Ethics and Values and 2g Scam

Ethics and comfort Management Project Report Table of Content 1. Abstr bet 1. 1 foundation garment 2. honorable Issues 3. estimable Dilemmas 3. 1. Dilemma face by A. rajah 3. 1. 1. character of A. genus genus raja 3. 1. 2. h starst Theories 3. 1. 3. represent and expediency outline 3. 1. 4. pass for closure the Dilemma 3. 2. Dilemma face by Corpo pass judgment 3. 2. 1. Role of Corporates 3. 2. 2 Ethical Theories 3. 2. 3. follow and Benefit analysis 3. 2. 4. Recomm closeation for resolving the Dilemma 3. 3. Dilemma confront by G all(a) overnment 3. 3. 1. Role of Government 3. 3. 2. Ethical Theories 3. 3. 3. Cost and Benefit analysis . 3. 4. Recommendation for resolving the Dilemma 3. 4 Dilemma go about by Media 3. 4. 1. Role of Media 3. 4. 2. Ethical Theories 3. 4. 3. Recommendation for resolving the Dilemma 4. Recommendations for baring recurrence of the issue 4. 1 send off to avoid recurrence of such a scam 5. References 5. 1. Websites 5. 2. Books 1. Abstract 1. 1 . Introduction The2Gspectrumscam baffling politicians and governance formalizeds in India illeg wholey undercharging sprightly phonecompanies forfrequency each(prenominal)ocationlicenses, which they would then use to create2Gsubscriptions forcell phones.The shortf ein truth last(predicate) between the bills salt away and the money that the constabulary mandated to be collected is estimated to be176,645Crore(US$32. 15 billion), as valued by theComptroller and attendee General of Indiabased on3G and BWA spectrum auctionprices in 2010. However, the exact outrage is dis shake offed. The Supreme Court declargond allotment of spectrum as unconstitutional and capricious and quashed all the 122 licenses issued in 2008 during tenure ofA. rajah(then parson for communications & IT) the main official acc utilize in the 2G scam lineament.In 2011,Timemagazine listed the scam at number cardinal on their Top 10 Abuses of Power list. 2. Ethical Issues With the outbreak of the 2G spectru m scam, the following honourable issues on the part of the Government, Regulatory bodies, media and manufacture came into the forefront. * Spirit of collective responsibility non conserved An ethics of co-responsibility is essential and can however be implemented through mechanisms good beyond the legal system. In the 2G scam, almost all of the entire media and country has put the name of Mr A.Raja as the responsible soulfulness for the loadion precisely when the certain decision of telecom insurance was passed through the cabi displace. * Too often index number in pass of original few This is what actually happened in slipperiness of 2G scam. The entire decision qualification power rested in the hands of selected bureaucrats. * Middle men used for access to those in power Middlemen were used to by comp whatsoever officials and new(prenominal) illicit channel to reach the ministers. plenty in power were lured by money. Those who did non bend to the power of mo ney were either transferred or were threatened. Neutrality of media questionable In the2G Spectrum ScamCase, preferably of providing valuable insights, the media is trying to arrest the judiciary. The media has targeted easy scapegoats, revolving their stories around a selected few because even they know that it is effortful for them to target certain braggy name harbingering like the Tatas, Ambanis and Ruias. * Personal greed puts strain ethics at spotRaja was the mas terminal figureind of this whole scam and his individual(a)(prenominal) greed make him do all the corrupt things. The 2 fundamentals of business i. e. cinch dealing and transpargonncy was completely kept aside to lie with the fictitious fruits. * Wrong use of power gos to a great turmoilRaja being the Telecom minister, tried to influence the senior officials of DOT by all means. Those who didnt get influenced were either transferred or removed from their posts. 3. Ethical Dilemmas 3. 1. Dilemma Faced By A. Raja Mr A. Raja was in a dilemma whether he should disclose the name of all(prenominal) main conspirator of the plot, or should he wait for his fellow compeer having a reputed position in the governance and collective world to supporter him get out . 1. 1. Role of A. Raja A Raja has authoritative3,000crore(US$546 million)as bribe for bringing forward the cut-off date for applications for spectrum from the initial 1 October 2007 to 25 September 2007. At the time of fetching decision he might rent got influenced of the dilemma related to it but money do him blind and despite of knowing the risk associated and at the s let in of his personal set, he took the decision of performing the 2G Scam. there was too a percipient conflict of interest among promoters, shargonholders and otherwise s instructholders of alliance.The conflict of public shargonholders and s bowholders put them in very interesting position. There was similarly a dilemma when the case releaseed whi ch was more or less can be termed as the prisoners dilemma as should he tell the names of all the person associated or only few because it was a very high end case consisting of m any(prenominal) noned politicians and bureaucrats 3. 1. 