BY PROF. ANAGHA GOKHALE

MULTI-DISCIPLINARY WORKSHOP

ORGANIZED BY VPMMPCOE, VELNESHWAR

ON THURSDAY 24TH JULY 2014

Background

Ethics is a relative concept.

Neither laws nor ethics are fixed principles

Changes in ethics over time

How do we put our value system to the test? I believe there are only two tests. The ultimate test is called the Mama Test.

Whenever you are doing, whatever you are doing, wherever and with whomever, at home or at work, alone or with someone, if values are in question, ask yourself, "If my mama were to see me doing what I am doing right now, would she appreciate this and say “Good boy!" or would she hang her head in shame?"

Your values would be clarified rather quickly. If you passed the Mama Test and failed all other tests, you have passed.

Remember ………… Saif Ali Khan’s Add

पोलिसाांना नाही तझु्या आईिा फोन करतोय.

Whenever you are doing, whatever you are doing, wherever and with whomever, at home or at work, alone or with someone, if values are in question, ask yourself, "If my children were to see me doing what I am doing right now, would I want them to see it, or would I be embarrassed?“

Again the clouds will clear rather quickly and you will get your answers.

If these two tests don't clarify a person's values, then that person is no longer a human being and has no conscience left.

What do you mean by Ethics?

A set of ◦“Values”◦“Principles”◦ “Morals”◦“Religious beliefs”◦“Rules of conduct” ◦“Social norms”◦ “Laws”

Types of ethics

Personal Ethics –

see video and presentation

Professional Ethics

Business Ethics

Professional Ethics

Suppose, you are a life insurance agent.

Your best friend is fatally ill. They

needed Rs. 10,00,000 worth of insurance

for maintenance of family after his death.

No one knows and no one can find out

that your friend is dying. Would you write

the policy?

Business EthicsTufani Corp., with its head office in Thane, has been in

business since 1951. Its hottest-selling product is a soft

drink, Razi, which has pushed it up to the top five

beverage co.s in the world. In addition to soft drinks,

Tufani produces candies & snack food.

Ms. Pathak has worked for Tufani since 1982 and has

been its Vice President for the past 5 years. She has

lived in most of her life in Thane . Tufani held a senior

mngt. meeting to discuss advertising and selling its

products in the Thane school with its 30,000 students.

The school district is depends on funds from the state

govt. for its increasing revenue needs.

During this time, it added instructional programs for an increasing number of students who come to school with learning problems. In addition, the district’s school buildings are aging and need substantial repairs.

In order to keep up with the times, the district purchased computers and software for all its schools’ classrooms along with up-to-date- technology for the central office. This expense has been controversial in the community. The district is strapped for cash and in danger of having to reduce popular programs and even close a few schools.

The Thane City School District enrollment has gradually declined during the past decade. Its localehas little room for further development; new businesses tend to locate outside the district. Likewise, many people have been leaving to find newer, more affordable, suburban homes. All this has reduced tax revenues to support the schools.

Tufani’s senior management team has prepared a proposal that would give the school district much-needed funds in exchange for exclusive rights to sell their beverages and snacks in school vending machines. This deal also includes the opportunity to advertise products on the district school buses and athletic scoreboards.

Ms. Pathak has a keen interest in education and knows how important more funds are to the school district. However, she is troubled with the ethical consequences of selling to students who are a captive audience. Likewise, she heard from a parent group who argued persuasively that schools compromise their educational mission when they encourage students to be consumers.

What should Ms. Pathak do in this ethical dilemma situation?

How to deal with Ethical dilemma?

1. Define the Problem. What is the ethical dilemma?

2. Gather the Necessary Facts.

3. List Possible Alternative Solutions.

4. Analyze the Consequences of Each Alternative.

5. Recommend a Plan of Action.

Problems

Are commercial sales a justifiable way for schools to gain revenue?

Should schools be involved in the merchandising of products to students?

Is the Tufani Corporation taking advantage of the situation, or is it helping the school district to solve a difficult financial problem?

What message does a school district sent to its constituents or voters when it raises revenue though commercial arrangements?

Facts Given in the Case

Government is providing financial assistance to the school, but it is insufficient

To keep pace with the changing environment, school spent huge amount on infra and computer and software installation.

Tufani corporation a leading beverage company is ready to provide financial assistance to the Thane District School, in exchange for exclusive rights to sell their beverages and snacks in school vending machines.

Parent group is annoyed on this and argued that schools compromise their educational mission when they encourage students to be consumers.

Discussion on Problems

In the new era of privatization the role of Government as a “welfare state” is shrinking. Government has given permissions to private entrepreneurs to establish schools and colleges. The main reason behind this was Government is unable to provide money required for construction of huge infrastructure required for establishment and running of the schools.

But privatization doesn’t mean that to allow a company to do their business in school campus, in exchange of fund provided by them.

Huge expenditures on infra and computer and software installation is justifiable. In competitive era, new skills have to be developed in students to keep pace with changing technological environment.

In point of view society, it is not justifiable to allow commercial sales to gain revenue. It is not advisable that school children should take snacks and beverages in school campus. Food prepared at home is always more nutritious and hygienic for the kids.

On the contrary, due to increase in percentage of working women and change in lifestyle, to take food and snacks “outside” becoming a trend.

Hence, if school allowed any branded company to sale their products in school campus might be justifiable in this angle. The school authority should see that the beverages available in the school campus must be nutritious, safe and alcohol free.

School should not involve directly in merchandizing of products to students. However, the survival of all public schools in the country is on stake and to provide good infrastructure and facilities to students it is essential to generate money from possible sources.

However, merchandizing of products is not a last resort to save district school. The management of the school and local authority who is governing school should look for other alternative sources available to save the school from shut down.

Tufani corporation is a “profit” oriented company and not “Social welfare” company. The School district has 30,000 students which are their probable customers. They have total commercial approach in financing the school district.

Though it is not emotional decision, it will be helpful to improve the school condition.

The parent group is annoyed because of this decision and they argued that school has comprised with their mission by encouraging students to be a consumer.

If we consider both the sides, the school should search for other alternatives. The decision of the school to allow Tufani corporation to sell their products and do advertisement in college campus and on school buses, will adversely affect on moral of the students also. School may gather required amount:◦ From NGOs working in this sector

◦ By starting short term vocational courses

◦ To allow other institutions on rental basis, to conduct courses in school premises in the evening.

Tufani corporation is a well-known company in the market. It is advisable that Tufani corporation should help the school as a “Social Responsibility” i.e. without thinking of commercial gains. This will improve their credibility and recognition in the market and ultimately it will be beneficial for the company in the long run.

Answers to the Problem

As a citizen Ms. Pathak should help the district

school in improving situation without thinking

of any gains to company.

Students are future customers. Hence, it will

be beneficial to Tufani corporation in Long run.

Education to future generation is a

responsibility of all; Parents, Government,

Corporate and Society. Hence, every

constituency should contribute in this mission.

Hence best solution to the problem, is there

must be a collective action by all constituencies

such as Parents, Government, Corporate and

Society to save school from shut down.