefore the responsibility goes to Management schools also. The management gurus stretched on teaching Management techniques more than inculcating Moral Values in the Booming managers. Thus we need to include such subjects in the curriculum of MBA course which can enhance their moral values and make them Ethical managers. Thus such Global Economic Crisis in future can be avoided. Indian ancient management principals are applicable in today’s scenario as well. Thus subjects like ‘Chanakya Niti’ should be taught by Management teachers.

GLOBAL ECONOMIC CRISIS

2008. This time the economy collapsed because the money and wealth was created out of vacuum. This money was moving from one part of the world to another. It was creating an expression that there is money.

We have just passed through global economic crises, which was triggered somewhere in middle of 2007 and was slipping down till the end of 2008. This economic crisis had affected not only the big industry houses but also the layman staying far in a village who may not even have heard about the word economy. This is for the third time we have faced economic crises. First, just after Second World War, Then in 1991 when Dr. Manmohan Singh then Finance minister announced Open Economy, and now in September

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EVENTS THAT TRIGGERED GLOBAL ECONOMIC CRISIS The Global Economy has hit the ground to the lowest level this time. It is for the first time in last eight decade that it is passing through such severe pragmatic

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Thus we see that the global economic crisis was the result of irresponsible actions taken in various countries. The prices of the thinks were made higher than there values. Every one took part in a race to become ‘bigger-larger-higher’ even at the cost of lose of Ethics. And because of the consequences of this, lot of things happened.

state. In medical term, it can be said that Global Economy is in ICU. Out of the various events the few events that I can list here for blaming Global Economic Crisis are: First the bursting of dot-com bubble in year 2000 and then deflationary scare in 2002 after the collapse of Enron.

AFFECTS OF GLOBAL ECONOMIC CRISIS

Enron Fraud

Who was behind this game? This game has not only affected the whole world, but also the architect of this game that is US.

It was one of the largest securities fraud scandals in history, and the investigation into the extent of the fraud committed by Enron is still ongoing. As a result, Enron was forced to file for bankruptcy in December 2001.Enron is an energy company based in Houston, Texas that deals with the energy trade on an international and domestic basis. It was formed in 1985 when Houston Natural Gas merged with Inter- North. After several years of international and domestic expansion involving complicated deals and contracts, Enron was billions of dollars into debt. All of this debt was concealed from shareholders through partnerships with other companies, fraudulent accounting, and illegal loans.

It is argued that business cycle is nothing but a Vicious Circle. This global recession has created liquidity vicious cycle in all sectors. In Global economy, weak credit accelerator has contributed to more real economic problems such as-, Joblessness, Unemployment, global riots / criminal activities etc. Unemployment In 1929 Economic crises 40 million dollars of stock market shares were lost in US alone, the negative effect of which was then seen through out the world. It effected the employment and thus the purchase power of the people though out the world.

Then recently the unfolding developments in the global financial markets following the US Subprime Mortgage crisis since August 2007.

It has been observed that economic recession has increased the rate of unemployment in the world economy. In current Recession about 30 to 40 percent people lost there jobs. Only in US 3.6 million became jobless between December 2007 to 2009. 7,80,000 Asians came back from abroad. 40,000 visas of Dubai were cancelled. The data reveals from these sources that job losses have continued in this financial year. With the 1st quarter survey revealing 1.71 lakhs layoffs. Thus, we find that joblessness has increased in Asian economies especially during post recession period.

Sub-Prime Crisis The bubble of sub-Prime Crisis in the housing sector in USA finally burst in the year 2008. In the housing sector of US economy, the crisis was triggered by the policy of “Adjustable-Rate-Mortgage” called the operation ARM. The option ARM allows the borrower to pay less interest than the formal rate for a limited period and the unpaid interest is added to the Original loan. This process has been called as “Negative Amortization”. The process of negative amortization resulted in a situation, where in the liability of the borrower exceeded the value of the property covering the mortgage. Imagine what will one do, if he is asked to pay more then his house value. Thus, the option ARM measure has effectively arm twisted, the economy of USA and in turn global economy.

Mr. Reaser Chairman of The National Association of Business Economists (NABE) conducted a Survey in Sept 2009 and predicted that unemployment rate would rise to 10% in the first quarter of 2010 in the labor market. And would not regain most of the jobs destroyed in current recession until 2012, due to labor market slack, Combined with weak wage growth, meant inflation.

Satyam Scandal The Satyam disclosure has had a similar effect on the corporate world in India. The CEO, Ramalinga Raju cooked up the nos in his balance sheet so that he showed fake profits although the company was making losses. He inflated the company’s profits for years. Management Guru: Journal of Management Research

There is no single panacea to increase employment during recession. But we had observed one thing that Indian economy could not collapse, due to the minimum ration

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was felt high on manufacturing and export sector, construction and BPO industry. It has created negative impact on Employment in these sectors.

in International trade and house hold nature of our economy, except joblessness to some extent. Crime

Indian IT sector

This joblessness has increased riots and terrorist activities in most of the countries in the world. It has been observed that, the financial meltdown has become a part of real economy which has resulted into criminal activities globally. For eg. Green- farmers blocked the road into Bulgaria in protest at low prices for their produce. More and more citizens on the edge of global crises are taking to the streets like Paris, Russia, Britain, Iceland, Lativa, France, and Delhi etc. In Mumbai Jet Airways employees protested against layoffs. According to Delhi police recession in India has caused a spurt in criminal activities because during Feb to June 2009 number of criminal activities spread in Delhi & those criminals had no criminal ante dents. It implies that, due to recession unemployed young people in most of the urban areas committed “riots/ criminal activities. It means, recession has ignited global riots in the world economy.

The IT sector in our country is not an industry, because our IT industry does not have any product like US IT industries has. They have MS Windows, MS Office, Oracle, Visual Basic and many other such products which they make once and sell many times. The Computers we use are build around US Microprocessors like Intel or AMD. Our IT Sector is just the subcontractor for the US IT industry. We work as data entry operators for the US IT industry. If from our IT industry US component is removed we are left with nothing. Therefore when the main industry suffers, the subcontractors will have to suffer. That was the reason why our IT industry suffered so much. I appreciate the initiative by Ratan Tata, to venture into designing of world’s fastest Super Computer based on algorithms of Dr. Narendra Karmarkar. In very near future we will be proud of manufacturing world’s fastest super computer in Pune.

Effect on Poor countries The UN Food Agencies has pointed out that, the food crisis in poor countries coupled with the global economic crisis have changed a spike in world hunger, with more than one billion people under nourished this year, because financial crisis has led to declines in foreign aid and investment in poor countries as well as remittances from relatives working in wealthy countries. Thus global Recession has made matter worst, to everyone connected to it directly or not.

It is the responsibility of our industrialists and entrepreneurs’ to see that we have true IT industry and not the dependent IT industry. FOREIGN V/S DOMESTIC TRADE If we go post September 2008, we see that the international trade suffered the most. The India has least hurt out of it. Some nations went Bank corrupt like UK. Our industries that suffered were those who followed the foot prints of western trade style or were totally dependent on them. They shattered like pack of cards as soon as foreign market collapsed.

Effect on Indian industry The Economic Survey 2008-09 revealed that the Global financial meltdown & Consequent economic recession in developed economies have clearly been major factor in India’s economic slowdown.

The industries which served the local community have suffered the least.

It is observed that, there was a negative impact on Indian Capital market in 2008 due to reverse flow of equity portfolio. and withdrawal of Foreign Institutional Investors.

ROOT CAUSE OF GLOBLE ECONOMIC CRISIS What is business?

Increasing inflationary gap, increasing sky high oil prices has aggravated the recession, which forced to some important financial institutions in liquidation. Banking sector could not suffered due to the utilization of Black Money in housing sector But, the negative impact of Global Financial meltdown on Indian economy

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Business is a creative art. But how can an art be so cruel. It is not the need of the business but the Greed of the businessman which makes him cruel. It is the inner weakness of the man in manager who makes him prey in the hands of evil practices.

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a global non-profit organization, is a self-regulated organization that represents 217 nations and all 50 United States offering a Charter in Business Development (CBD) that focuses on ethical business practices and standards. This organization is situated in US, but still US is considered as architect of Modern Economic Crisis. Thus let’s find out what according to Western style is the importance of Ethics in business.