2. Ethical Theories Depending on the dilemma faced by different people in this case there ar different honorable theories that can be applied.Mainly we can prevail 2 theories * Utilitarianism Utilitarianism is a possibility in normative ethics holding that the aright(a) course of pull through is the one that increases utility, specifically defined as tap happiness and reducing suffering. In this theory person compares the bring ins with its toll and take decision accordingly. * Hedonism It is a school of idea that argues that joyousness is the only indispensable good. In very elementary terms, a hedonist strives to maximize net sport (pleasure minus pain).Ethical hedonism is the idea that all people get hold of the right to do ever ything in their power to achieve the greatest amount of pleasure possible to them. It is also the idea that every persons pleasure should far go their amount of pain. 3. 1. 3. Cost Benefit Analysis Going by the theory of utility, A. Raja might produce done the benefit make up analysis as follows Benefits Loss A. Raja call for be getting slews of money A. Raja can be caught, but the chances are very less because in India politicians are never caught With money there volition be power.Moreover he will be a friend of big corporate personalities. Shareholders will get tingeed with this decision The huge benefit of under-pricing or unfair subsidiary was stooln to the mobile telephone function The person who is not a shareholder or customer of any mobile telephony company has sold his share in spectrum on cheap prices and lost his money which would have been spent for the development of his nation The bonus was given to all industry majors, who regularly lobby against th e subsidy to basic human need like food, water, education and shelter. When call rates were high, there would be an exclusion of masses from this information revolution. This is a simple math not a magic formula to fool all stakeholders The huge benefit of under-pricing or unfair subsidiary was given to the mobile telephone services So, he might have found that he can easily escape by doing this scam and chosen to give away the licence at cheaper rate. Going by the Hedonism theory the pleasure that power and money will bring to him will be much more than that of pain so he persuasion of choosing the wrong mode of earning money. . 1. 4. Recommendation for resolving the Dilemma The 2G Spectrum scam is at the final stage. directly as all the politicians, Bureaucrats, Major Telecom company officials have been exposed. entirely if would have followed the following simple tests or models they would have definitely selected the honestly right path and avoided the consequences that fol lowed. * shaft Druckers Model Above all, do no harm. Peter Drucker cute to convey to any individual that if any of his/her decisions harms any other person then that decision is unethical. Raja had thought of this philosophy then he would have avoided his actions and maintained transparency in allocating 2G spectrum. * The giving medication officials would have brought the issue in front of the judicial system if they followed this simple principle. Corporate executives would have refused help from A. Raja as benefit making is ethical but profiteering is not * Warren lashs first page of the4 Newspapers Test If all the people imagined the newspaper headlines that were published all throughout 2010, 2011 and 2012, they probably would have not done what they did.Some examples are included below 1. Court issues key to CBI on A. Rajas 2G spectrum scam plea 2. Why did not PM act on A. Raja SC 3. A. Raja informed Manmohan Singh about alter in policy Siddharth Behura 3. 2. Dilemma F aced By Corporates The basic dilemma faced by the Corporates was whether to abide by the law of the country and hold in the licenses they were capable of scraming in an ethical manner or whether to unethically obtain licenses in order to increase customer base and earn flash lamp profits.On account of Utilarianism, benefits they achieved were that they were able to attain the shares at much lower cost and thereby incurring huge profits and it also thus provided them with an warring edge over their competitors as they were able to outrun them that too in such short duration. Also if they did not buy these licences approximately other companies will buy and attain profits so without considering the harmful repercussions they went on with buying with the licences. 3. 2. 1. Role of Corporates India found itself in the centre of such protests in 2010-2011 over the scam in 2G spectrum allocation to telecom companies.The 2G scam went a vast way to show how the Indian economy, one of the red-hot ripening in the world, is dominated by a small set of tightly connected power players. Industry observers felt that if not checked soon, the constituted problem of crony capitalism in the country could adversely affect Indias growth and development. They wondered how the accountability could be hollowed and the unholy connection broken. The distributive justice states that equal people should be treated equally. There is nothing wrong in, corporate making profits but it should not be at the cost of other people.When the corporates involve in a scam like this, the tax payers are burdened which is not fair. in the long run it is the tax payer, who pays for each Scam. Corporate as a part, of the society has got almost social responsibility which means, they have every right for making profit but not profiteering by harming the society. Their rights should not harm the interest of the popular man. The corporates by involving in the scam are not only rig the common ma n but its own people like its shareholders. foil in the long run pays of great results.Here being ethical should not only an instrumental value to the corporates, but should be an intrinsic value. stemma ethics plays a very important role. th legal barf work may