BUSINESS ETHICS Mahatma Gandhi philosophyTrusteeship model Seven social sins 1. 2. 3. 4. 5. 6. 7.

Politics without principles Wealth without work Commerce without morality Knowledge without character Pleasure without conscience Science without humanity Worship without sacrifice WHAT IS TRUSTEESHIP Trust is a fund or asset created to specific purpose. A wealthy person may set aside some funds for specific purpose and appoint an trustee to manage it and make sure that the benefits are made available to the specific beneficiaries. The beneficiaries are mentioned The trustee is entitled to take a fee for his services. He is expected to take care of the fund on his own but he must not take advantage of the fund for his personal benefit. Trusteeship of gandhiji In the first instance, everything must be surrendered to God and then out of it one may use only that which is necessary for the service of God's creation, according to one's strict needs When an individual had more than his respective portion, he became a trustee of that portion for God's people. Gandhi suggested this doctrine as an answer to the economic inequalities, a kind of nonviolent way of resolving all social and economic conflicts. Therefore man's dignity, and not his material prosperity . It aims at a distribution of material prosperity keeping only human dignity in view Besides, trusteeship aims at the rising of the morale of the people by giving them a sense of security in the hands of the trustees Ideal combination of economics and morals Trusteeship provides a means of transforming

the present capitalist order of society into an egalitarian one. It gives no quarter to capitalism, but gives the present owning class a chance to reform itself. It is based on the faith that human nature is never beyond redemption. It does not recognize any right of private ownership of property except so far as it may be permitted by society for its own welfare It does not exclude legislation of the ownership and use of wealth. Thus under state regulated trusteeship, an individual will not be free to hold or use his wealth for selfish satisfaction in disregard to the interests of society. Just as it is proposed to give a decent minimum living wage, a limit should be fixed for the maximum income that would be allowed to any person in society. The difference between such minimum and maximum incomes should be reasonable and equitable and variable from time to time, so much so that the tendancy would be towards the obliteration of the difference. Under the Gandhian economic order, the character of production will be determined by social necessity and not by personal greed Gandhi s view of trusteeship was based on the belief that we do not really own our wealth but are only trustees of it, meaning that we have to administer our wealth for the benefit and betterment of the community. In the trusteeship model, wealth does not automatically go to the family members but only to those who can function as its trustees. Thus, this idea of trusteeship challenged the fundamental principles of a capitalist society JRD adopted this framework and implemented it in a practical way within the While there are many aspects to trusteeship in its ideal Gandhian form, the fundamental concept of trusteeship is about equity and sustainable growth. When viewed from this lens, a Trusteeship approach puts emphasis on reconfiguring social and business structures so that people feel both individually empowered and inclined to act in the common interest Some of the key tenets of trusteeship that are applicable today Surplus Wealth needs to be kept in trust for the common good and the welfare of others. To fully adapt the concept of trusteeship, a non violent approach needs to be adopted. Everything that we do must be economically viable as well as ethical at the same time making sure that we build sustainable livelihoods for all. Economic equality through trusteeship will thus ensure

an equitable distribution of wealth amongst all. Absolute trusteeship is unattainable but if people behave as trustees then we can develop institutions that are economically viable, yet benign Trusteeship in today s corp. and CSR If we examine the role of business in this context and apply the principles of Trusteeship to today s corporations we can devise a new way of integrating social responsibility within the DNA of the business. This will ensure that our companies no longer need to set up CSR departments to showcase our efforts, instead CSR will be built into everything we do. Relevance of Gandhian perspective The Gandhian perspective is more relevant today than it was ever before. Gandhi wanted to ensure distributive justice by ensuring that business acts as a trustee to its many stakeholders and specified that economic activities cannot be separated from other activities. Economics is part of the way of life which is related to collective values. Relevance of Gandhian perspective Gandhi said, True economics stands for social justice, it promotes the good of all equally including the weakest and is indispensable for a decent life. This has implications at macro economic level and micro level, as it talks of equitable distribution of wealth being a measure of success, rather than the current form which has high income disparities. It also builds the case for CSR being embedded within the business values of the private sector as Gandhi clearly states that distribution of wealth is not about charity but about ensuring basic human dignity. Solutions to many of the challenges of the 21st century: 1. Sustainable consumption consume what is enough for your needs without doing harm to others. 2. Utilization of natural resources in a sustainable way you are a trustee and you need to take care of what has been freely provided by nature. 3. Dignity of labour and equitable distribution of wealth wealth alone is not the answer, to feel happy you need to ensure that the people who work for you and society at large is taken care of. 4. Sustainable livelihoods and not charity are a key to ensuring human dignity, growth and satisfaction. TRUSTEESHIP v/s MARXISM

Gandhian theory can be understood only in the context of certain basic spiritual values of the Indian tradition. Marxian socialism aims at the destruction of the class called capitalists, whereas the Gandhian approach is not to destroy, but to reform it. Gandhian socialism, being ethical, is different from Marxian socialism. Man, to him, is an ethical being first and a social being later. Marxian socialism harps on violence, Gandhian socialism aims at a change of heart on the part of the rich