Today we see many unethical practices in business like: z

The misuse of corporate ethics policies as marketing instruments.

z

Creative accounting, earnings management, misleading financial analysis.

z

Insider trading, securities fraud, bucket shops, forex scams: concerns (criminal) manipulation of the financial markets.

Western business style

z

Executive compensation: concerns excessive payments made to corporate CEO’s and top management.

Mark Twain said “The secret of success is honesty and fair dealing, if you can fake these, you’ve got it made.”

z

Bribery, kickbacks, and facilitation payments: while these may be in the short-term interests of the company and its shareholders. These practices may be anti-competitive or offend against the values of society.

Many western thinkers claimed that a Gresham’s law of ethics applies in which bad ethical practices drive out good ethical practices. It is claimed that in a competitive business environment, those companies that survive are the ones that recognize that their only role is to maximize profits.

Somewhere along the way, as we chase our goals, deadlines, targets or simply our daily to-do lists, we tend to forget the real issues in the world outside our windows. The world can be saved if someone can appeal to leadership to shake off the ‘bigger-largerhigher’ stupor that has consumed business.

Western Philosophers and others disagree about the purpose of a business ethic in society. For example, some suggest that the principal purpose of a business is to maximize returns to its owners, or in the case of a publicly-traded concern, its shareholders. Thus, under this view, only those activities that increase profitability and shareholder value should be encouraged, because any others, function as a tax on profits. Some believe that the only companies that are likely to survive in a competitive marketplace are those that place profit maximization above everything else. However, some point out that self-interest would still require a business to obey the law and adhere to basic moral rules, because the consequences of failing to do so could be very costly in fines, loss of licensure, or company reputation. The noted economist Milton Friedman was a leading proponent of this view.

The speed to attend bigger-larger-higher race was so high that they lost the stamina and collapsed. The very least we can do is to be honest about what we do each day. There is so much poverty, so much hunger across the world. Greed for revenue and profits can only transform our world into an animal kingdom. It matters little what you do as long as you live your life with pride. It is fine to earn more as long as it is done honestly and not at the cost of others. It is not naïve to say, the world can be completely honest. All that has to be done is to find our true passion and work for that passion honestly. And in doing so, help our people find pride in their work and the thrill attached to that rather than in hanging an ‘available for rent’ board around our necks.

Some take the position that organizations are not capable of moral agency. Under this, ethical behavior is required of individual human beings, but not of the business or corporation. Many companies are assessing the environmental factors that can lead employees to engage in unethical conduct. A competitive business environment may call for unethical behavior. Lying has become expected in fields such as trading. An example of this is the issues surrounding the unethical actions of the Saloman Brothers.

Thus we realize that lose of ETHICS in business was the root cause of Global Economic Crisis. What made managers lose ethics? The International Business Development Institute, Management Guru: Journal of Management Research

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with results available to all. Employee can be provided login to Company website through Company Computers or from home to communicate to his colleagues and seniors. The company policies and agreements with union and other parties should be accessible to all employees. Regular periodicals and generals should be published and distributed to employees. Library facility to be provided to all employees and not to only selected category of employees.

Not everyone supports corporate policies that govern ethical conduct. Some claim that ethical problems are better dealt with by depending upon employees to use their own judgment. Others believe that corporate ethics policies are primarily rooted in utilitarian concerns, and that they are mainly to limit the company’s legal liability, or to curry public favor by giving the appearance of being a good corporate citizen. Ideally, the company will avoid a lawsuit because its employees will follow the rules. Should a lawsuit occur, the company can claim that the problem would not have arisen if the employee had only followed the code properly?

Accountability of management to its employees The other pillar on which trust can be built is a culture of accountability of management to its employees, and not the other way around. We need to simply invert the traditional prism of how businesses should be run. We all know that accountability of leadership is non-negotiable to all stakeholders like; customers, investors, shareholders, and regulators. But the one stakeholder that is often missing in accountability is the most important - our own people. We are obligated to the thousands of hard-working people who have scripted our success. Who have trusted us and woken up every morning with a passion for their work.

Sometimes there is disconnection between the company’s code of ethics and the company’s actual practices. Thus, whether or not such conduct is explicitly sanctioned by management, at worst, this makes the policy duplicitous, and, at best, it is merely a marketing tool. Thus we see that western business style believes that, Character demonstrated by actions, not by intentions, is the only reliable measure of corporate ethics.

Businesses can often attain short-term gains by acting in an unethical fashion; however, such behaviors tend to undermine the economy over time.

Or it is not wrong to say that they do business to earn profit and not to do social work. For them Human has no importance in business. They believe in Survival of the fittest.

Moral responsibilities Business ethics can be both a normative and a descriptive discipline. As a corporate practice and a career specialization, the field is primarily normative. In academia descriptive approaches are also taken. The range and quantity of business ethical issues reflects the degree to which business is perceived to be at odds with non-economic social values. Historically, interest in business ethics accelerated dramatically during the 1980s and 1990s, both within major corporations and within academia. For example, today most major corporate websites lay emphasis on commitment to promoting non-economic social values under a variety of headings (e.g. ethics codes, social responsibility charters). In some cases, corporations have redefined their core values in the light of business ethical considerations.

There business is like running in a race to be saved from being crushed by followers. HOW SHOULD BUSINESS BE DONE Today, thinkers and world leaders have started the search for ‘Ethical Quotient’. Going beyond the intelligence quotient and the emotional quotient, it is seeking answers to important questions such as: How much is too much? How big do you want to be? How far are you willing to go to get there? Is being big more important than being trusted? We need to win back trust of our employees. Trust is the only currency that can sustain a corporation through the turbulences over its lifecycle. And, in my experience, one of the most uncomplicated ways of seeding trust is through transparency. This fabric of trust can be woven with simple but very effective tools like direct and open employee-CEO/manager dialogues, either in-person or through interactive platforms like blogs, employee polls

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Other theorists contend that a business has moral duties that extend well beyond serving the interests of its owners or stockholders, and that these duties consist of more than simply obeying the law. They believe a business has moral responsibilities to so-called stakeholders, people who have an interest in the

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rights, women’s rights, and other -isms that few disagree about in principle. For instance, military production and animal testing are negative screens while the use of “natural” products or campaigning for Third World rights demonstrates a higher ethical standard. Academics, the media, and social investment firms have uncritically promoted these fashionable standards.

conduct of the business, which might include employees, customers, vendors, the local community, or even society as a whole. Stakeholders can also be broken down into primary and secondary stakeholders. Primary stakeholders are people that are affected directly such as stockholders, where secondary stakeholders are people who are not affected directly such as the government. They would say that stakeholders have certain rights with regard to how the business operates, and some would suggest that this includes even rights of governance.

Unfortunately, applying these ambiguous litmus screens is more than just problematic; these categories can promote a not-so-thoughtful social agenda of questionable ethics. The business ethics community has some soul searching ahead of it. Is it about outwardfocused social vision, as represented by many vocal leaders? Or is it about ethics? putting out a quality product at reasonable prices; treating employees, vendors, franchisees, and investors fairly; acting responsibly toward the local environment and community; and, most of all, embracing transparency in operations and accountability to critics, internal and external?

Some theorists have adapted social contract theory to business, whereby companies become quasi-democratic associations, and employees and other stakeholders are given voice over a company’s operations. This approach has become especially popular subsequent to the revival of contract theory in political philosophy, which is largely due to John Rawls’ A Theory of Justice, and the advent of the consensusoriented approach to solving business problems, an aspect of the “quality movement” that emerged in the 1980s. Professors Thomas Donaldson and Thomas Dunfee proposed a version of contract theory for business, which they call Integrative Social Contracts Theory. They posit that conflicting interests are best resolved by formulating a “fair agreement” between the parties, using a combination of i) macro-principles that all rational people would agree upon as universal principles, and, ii) micro-principles formulated by actual agreements among the interested parties. Critics say the proponents of contract theories miss a central point, namely, that a business is someone’s property and not a mini-state or a means of distributing social justice.