not be always be ethical but here observing the legal standards provides an important ethical dimension. The business values like transparency, fairness and justice are universal. Observing these values as an intrinsic value would benefit the business in the long run. When business is ethically strong, it will have the same impact on its employees. When employees are ethically strong, consumer satisfaction will be high and so the business has to sustain. Corporations involved were Allianz Infra, Aircel, Dishnet wireless, loop mobile, Reliance communications, S Tel, Swan telecom, Tata Tele Services, Unitech Group, Videocon Telecommunications Limited, Vodafone Essar, gross(a) Mobile India. * Corporate Personalities involv ed were Anil Ambani (Reliance Group-ADAG), Ratan Tata, Shahid Balwa (DB Reality and Etisalat DB Telecom), Vinod Goenka (Dinamix Group), Venugopal Dhoot (Videocon Group), and Prashant Ruia (Essar Group). 3. 2. 2. Ethical Theories * Utilitarianism Going by this theory, the corporates involved Utilitarianism i. e. aximising their profits, specifically defined as maximizing happiness and reducing suffering. For them what is good is that which prepares pleasure, happiness, contentment or social welfare and what is right is that which maximizes one or more of these things. Utilitarians call the method for maximizing good the principle of utility and they use the term optimific to describe the achievement of this maximization. The Corporates on their part in order to maximise their profits instantly and in an easy manner went on 2G scandal, without considering the ramifications. 3. 2. 3. Cost and Benefit Analysis Swan Telecom paid Rs. , 537 crore for 2G licences in 13 circles, they soon sold 45 per cent right in this company to Etisalat for Rs. 4,200 crore. Unitech obtained licences in 22 circles for Rs. 1,658 crore and then sold 60 per cent equity in the company to Telenor for Rs. 6,100 crore. Thereby, providing them with instant benefits. 3. 2. 4. Recommendation for Resolving the Dilemma * Peter Druckers model Thou shalt not steal and Primum Non Nocere. Which in English means, above all (or first) do no harm. According to Peter Drucker wanted to convey that an individuals decision is unethical if it harms any other persons.Thus, abiding by the Peter Drucker model to settlement this ethical dilemma involved the corporate personalities involved should have rejected the proposal of marriage offered by A. Raja as achieving profit is fairly ethical but what turned out in this case was profiteering which is unethical. 3. 3 Dilemma faced by the Government In this scene ethical dilemma was on the part of the government after the case got uncovered as it involved ma ny politicians, bureaucrats, & ministers so either to put charge on all of them showing the vulnerable state of the nation or to asseverate a single minister for the same. 3. 3. 1. Role of GovernmentThe list had many well known ministers like Dayanidhi Maran(Union cabinet minister for textiles), P. Chidambaram(Union cabinet ministers for home affairs), Andimuthu Raja (Union cabinet minister for communication & information technology), Kanimozhi Aravindhan (Member of Rajya Sabha) and also many renowned bureaucrats like Siddharhta Behura, Pradip Baijal, R K Chandolia. 3. 3. 2. Ethical Theories * Utilitarianism Going by the this theory, it states that actions and policies should be evaluated on the basis of the benefits and costs they produce for everyone in society and also referred to as consequentialism.It holds that morally right course of action in any situation is the one that, when compared to all other possible actions will produce the greatest balance of benefits over costs f or everyone affected. * Hedonism A school of thought that argues that pleasure is the only intrinsic good. In very simple terms, a hedonist strives to maximize net pleasure (pleasure minus pain). In this context going by the above mentioned theory in order to maximize the net profits its better on the part of government not to disclose anything and spare from the pain that can incur f they do so. 3. 3. 3. Cost and Benefit Analysis In the context of 2G scam the cost and benefit analysis can be done as follows * Cost The major threat was the impact on stock market and enthronement in India. The mobile phone market is the worlds fastest growing making it a must-invest market for any major globose operator but after looking at the corruption take aim and the people involved they might not willing to come over and invest. Moreover it will also shatter the trust factor of the citizens and they will not have any faith in the government. Benefit manifestation of all the names involved in the scam will lead to a situation of distrust. In a globalized world such a situation will negatively affect the Indian corporate scenario and may even jeopardize the economy as a whole. Going by the above mentioned theory it was certainly better on their part to go for benefits and not to disclose any names. 3. 3. 4. Recommendation for resolving the Dilemma To resolve the dilemmas 3 steps can be followed, they are * Step 1 Analyze the consequences Assuming that the resolution to the ethical dilemma is to be found within the confines of law.Ethical dilemma that arise should be resolved at least(prenominal) within the bare minimum of law and legal framework as otherwise it will lead to a sort of mafia business. One has to look at the consequences that would follow ones proposed actions. And when one has several creams to choose from, there will be an array of consequences connected with each of such options, both positive and negative. ahead one acts, answers to the following q uestions will help find the type of action that can be contemplated 1. Who are the beneficiaries of your action? . Who are likely to be harmed by your action? 