ROLE OF GANDHIAN PHILOSOPHY IN

REDESIGNING THE BUSINESS ETHICS

Vijay Kaliraman1, Sonu2
1
Assistant Prof. (Extn.), 2 Assistant Prof. (Extn.), Department of Commerce, Govt. College Hisar,
Haryana (India)

ABSTRACT
The present study attempts to examine the role of Gandhian Philosophy in Redesigning the Business Ethics’.
Indian Trade and Commerce Industry have experienced radical changesbecause of dynamic nature of national
and global environment with new challenges in terms of economic and social withthe diffusion of small and
medium sized business units. This analysis also provides interesting insights on how a developing country like
India accepted the Gandhi Philosophy in setting their Business ethics e.g.
 Gandhian Philosophy of Wealth Management
 Gandhiji’s views on labour management relations.
 Gandhiji’s principle of Trusteeship.

Keywords: Wealth Management, Labour Management Relations, Trusteeship.

I. INTRODUCTION

Today many businesses are involved in the social action. A decision as to whether companies should extend
their social involvement requires a careful examination of the arguments for and against such actions. Certainly
society‟s expectations are changing and the trend seems to be lesser social responsiveness.In a public survey of
Harvard Business Review, mostrespondents considered social responsibility for the business. In Webster‟s
Dictionary, Ethics is defined as “the discipline dealing with what is god and bad and with the moral duty and
obligations.Corporategovernance must take consideration of ethical values and social responsibility in Gandhian
way.
Major frauds
 Data or information theft or IP infringement.
 Fraud by senior management.
 Conflict of interest.
 Corruption and Bribery.
 Vendor or suppliers fraud or kickbacks.
 Regulatory non-compliance.

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II. OBJECTIVES OF THE STUDY

 To Study the relationship between Gandhian Philosophy of Wealth Management.

 To study the relationship between Gandhiji‟s views on labour management relations.

 To examine the Gandhiji‟s principle of Trusteeship.

Wealth
Management

Gandhian
Philosophy

labour
Trusteeship
management

III. TRUSTEESHIP MANAGEMENT

Gandhian Philosophy of Trusteeship, by trusteeship we mean the position of trust as applicable to the corporate
world defined as the managing and holding the resources by boards of directors and other top level executive‟s
on behalf of the stakeholders i.e. equity and other shares holder of the firm in other wordsthey act like an agent
of investors .Gandhian Philosophy of wealth management is based upon the „Servodaya‟ principles of Truth,
Trusteeship and Non-Violence; wherein class harmony between labour and management have sovereign power.
According to Gandhiji, proprietors and boards of directors of business firms are only acts as trustees of wealth
of society. This idea of trusteeship recommended strongly by Gandhiji,its origin and based uponTheBhagaved
Gita-in the principles of „aparigraha‟ (non-possession) and „Sambhawa‟ (equalism) which were followed by
Mahatma Gandhi in an ardent manner. Unlike the Utilitarian motto of „greatest good of the greatest number‟
known as Teleology, Gandhiji‟s motto was „greatest good of all‟.

IV. GANDHIJI’S VIEWS ON LABOUR MANAGEMENT RELATIONS

My idea is that financeand labour must supplement and help each other in harmony they both should be a live
like great family living in harmony and unity;management shouldnot only looking to the material welfare

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i.e.salary, wages, social securities and industrial safety of the labourers, with moral welfare also. The capitalists
being trustees of the welfare of the labour classes‟.Gandhiji‟s views on labour management relations.Gandhiji
assigned a paternalist role to management. They should be obliged to perform with morality in their dealings
with labour.According toGandhiji the trade unions to be instrumental forworkers‟material, moral and social
development and empowerment. they should be more focused on labour welfare .according to Gandhijiji a strike
is an inherent or constitutional right of the worker for the purpose of securing justice and liberty,.Gandhiji
purposed Satyagraha if conflicts arises between management and labour .they must not considered a crime or
mis trust and capitalists and labour should accept the principle of trusteeship. Gandhiji‟s principle of
Trusteeship
Trusteeship principle is foundation of philosophy of wealth management

V. PRINCIPLES OF TRUSTEESHIP

Individual has no right to individual property because Resources must be utilizedand held for the societal
benefits. Management of business has fiduciary relations with stakeholders and they must work towards
optimizingstakeholder value, not merely maximizing shareholder value.They should also focus on social welfare
and should have focus on environmental issues also.
In case of industrialist it‟s there moral responsibility,whatever they produce .that should be decided by social
necessity and responsibility with fuller utilization of limited resources and not by personal whimsor an impelling
force or strength. Duty of the Workers to co-trustee with the management.If theywork with collaboration and
harmony with management. Thoughthe wealth and assets of a company belongs to its owners of business
(various classes shareholder‟s),with respect to moral principles they belongs to society and community.

VI. INDIAN CORPORATE LEADERS AND TRUSTEESHIP

particularly from Indian first generation entrepreneurs and former CEO and current chief mentor of infosys,
Mr.NarayanaMurthy his contentment with a mere 7% of company share (he prefers it that way) and support
towards trusteeship belief and trust.for the better sharing of wealth in society) creating a company along with a
small group of people, through ESOPs reaffirms the involvement of employees in the company‟s fortunes.
With a help of targeted corpus fund of Rs.100 crore“WIPRO Cares” Foundation providingprimary education to
children who are not enrolled to schools ; Birla foundation also promoting social welfare. With its focus on
Social & Economic Responsibilities of Business.socio-economicand change in the living standards or lives of
the people touched by corporation.

VII. CONCLUSION

Gandhi‟s wisdom and search for peace for a better world is reflected in most international and regional
instruments.He calls upon to promote both social, economic progress and better standards of life and larger
freedom, reaffirms faith in fundamental human rights, in the worth and dignity of the human life and the equal
rights of men and women or gender equality. M. K. Gandhi came across to seven social sins during his lifetime
on of them is Commerce without Morality.Mahatma Gandhi had established the credibility by his actions

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through examples of god governance and the world followed his ideology. Mahatma Gandhi was someone who
was stubborn andHave strong principles of righteousness.

REFERENCE

[1.] Harold Kontz& Heinz Weihrich, “Essentials of management” Fifth edition, Tata McGraw-Hil
[2.] Saul W. Gelerman, “Why „God‟ Managers Make Bad Ethical Choices” HavardBusinessReview (July-
Aug1986), p85-90
[3.] Howard R. Bowen, “Social Responsibilities oftheBusinessman,” New York: Harper& Brothers 1953
[4.] Waber, “Institutionalizing Ethics” 1981
[5.] Stephen R. Covey, “Principle Centered Leadership,” Simon & Schuster Ltd., West Garden Place, Kendal
Street, London
[6.] Mohandas Karamchand Gandhi, “Harijan,” 9 October 1937
[7.] Fraud and Corporate Governance: Changing Paradigm in India, Ernst & Young 2012
[8.] Representations of Social Responsibility Vol.II edited by David Crowther/RenuJatana.
[9.] www.mkgandhi.org

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