Corporate Ethics is not so Easy Ethics, like democracy, is a lot easier in theory than in practice. As an example, let’s look at the proliferation of codes of conduct and mission statements that have been drafted in the wake of the Kathie Lee Gifford fiasco over foreign sweatshops. The Gifford scandalette, as helpful as it has been in shining needed light on the complicated issue of foreign sourcing, may also leave us with a not-very-progressive legacy if we’re not careful. The most highly touted solution to U.S. manufacturers’ sourcing of goods from low-wage countries, corporate codes of conduct on sourcing, frequently ends up doing far more harm than good. As well-meaning as these codes and mission statements purport to be, promises that companies cannot hope to implement, or that cause more harm than good if they are implemented, divert attention from the need for structural changes in the relationship between consuming nations and raw material suppliers. The real benefits of many well-publicized codes have gone to the companies who are embarrassed into drafting them, not the people they were designed to help. We see these affects on our local industries in country, caused by China low cost product.

Corporate ethics The sobering reality is that the socially responsible business movement may promote corporate behavior that is neither progressive nor particularly ethical. Business ethics is based on broad principles of integrity and fairness and focuses on internal stakeholder issues such as product quality, customer satisfaction, employee wages and benefits, and local community and environmental responsibilities? issues that a company can actually influence. The corporate responsibility movement, on the other hand, has come to elevate a social and political agenda that draws on notions of liberal propriety and correctness that date to the 1960s. Truisms of social responsibility include the embrace of environmentalism, antiwar pacificism, human rights, animal rights, sexual Management Guru: Journal of Management Research

The corporate world cannot be divided easily into “good guys” and “evil companies.” Companies are dysfunctional families writ large. Mistakes, sometimes

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Content of advertisements: attack ads, subliminal messages, sex in advertising, products regarded as immoral or harmful.

whoppers, are built into life, including the life of corporations. Self-scrutiny and accountability are essential. The measure of a company’s integrity is not how loudly it beats its own breast, or whether it blunders, but its respect for its stakeholders and its responsiveness to problems.

Children and marketing: marketing in schools. One of the tooth pastes making company, distributed free tooth paste for one year, to a school children in Mumbai. This tooth paste made children addict to the past.

ETHICS IN BUSINESS If we destroy our reputation in search of profits, we destroy our pride and ourselves.

Black markets, grey markets. International Marketing Ethics

Why Japanese are so successful in business?

While business ethics emerged as a field in the 1970s, international business ethics did not emerge until the late 1990s, looking back on the international developments of that decade. Many new practical issues arose out of the international context of business. Theoretical issues such as cultural relativity of ethical values receive more emphasis in this field. Other, older issues can be grouped here as well. Issues and subfields include:

Because, they believe in business ethics. They provide quality products and services to their customers and never cheat them. Thus, they provide service to the community and fulfill social responsibility. They do the business fairly. They earn profit but not at the cost of quality. Japanese spend on the training of the employees, as they believe that employees will be associated with the organization for a long time. They have holistic concern for employees, taking care of the individual as a whole. I see an opportunity ahead of us to stop, think and act by redefining the purpose of existence of our companies beyond revenues and profits. More importantly, we need to stand accountable to that vision each day. God gave us just one life... let’s use it well.

z

The search for universal values as a basis for international commercial behavior.

z

Comparison of business ethical traditions in different countries. Also on the basis of their respective GDP and Corruption rankings.

z

Comparison of business ethical traditions from various religious perspectives.

z

Ethical issues arising out of international business transactions; e.g. bio-prospecting and bio-piracy in the pharmaceutical industry; the fair trade movement; transfer pricing.

z

Issues such as globalization and cultural imperialism.

z

Foreign countries often use dumping as a competitive threat, selling products at prices lower than their normal value. This can lead to problems in domestic markets. It becomes difficult for these markets to compete with the pricing set by foreign markets. Dumping is often seen as an ethical issue, as larger companies are taking advantage of other less economically advanced companies.

Marketing ethics Marketing, which goes beyond the mere provision of information about and access to a product, may seek to manipulate our values and behavior. To some extent society regards this as acceptable, but where is the ethical line to be drawn? The issues that have to be covered here are: Pricing: price fixing, price discrimination, price skimming. Anti-competitive practices: these include but go beyond pricing tactics to cover issues such as manipulation of loyalty and supply chains.

Ethical issues can arise when companies must comply with multiple and sometimes conflicting legal or cultural standards, as in the case of multinational companies that operate in countries with varying practices. The question arises, for example, ought a

Specific marketing strategies: greenwash, bait and switch, shill, viral marketing, spam (electronic), pyramid scheme, planned obsolescence. Sending emails or SMS without the party concern.

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HRM issues

company to obey the laws of its home country, or should it follow the less stringent laws of the developing country in which it does business? To illustrate, Indian law forbids companies from paying bribes either domestically or overseas; however, in other parts of the world, bribery is a customary, accepted way of doing business. Similar problems can occur with regard to child labor, employee safety, work hours, wages, discrimination, and environmental protection laws.

Discrimination issues include discrimination on the bases of age (ageism), gender, race, religion, disabilities, weight and attractiveness. z

Issues arising from the traditional view of relationships between employers and employees, also known as At-will employment.

z

Issues surrounding the representation of employees and the democratization of the workplace: union busting, strike breaking.

z

Issues affecting the privacy of the employee: workplace surveillance, drug testing.

z

Issues affecting the privacy of the employer: whistle-blowing.

z

Issues relating to the fairness of the employment contract and the balance of power between employer and employee: slavery, indentured servitude, employment law.

z

Occupational safety and health.

Ethics in Corporate Policies Seva should be the mantra in the business organization. Instead of profit-orientation, they should be service oriented. They should provide best service to all the stakeholders, to all their customers – internal and external. Customer delight should be the objective. As part of more comprehensive compliance and ethics programs, companies must formulate internal policies pertaining to the ethical conduct of employees. These policies can be simple exhortations in broad, in highly-generalized language (typically called a corporate ethics statement), or they can be more detailed policies, containing specific behavioral requirements. Typically called corporate ethics codes.

All of the above are also related to the hiring and firing of employees. An employee or future employee should not be hired or fired based on race, age, gender, religion, or any other discriminatory act.

These will be generally meant to identify the company’s expectations of workers and to offer guidance on handling some of the more common ethical problems that might arise in the course of doing business. I hoped that having such a policy will lead to greater ethical awareness, consistency in application, and the avoidance of ethical disasters.

Employee raiding: the practice of attracting key employees away from a competitor to take unfair advantage of the knowledge or skills they may possess.

Ethics in Human Resource Management

labor.

The ethics of human resource management (HRM) covers those ethical issues arising around the employer-employee relationship, such as the rights and duties owed between employer and employee.

The way in which multinationals take advantage of international differences, such as outsourcing production (e.g. clothes) and services (e.g. call centres) to low-wage countries.

Management should treat an individual first as a human being and then as an employee.

The permissibility of international commerce with pariah states.

HRM is not mere skill development or skill up gradation. It is more oriented to the development of one’s inner being. It is related to developing all those inner divine qualities which are lying dormant among all of us. It is related to developing our soul, developing our Satwik qualities.

Business ethics can be examined from various new perspectives, including the perspective of the employee, the commercial enterprise, and society as a whole. Very often, situations arise in which there is conflict between one or more of the parties, such that serving the interest of one party is a detriment to the

Management Guru: Journal of Management Research

The practice of employing all the most talented people in a specific field, regardless of need, in order to prevent any competitors employing them. Varying global standards - e.g. the use of child

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Employees should keep self control on following unethical practices.

other(s). For example, a particular outcome might be good for the employee, whereas, it would be bad for the company, society, or vice versa. Some ethicists (e.g., Henry Sidgwick) see the principal role of ethics as the harmonization and reconciliation of conflicting interests.

Suggesting process modification without actual Data collection & Analysis: It may have adverse affects.

An increasing number of companies also require employees to attend seminars regarding business conduct, which often include discussion of the company’s policies, specific case studies, and legal requirements. Some companies even require their employees to sign agreements stating that they will abide by the company’s rules of conduct.

Implementing process modification which is actually reversal of earlier modification: Do it first time right. Falsely producing manipulated data (hiding the facts), just for sanction or appreciation of project: People will lose fate in you.

Employee ethics

Producing rectified form of sub-ordinates ideas as your own idea: You are spoiling organization’s culture.