3. What is the nature of the benefits and harms? (the answer to this question is important because some benefits may be more valuable than others. Letting one enjoy good health is better than letting one enjoy something which gives trifling pleasure. Likewise, some harms are less harmful than others. ) 4. How long or how fleetingly are these benefits and harms likely to exist? * Step 2 Analyze the actions Once option is identified, concentration should be on the actions.Find out how the proposed actions measure against moral principles such as honesty, fairness, equality, respect for the dignity and rights of others, and recognition of the vulnerability of people who are weak, etc. Then there are questions of basic decency and general ethical principles and conflicts between principles and the rights of different people invo lved in the process of pickax of the options that have to be considered and answered in ones mind. After considering all these possible factors in the various options, it is sensible to choose the one which is the least problematic.Step 3 Make a decision After considering all factors that lead to various options, choose an option and analyze it carefully and then take a rational decision. 3. 4. Dilemma faced by Media It is medias business to show the truth to the public, moreover it also considered as a reliable source which helps in creating awareness regarding the actual happenings in the world. The Media persons accused faced the ethical dilemma of whether to diligently follow the duties of a journalist and uncover the real truth or be loyal to their friends. 3. 4. 1. Role of mediaThe 2G spectrum scam, which has snowballed into a major controversy involving Indian politicians and businessmen, became hotter for journalists to handle when it allegedly involved twain of their se nior members. Media sources such as OPEN and Outlook inform that two senior journalists Barkha Dutt ( conclave editor of NDTV) and Vir Sanghvi (editorial director of Hindustan generation) knew that corporate lobbyist Nira Radia was influencing the decisions of appointment of telecom minister. Radia wanted A Raja to be do telecom minister. The two magazines made public the telephone conversations between Nira Radia, Barkha Dutt & Vir Sanghvi.Radias phones were being tapped by the Income Tax Department. Critics allege that Barkha Dutt and Vir Sanghvi knew about nexus between government and the media industry but lull they supported this corrupt activity and suppressed news reporting the baring of the corrupt practice. In November 2010, OPEN magazine carried a story which reported transcripts of some of the telephone conversations of Nira Radia (a political lobbyist) with senior journalists, politicians, and corporate houses, many of whom have denied the allegations.The Central Bu reau of Investigation has announced that they have 5,851 recordings of phone conversations by Radia, some of which outline Radias attempts to broker deals in relation to the 2G spectrum sale. The tapes appear to butt how Radia attempted to use some media persons to influence the decision to appoint A. Raja as telecom minister. Vir Sanghvi, editorial director of Indian national day by day Hindustan Times and Indias television news channel NDTVs group editor Barkha Dutt are apparently featured in the transcripts.They are perceive promising to fix things for Radia, who is known to be close to the sacked minister A Raja, and her clients besides her political cronies. While Sanghvi allegedly took notes from Radia on what he could point out in his weekly Sunday column of Hindustan Times even as Radia asked him to write against Reliance Groups Anil Ambani and the high judiciary decision on the gas pricing issue. Barkha Dutt had allegedly assured Radia of getting ruling Congress partys general secretary Ghulam Nabi Azad to address to the supremo of his partys chief ally in the government M.Karunanidhi to fix portfolios for the ally according to wishes of Karunanidhis daughter Kanimozhi. One thing to be noticed in this case was, initially the news gained prominence following sustained printing press on social networking sites Twitter and Facebook against an attempted memory loss orchestrated by many prominent Indian TV channels and newspaper. Initially, only handful of newspaper like Deccan Herald and The Indian give tongue to wrote about the tapes. Some newspaper like HT Media, mint and NDTV told that the authenticity of these transcripts cannot be ascertained.Not Touching Corporate Biggies Now media is deliberately trying to highlight a few names like those of Shahid Balwa, A Raja, Kanimozhi, Sanjay Chandra, Karim Morani, and Vinod Goenka era not cutaneous senses corporate biggies such as Tatas and Ambanis. It is quite clear that in this 2G spectrum case, o nly a few are conspired to be indicted in the case while others are clearly kept out. Instead of providing valuable insights, the media is trying to become the judiciary.The media has targetted easy scapegoats, revolving their stories around a selected few because even they know that it is difficult for them to target certain big names like the Tatas, Ambanis and Ruias. It is a well-known(a) fact that the trial for 2G Spectrum case is going on, and nobody can be proved guilty unless and until it is proved in judgeship, but, without taking it into account, our media has started blaming people and set off a only few names without mentioning the rest of the suspects. 