Knowledge and skills are valuable but not easily “ownable” as objects. Nor is it obvious, that has the greater rights to an idea: the company who trained the employee, or the employee themselves? The country in which the plant grew, or the company which discovered and developed the plant’s medicinal potential? As a result, attempts to assert ownership and ethical disputes over ownership arise. Even in our industries, we see that people join a company for experience and then live it for no good reason. z

Patent infringement, copyright infringement, trademark infringement.

z

Misuse of the intellectual property systems to stifle competition: patent misuse, copyright misuse, patent troll, submarine patent.

z

Even the notion of intellectual property itself has been criticized on ethical grounds:

Scraping of good conditioned equipment, when it doesn’t need to be, just for your personal interest. Doing the job you are not employed for, and not doing the job you are employed for: You are nonproductive and making others non-productive. Joining an organization just for training and experience and then leaving it for no good reason or production false reasons: You are spoiling your social image. Using your powers to change the track of someone who is more efficient then you: Do not play dirty politics. It may give favorable short term effects but has bad long term effects. Practicing others rights and responsibilities without his concern: Do not take part in dirty politics.

Sacrifice yourself for the sake of Organization.

Not using your powers to improve the productivity of your plant by changing old technologies to new modern technologies, just to avoid new challenges: If you are at the senior post, you are not only unproductive but also hurdle for the organizational development. Your organization may lose many opportunities for growth.

In today’s tough competitive scenario when western management is declaring that survival of the fittest is only possible and when many Indian corporate are ready to blindly follow the Western principles. We the Indian are facing tough time with too much workpressure and consequently high level of stress. Due to globalization and liberalization tough competition is everywhere. Standard of living has improved to a great extent. We do require more and more money. Fulfillment of personal goals and objectives have become for most of more important than organizational goals and objectives. But we need to realize that if individuals are ready to sacrifice of the sake of the organization, they are associated with, it would grow which in turn ultimately be beneficial for them.

Vol.1 (1) August-October 2012

Being on responsible position, you just play the role of ‘Care Taker’. Favourism: Promoting a person, not because he is capable, but because he is in your favour or of specific cast, language spoken, gender or religion. Ethics in production This area of business ethics usually deals with

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To get rid of all these deadly means and to manage our life in an excellent manner what we require is selfmanagement.

the duties of a company to ensure that products and production processes do not cause harm. Some of the more acute dilemmas in this area arise out of the fact that there is usually a degree of danger in any product or production process and it is difficult to define a degree of permissibility, or the degree of permissibility may depend on the changing state of preventative technologies or changing social perceptions of acceptable risk.

Indian ethos lays much stress on selfmanagement and self-development. Selfmanagement deals with human conduct which is voluntary and not forced by persons or circumstances. If soul is not developed properly, if people follow unethical practices for making profit, there would be stress and strain, unrest, disharmony and frustration, even if they would have attained material gains. It emphasizes on ‘Yogaha Karmash Kaushalam’ indicating excellence in action, no sloppiness, shoddiness and pride in workmanship.

The issues that needs to be considered: Production of Defective, addictive and inherently dangerous products and services (e.g. tobacco, alcohol, weapons, motor vehicles, chemical manufacturing, bungee jumping).

Value-based Indian management time and again emphasizes on self-discipline; to accept responsibility for one’s own rise and fall and not to blame external circumstances.

Ethical relations between the company and the environment: pollution, environmental ethics, carbon emissions trading. Like some companies still continue to produce Caustic Soda by Mercury cell technology, when more environmental friendly Membrane cell technology is available.

One of the main principles of Indian management is to work fearlessly, as Rabindranath Tagore wrote: ‘where the mind is without fear’. Employees in most of the organizations are scared to loose their job and in such a condition they might not be able to give their best output.

Ethical problems arising out of new technologies: genetically modified food, mobile phone radiation and health. Product testing ethics: animal rights and animal testing, use of economically disadvantaged groups (such as students) as test objects.

It emphasizes on spirit of sacrifice and renunciation: profit-sharing and at the same time fulfilling social responsibility. ‘Ishtanbhoganhi vo deva asyante yadny batvitaha’.

INDIAN ETHOS As far as western concept of management is concerned, it is more focused to develop only the skills of the manager. The management’s intention is how to make him a more effective and efficient manager so that organization can earn more and more profit.

Quality is related not merely to the skills of a person but it is connected to his values as well. This means people need to provide best quality services following path of righteousness thinking from long term perspective. They need to be proactive in their approach. It says to establish righteousness, to look beyond profit. ‘Dharma Sansthapanarthaya’.

Indian concept of management is focused not merely to develop him as a better employee, but also to transform him as a better human being.

Patanjali’s ‘yoga sutra’ suggests commanding oneself before directing others.

Mahatma Gandhi said several things that destroy us are:

It emphasizes never to expect the fruits of the result. As individuals only we need to take action. Logic behind this might be that whatever action we are going to take is in our own hand; we can control that, but the result might not be controlled because external circumstances might influence or affect the result.

‘Wealth without work Pleasure without Convenience Knowledge without Character Commerce without Morality Science without Humanity Religion without Sacrifice Politics without Principle’ Management Guru: Journal of Management Research

Management of any organization is having its vision. To attain that vision, they develop the mission-

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Institutions will be to supply them conceptual tools managers need to make choices that are ethically responsible and culturally sensitive, as well as technically sound.

statement, to make the employees as well as other stakeholders understand the very purpose of its existence. The corporate is having specific goals. All the members have to join hands together to attain those goals. In the language of today’s modern management team spirit is the essential prerequisite to attain the goals. A system approach needs to be taken to attain the vision of the company. This is the essence of corporate karma.

Business ethics curriculum should focus on the path to ethical behaviour. The teachers should ask to themselves how to modify major aspects of the personality (values, virtues, moral principles) of their students. The teachers should believe in the idea that; we can modify the personal value systems of our students. Philosophical framework can be used to define self-transcendence for teachers (as well as for students) including both a Socratic radical doubt about reality and knowledge (the awareness of our illusory understanding of reality, and the ability to question our most cherished beliefs and values) and the ability to assess things, people and events in focusing on their “worth for life, in getting rid of our will to believe and our will to truth.

If Government increases additional spending on infrastructure development, especially on education and health, it will be more effective in enhancing future growth potential. While increasing expenditure on infrastructure, the development path must be sustainable & inclusive. For that we must adopt ‘Gandhian’ Approach of development, i.e. ‘Growth for All’ It will lead the global economy towards reviving sustainable development Stage. In the book ‘Chanakya Neeti’, Chanakya has emphasized! ‘as you sow so shall you reap’. This is applicable in today’s scenario as well. If an individual works hard, he will get the reward. If a business house provides cost-effective, quality product, customer will be delighted and will be ever loyal to the company.

REFERENCES

Kautilya’s Arthashastra is one of the ancient Indian books on Management which provides picture of Indian management. This book emphasizes that sometimes for attaining higher objectives or achieving macro-goals of the state, in case situation demands, people might have to compromise on moral. But at the same time it emphasizes that the king as a leader should always be fair and just to his subjects. The Manager should be like a king; expanding the boundaries of the state, increasing prosperity and treating his subjects as children. ROLE OF TEACHERS & EDUCATIONALINSTITUTIONS IN CORPORATE ETHICS Today’s managers are not born, they are made in Professional Management Institutes. Thus a great responsibility comes on the shoulders of the teachers to make Ethical Managers. They have to not only teach management techniques, but also have to develop character in them. The development should be such that there inner self, there spiritual life can also grow. The collective decisions of these managers will profoundly influence lives and events around the world. The responsibility of the Professional Management

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01

Word Focus “Fear of Recession Gripping The Us Economy Challenger”.No-10, Issue-39, April-June 2008.

02

Tulsi Gopinath “ Does Subprime Mortage Crisis in the US Impact India” An Exploration In The Indian Economic Journal, Volume 56 No-3 Oct-Dec 2008

03

UNews “Vol.63 No-10” Oct 2008,

04

Ramesh Thakur “Rewrite The Rules” In The Times Of India Nov 13,2008.

05

Ripple Effect(Nikhela Henry) “Astrologers make most of global economic crisis”, In The Times of India Nov 23,2008.

06

IANS ‘Highlights of fiscal stimulus package’, In The Economic Times, Dec 07,2008

07

Agencies “G Resolutions companies should Make In 2009 ,The Times of India Jan 5,2009

08

Sarang Darshane “Vikasacha Chirantan Arth Kay”? In Maharashtra Times Jan9,2009.

09

Sudipto Mundle “Forget The Great Depression, In The Times of India Jan 26,2009

10

Agencies “Recession ignites global riots”, In the Times of India Feb3,2009

11

Dr.Sanjiv Late “Jagtik Mandiche Aarishta & Bharatiya Aarth Vyavasta, In, “Aarthboth” Vol 14,No.1 Feb 09,2009

12

Dr.V.K.Pande “Analysis of Global Economic Recession”, In The Annual Report of Marathwada Management Guru: Journal of Management Research


13

14

Economics Conference, Feb 14,15. 2009.

21

Dr.S.Y.Patil “Economic Recession & Black Money In India” Boon or Bane ? In The Annual Report of Marathwada Economics Conference, Feb14,15.2009.

NYT Necos Service “US Recession is very likely over; Bernanke”, In The Times of India “Employment Revival To Take Time, He Says Sept 17,2009.

22

K.V.Rajshekhar “The Green- Collar Job” In,The Week Sept 20,2009.

23

Subhash Kule : Berojgari & Sarakarchya Anastha”,In Loksatta Oct 06,2009.

Nelson D Schwartz “Joblessness Posses Global Threat”, In The Times of India Mumbai Monday Feb16,2009.

15

Saumya Bhattacharya “Job Loss Are You Next”? In The Business Today March8, 2009.

24

Reutars “Recession In America has ended, Says Survey”, In” The Times of India Oct14,2009.

16

Viren Naidu “Recession –Proof your Career,Now!” In The Times of India May 13,2009.

25

AFP “One Billion people going hungry”UN, In The Times of India Oct16, 2009

17

UNews Monthly News letter of the UN information centre, New Delhi. Vol.64 No-6 ,June2009

26

18

R.K.Pachauri “Growth For All”, In,The Times of India June 5,2009.

Observer & EWCA Update “Asia & The Global FinancialCrisis”,EAST-WEST-CENTER, Honolulu. Hawai.

19

Payal Saxena Crimenomics-“Recession causing a spurt in criminal activities”, IN THE WEEK , Aug 30,2009.

20

Dr.A.G.Ravi & M.Sakthivel Murugan “Impact of Economic Recession on BPO Industry: An Overview”, In,The Southren Economist,volume 48,No-9, Sept 1,2009.

27) Websites:- http://en.wikipedia.org/, accessed date 23/ 08/2009 http://www.rbi.org.in /scripts/, accessed date 23/08/2009 http://exim.indiamart.com /economicsurvey08-09/ accessed date 23/08/2009 http:// indiabudget.nic.in , accessed date 23/08/2009

"Do not fly away from the wheels of the world-machine, but stand inside it and learn the secret of work. Through proper work done inside, it is also possible to come out." - Swami Vivekananda (I.115)

"Give me a few men and women who are pure and unselfish, and I shall shake the world." - Swami Vivekananda. (CW Vol - Page - )

"The older I grow, the more everything seems to me to lie in manliness. This is my new gospel." - Swami Vivekananda (CW Vol - 8 Page - 264)

"Stand up and fight! Not one step back, that is the idea. Fight it out, whatever comes. Let the stars move from the sphere! Let the whole world stand against us! Death means only a change of garment. What of it? Thus fight! you gain nothing by becoming cowards. Taking a step backward, you do not avoid any misfortune. You have cried to all the gods in the world. Has misery ceased? ...The gods come to help you when you have succeeded. So what is the use? Die game. ...You are infinite, deathless, birthless. Because you are infinite spirit, it does not befit you to be a slave. Arise! Awake! Stand up and fight!" - Swami Vivekananda (I.461)

A true spiritualist can never be Depressed! His Correct Understanding of the Self & nature of the world keeps him Cheerful & always at rest. - Swami Vivekananda

"Faith and Prayer are invisible but they make impossible things possible. It's God's part to do the wonders, ours is the simplest part to trust & Pray". - Swami Vivekananda

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Building a New City: Tryst with reality Hon'ble Pramod Hindurao Chairman, CIDCO ( Ministerial Status)

In India, the post-independence period has seen several efforts to plan newcities. Prominent amongst them are Chandigarh, Gandhinagar and Navi Mumbai. Amongst these exercises, Navi Mumbai differentiates itself on the count of being a city planned for the ‘Common Man’ compared to Gandhinagar or Chandigarh which are symbols of authority and power.

The plan was categorical in stating that there will be no rich nodes or poor nodes. The emphasis in developing the city was to provide minimally for the affluent few and to promote the convenience of the greatest number. New Bombay would not be another grand city; it will be a city where the common man will like to live. Every New Bombaite shall have a dwelling of his own, however small and if pucca construction is not possible then made of temporary nature.

Planned and built by City & Industrial Development Corporation of Maharashtra (CIDCO), Navi Mumbai has the distinction of being the only city of India that has featured in the National Geographical Channel’s Super Cities of the World Series (2007). However, about 15 years back the scenario was different. The city was woefully short in meeting the targets it had set out for. The Navi Mumbai experiment set-up in a socialistic era seemed to be a floundering one.

The objectives spelt out in the plan were well addressed as the development started on ground. The HUDCO sponsored sites and services scheme in Sector-2 of Vashi Node in 1976 provided serviced sites of various incremental types for a limited 285 units for EWS, but had its heart in right place and was precursor of the World Bank sponsored BUDP scheme. The BUDP scheme (1983-1995) was on massive scale, spread over 6 nodes across Navi Mumbai and provided the city with 22300 serviced sites/Dwelling units. These sites and services scheme brought out enterprise of the citizen thro’ design and construction on their own terms and financial conditions.

In 1960s, Government intervention in land development was to ensure ‘optimum social use of land’. The overarching thrust was to prevent the concentration of ownership of urban land in hands of few people. The development model was one where government acquired land in bulk. Its agency built infrastructure and housing. Housing built by the government was the cheapest per sq. ft. for the smallest units. In this fashion housing needs of the poor were taken care. The capital gains from the sale of land for Commercial use, etc. were to be utilized in financing the next phase of development. The city of Navi Mumbai is based on this model.

In 1987, taking a diametrically opposite approach, the DRS scheme (19500 units) brought in public-private partnership both in design and construction. The skills of 10 national level Architects were out on display in 9 different nodes to design housing units & layouts endowed with Schools, social facilities, playgrounds, etc based on ‘organic chaos’ and to replicate the experience of an individual designing on his own. Similarly, an equal number of private developers weregiven an opportunity to design and build housing schemes. The layouts would have a heterogeneous and equal mix of LIG: MIG: HIG categories and together gave 6500 odd EWS/LIG units. The entire scheme was ‘low-rise high density’, intended to conserve natural environment as much as possible and a valuable example of public-private partnership in Social housing.

The new city which began its journey in 1970 was created as counter-magnet to Mumbai. Spread over 344 sqkm, the state govt. acquired approx. 200 sqkms. of land and gave it to CIDCO, the Corporation specially created for the purpose by the Government. The CIDCO prepared the Development Plan for the city with the tenure spanning for 20 years from 1971. The plan envisaged the city as a series of Nodes (Townships) strung along a Mass Rapid Transit system. Each township would have 1.5-2.0 lacs population.

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The details of housing stock created between 1971

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As a result the Navi Mumbai Central Business District (CBD) never took off. Efforts like the specially designed corporate shifting scheme to CBD did not materialize. Thus the economic base of the city as envisaged could not be put in place and its growth failed to take off.

to 1990 by both CIDCO and private sector are shown in the table below Table no. 1 - Navi Mumbai Housing stock upto 1990 Year

CIDCO

Private

Nos.

Nos.

Percent

Total

Reproduced here are comments of Mumbai based practicing Architect Rahul Mehrotra, which tell about the Navi Mumbai experiment as he saw it in 1997.

Percent

upto 1980

6724

86 1121

14 7845

1981 to 1985

37670

88 5100

12 42770

1986 to 1990

19420

63 11525

37 30945

1971 to 1990

63814

78 17746 22 81560

‘What started as a plan brimming with optimism and clarity was very quickly reduced to a blur of intentions. This is particularly amazing given that at inception, the idea was accepted by the State Government and administration that seemed interested on acting and wanting to prove that effective action was possible.

The NMDP’s objective of building a ‘city of common man’ was indeed approached with full vigour and enthusiasm. The city was fairly successfully in creation of housing for EWS/LIG. Out of the total housing stock created by CIDCO till 1990, 55% was for LIG. Thus the focus was clearly to cater to the needs of the weaker section.

Today, Navi Mumbai in most parts is seen as a landscape of four-storied RCC frame structures that plod relentlessly through the landscape. The rail-link, two decades too late, has arrived upon the landscape, bringing a new ‘gush of energy’ to the urban system.

The highlight of this period being 100% and 70% of housing for the LIG in Koparkhairane and Airoli Node respectively. The dwelling units/serviced lands provided in the Site and Services Scheme in Vashi and The Bombay Urban Development Program (BUDP) all over Navi Mumbai stand as testimony to CIDCO’s commitment to achieve the objectives laid down in the NMDP.

Oversized stations dwarf the surrounding the built environment waiting anxiously for the city to sprout around them, and the CBD (Belapur), a ghost town (barring some government offices) is under the ownership of the Non-resident Indians and indian speculators who wait patiently for the emerging city to cause an appreciation in the prices of the property they own. The Govt. and CIDCO now also speculate on this land to raise finances for the development of physical and social infrastructure.

The growth of the new city however was much slower than anticipated. When 1991 arrived the city’s population was only 5.4 lakhs, far away from the intended target of 20 lakhs. The success of the Plan depended upon many factors, most critical being creation of a strong economic base. A study of the plan period shows that it was here that promises were not fulfilled.

And the State Government locating in Navi Mumbai – an idea on which the original plan hinged on – is a far a reality than it was two decades ago. Infact, it has indirectly even retarded the growth of the new city through CIDCO on one hand attempting desperately to accelerate growth (and property prices) in Navi Mumbai and on other hand ‘regularizing’ laisse faire growth in the North of Mumbai at Vasai and Virar.

The idea to shift State Government to the new city never happened and the city was thus deprived of the catalyst that would have generated self- propelled growth. The Nariman point (Backbay reclamation) continued unabated and potentially 2.50 lac jobs which were to be diverted from the root of congestion i.e. south Mumbai never materialized. The expansion of textile industry and setting up of small manufacturing units in the tip of Mumbai peninsula and congested core of Mumbai continued1. The Bandra-Kurla complex (commercial & office complex) in the suburbs came up with a potential of 250000 office jobs. (MMRDA,1995). Management Guru: Journal of Management Research

Similarly the state government having blessed in the late sixties, the Nariman Point Scheme and now through the Mumbai Metropolitan Regional Development Authority (MMRDA) developing the Bandra-Kurla Scheme – has all added up to drastically slowing down the growth of Navi Mumbai2’.

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The manner and efforts taken in reviving and building the city from a difficult situation deserve a separate narration. Suffice to say, in the past decade particularly the growth has been fairly rapid and the average family income of citizen in Navi Mumbai is nearly two times that of a Mumbai citizen3.

A cursory look at the literature available on Navi Mumbai will reveal that Mehrotra echoed the general sentiments prevailing about the city during this period. The city though was able to overcome this predicament quite successfully. Post 1991, CIDCO took the role of facilitator allowing the private sector to build housing. In late 1990s, the corporation took a review of its existing housing stock and disposed off its unsold/ old units at a discount. It was one of the many measures it took to improve its financial position. In the new millennium, city–scale projects like the Navi Mumbai SEZ, the International Airport, Central park, Exhibition Centre, Golf Course, NRI – Phase II Housing were launched. The huge station complexes were converted into IT Parks. The growth of the city started achieving momentum. The fiscal measures and new projects were in part responsible for the turnaround of the city’s fortunes. However, one of the consequences of this revival was the loss of the focus on the common man so unmistakable in the plan period.

The point being driven home here is planning and building a new city is a tough exercise. Even when bulk land is available on the platter, it is only a starting point. The projections for 20 years are amalgamation of pre-conditions that exist at the time of preparing the plan and forecast of the future as the makers of the plan see it. How the future unfolds vis-à-vis its anticipation made in the plan holds the key to its success. The creation of Navi Mumbai, the inability to meet the targets during its initial period of development and its success later is ample testimony to this argument. The views expressed here are author’s personal. 2 Architecture +Design, Mar-Apr 1997 3 CIDCO’s Socio Economic Survey -2005

"Ask your mind if you are unselfish. If you are, never mind anything, nothing can resist you! Plunge in! Do the duty at hand. And when you have done this, by degrees you will realize the Truth." - Swami Vivekananda (CW Vol - 4 Page - 131 )

"...Fight it out, whatever comes. Let the stars move from the sphere! Let the whole world stand against us! Death means only a change of garment, What of it? Thus fight! You gain nothing by becoming cowards." - Swami Vivekananda (CW Vol - 1 Page - 461 )

"It is the young, the strong, and healthy, of sharp intellect that will reach the Lord", says Vedas. This is the time to decide your future - while you possess the energy of youth, not when you are worn out and jaded, but in the freshness and vigour of youth." - Swami Vivekananda (CW Vol - 3 Page - 304)

"Life is short, but the soul is immortal and eternal, and one thing being certain, death, let us therefore take up a great ideal and give up our while life to it. A far greater work is this sacrifice of yourselves for the benefit of your race, for the welfare of the humanity. What is in this life?" - Swami Vivekananda (CW Vol - Page - III.304)

"Bear in mind, my children, that only cowards and those who are weak commit sin and tell lies. The brave are always moral. Try to be moral, try to be brave, try to be sympathising". - Swami Vivekananda. (CW Vol - 5 Page - 3 )

"...This selling yourself to your own does not befit you, my soul. You are infinite, deathless, birth less. Because you are infinite spirit, it does not befit you to be a slave….Arise! Awake! Stand up and fight! Die if you must" - Swami Vivekananda

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Managing Absenteeism : A Deviance Behaviour at Work Place Dr. S. Ravishankar* and Dr. H. L. Kaila** *Dr.S.Ravishankar is a Senior Management Educator and HRD Specialist. Formerly, he was a Senior Faculty, Ibra College of Technology, Sultanate of Oman. ** Dr.H.L.Kaila is Professor and Head (Retd.), Psychology Department, SNDT Women’s University, Mumbai. Abstract : Absenteeism at workplace, which is deviance behaviour, has become a big concern for organizations all over the world today. Its causes needs to be identified which may be manifold; but corrective measures can be implemented. Absenteeism, in traditional terms, is considered as a specific employee’s unavailability for work, when work is actually available. Absenteeism can fall under many broad categories such as legal (e.g. public holidays), authorized (e.g. approved holidays) and unauthorized (also referred to as casual absence). Unauthorized absence is what most organizations strive to avoid and keep to a minimum. Absenteeism at workplace occurs due to many reasons. It may be either personal or workplace related. Employees with solid work ethics value their contribution to their organizations and do not allow themselves to take unauthorized time off. In contrast, some with a poor work ethic do not carry the same amount of responsibility and do not feel obliged to show up at workplace on all days. If a job is stressful, employees resort to be absent (unauthorized leave) in order to reduce their tension and stress levels. Also when an employee is more dissatisfied with his overall job functions, the more he or she tends to be absent from workplace. A micro-level study was carried out on absenteeism and its reasons, as a sample, and the results are presented as a case example in this paper. Key Words: Absenteeism, Workplace, Counterproductive Behaviour, Deviance.

Introduction – Counterproductive Behaviour

of an organization” (Britt & Jex, 2008). Counterproductive behaviors have a strong negative impact on an organization resulting in ineffective performance.

Managing absenteeism is not easy as it is related with people’s needs and wants. An employee is considered to be absent when there is no physical presence at a given location and time, when there is social expectation for him or her to be there.

Job performance is also an area that is easily affected by such behaviours. Job performance can easily be impacted by both productive and counterproductive behaviors. While a productive employee can encourage another employee to be productive, counterproductive employee can discourage or interrupt and aggravate a productive employee which will negatively impact job performance. Hence, it is necessary to decrease counterproductive behaviours to maintain job performance of the individual and the performance of an organization at highest possible levels.

Counterproductive behaviour is a facet of job performance. The intentional violation of safety procedure is an example of counterproductive behaviours. Some of them are as follows: -

Misuse of organizational information Theft and related behaviours Poor attendance or poor quality work Unsafe behaviour like failing to follow safety procedures Destruction of property Alcohol consumption at workplace or coming to work under the Influence of alcohol Drug use Inappropriate physical actions or physical sexual advances towards co-workers.

The counterproductive behaviours may be classified broadly into two categories, i.e. ‘property deviance’ and ‘production deviance’, as opined by wellknown experts like Hollinger and Clark (1983). The property deviance includes misuse of discount privileges and production deviance involves norms about how work is to be accomplished. This includes not being on the job as scheduled (absence, tardiness, long breaks) and behaviour that detract from production while on the job (like drug and alcohol use, intentionally being slow or doing sloppy work).

Absenteeism as a counterproductive behavior , in many forms as mentioned above, affects the productivity of an organization; and this type of behaviour is “defined as behaviour that explicitly runs contrary to the goals

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The main sources which give rise to counterproductive behaviours are:

Absence rate: Authorised leave + Unauthorised leave x 100

(a) Self-report of the state of occurrence;

However, absenteeism is calculated as: Unauthorised absence Man-shift actually worked x 100

Man-shifts actually worked.

(b) judgements of others, e.g.supervisors; and (c) direct judgements about the rate of co-occurance of counterproductive behaviours.

Absenteeism is one of the individual level behaviour and is linked with a measure of attendance. While virtually every one misses work occasionally, some people miss for more than others.

There are individual and environmental factors that increase the likelihood of counterproductive behaviours at workplace; and this includes interpersonal conflict amongst employees, job insecurity and perceptions of organizational injustice. Proper steps, therefore, needs to be taken to reduce triggers as much as possible by reducing unnecessary stressors, treating employees fairly, and mediating disputes between co-workers.

According to Webster’s dictionary, ‘absenteeism’ is the practice of habit of an absentee; and an ‘absentee’ is one who habitually stays away. In other words, it signifies the absence of an employee from work when he is scheduled to be at work. It is unauthorised, unexplained, avoidable and wilful absence from work. Johns (1997) defines absenteeism as the ‘failure to report for scheduled work’. Martocchio and Harrison (1993) describe it as ‘an individual’s lack of physical presence at a given location and time when there is social expectation from him or her to be present there’. Thus, absence is the logical opposite of attendance.

The prominent contemporary framework for viewing job performance is that of Campbell who offered 8 performance components: 1) Job specific job proficiency 2) Non-job specific task proficiency 3) Written and oral communication

Absenteeism is an objective index, but with imprecise bases for measurement. It is inclusive, as an index for performance appraisal and it can be so pervasive as to threaten the attainment of organizational goals. Researchers classify chronic absenteeism in five categories: (1) entrepreneurs; (2) status-seekers; (3) epicureans; (4) family oriented; and (5) the sick and the old.

4) Demonstrating effort 5) Maintaining personal discipline 6) Facilitating peer and team performance 7) Supervision 8) Leadership and management/administration. Counterproductive behaviours in work settings may in fact have quite different goals. The level of analysis (whether the interest is the behaviour of multiple individuals) is one aspect. The second is the time frame of moving from focusing on a single behaviour at a single point in time to patterns of behaviour over extended periods of time. Crossing these two dimensions creates four combinations: individualsingle behaviour (e.g. was Smith absent today?); individual-extended time period (e.g. what is Smith’s rate of observation over the past year?); aggregatesingle behaviour (e.g. what proportions of the workforce was absent today?); and aggregateextended time period (e.g. what is the average daily absenteeism rate over the past year?).

The two major determinants of absenteeism are: (a) personal variables; and (b) organizational variables. Among the personal characteristics related to absenteeism are age, sex, race, education, office work responsibilities, income and marital status. Age is considered to be a main personal determinant of absenteeism. This is probably because of poor health associated with old age. Organizational variables may include:

While absence refers to ‘staying away’ from work, whether authorised or unauthorised, absenteeism refers to only unauthorised absence. These two dimensions/ rates are calculated by using the following widely accepted methods: Vol.1 (1) August-October 2012

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-

Social and religious ceremonies

-

Maladjustment with factory/company conditions

-

Unsatisfactory housing conditions

-

Industrial fatigue

-

Absence of adequate welfare facilities

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-

Unhealthy working conditions

-

Alcoholism and indebtedness

-

Improper and unrealistic personnel policies

-

Inadequate leave facilities

-

Effect of conflict on performance.

the nature of their jobs. The other outcomes – high satisfaction with work and low absenteeism and turnover can be thought of as attitudinal outcomes. Jobs which result in favourable psychological states should be enjoyable and satisfying, resulting in positive attitudes towards the job. Absenteeism is a major problem in work organizations. There has been consistent debate as to the strength of the relation between job satisfaction and absenteeism. One of the efforts to elaborate job satisfaction– absenteeism

However, eminent researchers like Clegg (1983) pointed out that the other alternative hypothesis to job dissatisfaction which causes more absenteeism was never investigated. This is the idea that the casualty may work the other way; and more absenteeism may lead to greater job dissatisfaction. The suggestion makes sense at the intuitive level. If absenteeism is followed by unattractive consequence, such as supervisory questioning or peer disapproval, wage dispute or having to put in unpaid overtime to catch up, job satisfaction may be reduced accordingly. More recent researchers like Tharenou (1993) have investigated both hypotheses in a logical study of unexpected absenteeism among apprentices in a utility company. The conclusion was that absenteeism uses disapproval. ‘Hypotheses were better predictor than the traditional view’.

relationship was the ‘process model of attendance’, developed by Steers and Rhodes (1978). The model states that work attendance is a function of both ‘motivation to attend’ and ‘ability to attend’. Thus, one may not come to work because of lack of desire to come to work (motivation) and not because one is prevented from coming to work (ability). Therefore, job satisfaction, rather than being the direct cause of attendance, is seen as only one of the factors that determine ‘attendance motivation’. To understand absenteeism, Chadwick, Jones Nicholson and Brown (1982) adapted a new approach, i.e. a social-exchange explanation for absenteeism. They opined that employers will tolerate certain level of absence in return for such behaviour, as loyalty to the company, hard work or innovative ideas .They also suggest that group norms and co-worker expectations concerning attendance play a key role. Some researchers have also observed that there was clear evidence of the positive relationship between stress factor and physical factors such as noise, extreme temperatures and pollution and the stress was in turn related to reduced performance. The relationship between job stress and intention to quit and actual turnover is positive. The greater the stress experienced by the individual/worker, the more likely he/she is to withdraw from the workplace.

Primary causes: The primary causes of absenteeism are psychiatric, but some physical illness like the common cold, migraine, headache, flu, menstrual disturbances, diarrhoea, ankle sprains and back injuries are also the reasons. These are largely unpreventable, but a second home background philosophy and medical support usually keeps them apart from major causes of absenteeism. The degree of autonomy in a job determines a critical psychological state. The more a worker is free to structure, schedule and define his/her job, the greater will be the responsibility felt for the result or outcomes of that job.

Measures to Control Absenteeism

Hackman and Oldham (1976) describe four general results that can be expected where workers experience meaningfulness, responsibility and knowledge of results. The first two of these are high internal work motivation and high quality work performance which can be thought of as motivational outcomes. That is, workers who experience high levels of the critical psychological states will be motivated to perform well, not because of external incentives such as pay, but because of internal motives stemming from Management Guru: Journal of Management Research

Absenteeism is a serious problem for management, because it involves heavy additional expenses. Therefore the following measures are suggested to control absenteeism: z

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Each employee may be required to fulfil the objectives and obligations of the company. Each person is needed every day when he or she is supposed to be present at the workplace.

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z

Employees are expected to stay in good state of health as reasonable as possible.

z

Perfect attendance can be achieved by timely preventive measures against sickness and injury and never allowing minor illness or other minor problems.

z

The supervisor should be capable of detecting irregular attendance quickly and be able to efficiently get to the bottom of the problem in order to rehabilitate such employees before they incur any significant losses to themselves or the company.

they would read either newspaper or novels depending on the availability of time. However, the remaining 27 opined that they had to do the household work. It was observed that the employees who had some leisure activities were satisfied, whereas others found life to be routine and monotonous. 83 % of people did not engage in any other activity besides the job. Research evidence indicates that employees tend to remain away quite frequently. 17 % of employees who were interviewed were engaged in activities like social work during festivals, preparing chocolates and cakes, involved in church activities and as a member of kabaddi committee. It was found that these employees did stay away from work during a particular period of work.

In addition, safety and accident prevention measures by an organization also play an important role in controlling absenteeism as they ensure good working environment and promote regular reporting at workplace. Safety can be maintained if the management tries to reduce and eliminate personal problems such as negligence, over confidence, carelessness, vanity etc. Job satisfaction and cordial relations between the workers and the employers would help to eliminate most of the personal problems. On the issue of tackling hazards to which industrial workers are exposed, the supervisors can ensure proper operational procedures and provide safety instructions in the course of work.

A question on ‘whether they found the job stressful’ was answered. 16 respondents said ‘yes’ and 14 said ‘no’. Research shows that if the employees find the work environment not comfortable, or perceive it as a threat to the physical well-being, then they may stay away from workplace. 33 % were comfortable with the work environment and 67 % did not find them comfortable. One employee opined that the reason she found for the workplace being uncomfortable was that it becomes very crowded in the afternoon. It was also noisy which affected her efficiency. Some employees found it uncomfortable because of small rooms; thus, they found the room congested.

A Case Example

On the issue of criteria of promotion, 46 % responded negatively that they do not have any promotion.

To know the status and causes of absenteeism, a study was conducted in a major hospital at Mumbai. The sample consisted of 30 employees whose nature of work was clerical. Through a questionnaire, employees were personally contacted and purpose of the study was explained. ‘Questionnaire’ was used to find out ‘why people stay away from work’; and the questions were related to work variables and personal variables.

A question was asked as to whether they did the job for the sake of doing it? 33 % opined that they were doing the job for the sake of social work. They felt that they always wanted to do social work. 16 % said that they were doing the job, because there was a necessity and for some it was a financial necessity. Some did the job because they had a motive to socialize.

9 persons out of 30 (30 %) reported that they take 45 minutes to 1 hour to reach the organization. And these were the people who travelled by bus.

Analysing the results obtained on personal variables, it may be concluded that employees who resided at far off places tend to stay away from work.

21 out of 30 (70 %) employees reported that it takes 2 hours to reach the organization as they stay very far and travelled by train. They opined that it affects the work if they don’t get a place to sit in the train. They also felt that they spend a lot of time in travelling and often it becomes quite frustrating.

The second dimension was related to work variables. It could be concluded from the obtained results that the nature of work (i.e. clerical) was not the sole factor to keep employees away from work, because it was their desire to make it a career. It was their need to have a secured job.

A question relating to the leisure activities received good response. Out of 30, only 3 employees said that

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It was also found that if the work environment was not comfortable, then, employees stayed away from work.

The obvious benefits EAP and counselling is the savings in productivity, which results from lowered absenteeism, turnover and accidents.

Factors like promotions and freedom to use new ways were not main determinants for staying away from work.

Conclusion Appropriate organizational measures to control absenteeism play a crucial role in improving the degree of commitment by individual employees and significant improvement in productivity. With an effective formulated policy communicated to the employees, awareness can be created that attendance is carefully monitored and that unauthorised absenteeism or absenteeism without good/justified reason will not be tolerated. The policy needs to mention that all employees must be aware that proper attendance at workplace is a basic requirement; and it is the duty of every employee to know that when an employee accepts employment with the company, he or she acknowledges that attendance at workplace will be daily as required, and it will be for the contractual working hours.

Suggestions at individual and organizational levels Based on the results of the study, at individual level, talking to the staff in small groups, showing the results, asking questions and listening to their thoughtful observations on ‘why things are the way they are’ would help the organization to be more effective. This would improve the relations between the supervisor and his employees. At organizational level, the following measures would be beneficial: z

Creating a clear absence policy in order to bring down the employee absenteeism level. (Ensuring that the policy statements are simple and straightforward before communicating them across all organizational levels).

z

Attitudinal change can be brought about through behavioural training.

z

Training and orientation for staff about not only their duties, but also about the organization in order to foster a sense of “we feeling” among the staff is necessary.

z

Measuring absenteeism regularly, monitoring closely, and treating all employees’ alike vis-à-vis absenteeism.

z

Take into consideration that employees could sometimes need to be absent “casually”, but commit oneself to digging deeper into the reasons behind their casual absence.

z

Recognizing regular and punctual attendance whenever possible and reward it occasionally.

z

Communicating the costs of absenteeism to department heads to develop awareness of it being a serious issue which cannot be tolerated unless a valid reason exists.

z

Moreover, the employee warrants that he will present himself at workplace in a fit and proper condition to carry out his responsibilities. The policy may also state that the management regularly monitors and maintains employee’s attendance records. And if any employee absents himself without a valid or acceptable reason, the employee may be considered guilty of an offense in terms of the Company Disciplinary Code, which may involve dismissal. Designing a clear and comprehensive leave policy in line with the company’s values and objectives will also help in controlling unauthorised absenteeism at workplace. References Britt, T.W., & Jex, S. M. (2008). Organizational Psychology: A Scientist-Practitioner Approach (2 Ed.). New York, NY: Wiley. Clegg (1983).’Psychology of Employee Lateness, Absence and Turnover: A Methodological Critique and an Empirical Study’, Journal of Applied Psychology, 68, 88-101. Chadwick – Jones, J.K., Nicholson, N. and Brown,C. (1982). Social Psychology of Absenteeism, Praeger, New York. Hollinger, R. and Clark, J. (1982). “Employee Deviance: A response to Perceived Quality of the Work Experience.” Work and Occupations, 9 (1), 97-114.

Provision of facilities like employees counselling and employee assistance programmes with the goal of identification and treatment of employees’ problems, either in-home or through external referrals.

Management Guru: Journal of Management Research

Hanebuth, Dirk (2008) “Background of Absenteeism” in K. Heinitz (ed.) Psychology in Organizations - Issues from an applied area. Peter Lang: Frankfurt. p. 115-134.

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Johns, Gary (2007). “Absenteeism” in George Ritzer (ed.) The Blackwell Encyclopedia of Sociology, Blackwell Publishing, 2007.

Nicholson, N.and Payne,R.(1987). ‘Absence from Work – Explanation and Attributions’, Applied Psychology – An International Review, Vol.36, pp.121-32.

Johns G.(1997). ‘Contemporary Research on Absence from Work: Correlates, Causes and Consequences’, in Cooper, C.L.and

Robertson, L.T.(Eds.). International Review of Individual and Organizational Psychology,Vol.12,Wiley,New York, pp.115-73.

Martocchio, J. J. and D. A Harrison. (1993). “To Be There or Not To Be There? Questions, Theories and Methods in Absenteeism Research.” Pp. 259-328, in Research in Personnel and Human Resources Management (Vol. 11) edited by G. R. Ferris. Greenwich, CT: JAI Press.

Steers, R.M. and Rhodes, S.R. (1978).’Major Influences on Employee Attendance: A Process Model, Journal of Applied Psychology, Vol.63, pp.391-407. Tharenou, P. (1993). ‘A Test of Reciprocal Causality for Absenteeism’, Journal of Organizational Behaviour, 14: 269290.

Dr. S. Ravishankar : Dr. S. Ravishankar is a senior management educator and HR specialist with more than three decades of professional experience in PG/MBA level teaching, research and corporate management training. He has worked in NITIE, Mumbai and Management Institutes as senior faculty in India and abroad and in Indian industries. Recently, he was with the Ibra College of Technology, Oman, Abu Dhabi University and Alkharj University, Saudi Arabia. His areas of specialization and current interest include HRM, organizational behaviour, strategic management and international business. He has many publications to his credit. Dr. H. L. Kaila : Dr.H.L.Kaila with three decades of professional experience was formerly Professor and Head, Psychology Department, SNDT Women’s University, Mumbai. Earlier, he was Asstt.Director (Industrial Psychology) at C.L.I. and has many publications to his credit. His specializations include psychology, organizational behaviour, HRD and counselling. He has conducted and participated in many national and international seminars; and has represented India in I.D.E.conference at USA. He is a member of professional bodies like Bombay Psychological Association, Counsellors Association of India, Bombay Psychiatrists Society, etc.

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Management guru aug to oct 2012  

Management guru aug to oct 2012