3. 4. 2. Ethical Theories Utilitarianism If we apply utility theory on media then cost in hide the facts was that people will not trust the media if they come to know that facts were mystical from them but the benefits were that they will not spoil their relations with big politicians and corporate biggies. So benefit s were more than the cost, as it is said that common man has very short memory and you can cheat them. But as pressure started building from opposite party and moreover opposite party had their friends in the media, the names of big politicians came into picture.But then also media maintain its silence on corporate biggies. 3. 4. 3. Recommendation for resolving the Dilemma Laura Nashs model pursual the 12 questions that Laura Nash has raised in her model would have stopped media from taking the first step. Some of the 12 questions that would have helped the accused persons to clear their thought processes are * How would you define the problem, if you stood on the other side of the fence? * To whom and with what are your loyalties? What are your intensions in making this decision? * How does these intentions compare with the likely results? * Whom could your actions slander? 4. Recommendations for avoiding Recurrence of the Issue Modern scams are victimless in that the victims are not obvious. The victims of these annoyances are the taxpayers and citizens of the country to whom this money and assets belong. The only indissoluble way for us to stop scams is to work on both prevention and deterrence. 4. 1. Plan to avoid recurrence of such a scam 1.Increase disclosure requirements by the government on all contracts and concessions involving public money or assets. 2. Improve the metier of parliamentary prudence on government and executive by making parliamentary committees stronger as well as more transparent to the public. 3. It should be ensured that the Criminal Penal code has amendments to deal with and enable rapid vicious prosecution of white collar crimes and scams. Judiciary should be independent and free of any external influence. It should be capable of taking strong action against the corrupt politicians.While severe punishment is given to a poor village officeholder when he takes a bribe of Rs10, politicians who cheat the public and earn crore s are many a time let free by the court of law. 4. There is a requirement of complete overhaul and changes in our criminal justice system that is still designed around petty crime and criminals. There is a need for new and stronger laws for dealing with sophisticated pecuniary crimes of the day. One such example is removing the Section 311 that requires prior sanction from the government to prosecute its officers. 5.Media played a very important role in forming an opinion among the citizens therefore there should be effective parliamentary oversight of the government and such oversights be transparent and available to media and citizens. 6. The government must have outside legal and advisory help while negotiating contracts and not rely only on bureaucrats. There should be a humans of a new cadre of independent regulators, backed by parliamentary statutes that oversee most of these sectors. 7. For example, bureaucrats must be chosen as regulators only in exceptional cases of high integrity and capability.Such Independent Regulators must also have oversight on them to ensure that there is no restrictive capture. 8. Ensure that government policy is always about the public and not about private and personal interests. 9. Legislation must be initiated to fix lobbyists and business chambers, to prevent advocacy changing to corruption and to protect against policy capture instead of policy advocacy. 10. Ensure government policies are not always bombastic rhetoric and full of loopholes for exploitation. This will minimize administrative/political discretion. 1. Another way to stop corruption is to avoid the nuclear fusion form of governance. A single party must be allowed to overlook the country independently without seeking the support of innumerous minor parties. In the 2G spectrum case, the accused, A. Raja is a representative of DMK which is supporting the congress. In such a situation, an able and efficient prime minister like Manmohan Singh could not take action but had to inadvertently support him as otherwise DMK would have withdrawn their support and thus follows an utter rout for the congress.Lastly and most importantly both media and the general public must create awareness that the government is a trustee of public money and assets and the people are the real owners. If trustees violate the trust, people should not sleep, but must react. A permanent solution, thus, to such scams and corruption is alert citizen and conscientious media. 5. References 5. 1. WEBSITES * http//aishmghrana. wordpress. com/2012/09/01/conflict-of-interests-among-stakeholders-in-2g-allocations/ * http//www. icmrindia. org/casestudies/catalogue/Business%20Ethics/Indian%202G%20Spectrum%20ScamExce2. tmCan%20Accountability * http//www. isidelhi. org. in/hrnews/HR_THEMATIC_ISSUES/Corruption/Corruption-2011. pdf * http//www. scribd. com/doc/71816181/2g-scam-project * http//www. processexcellencenetwork. com/process-improvement-case-studies/columns/drucker-on -business-ethics/ * http//en. wikipedia. org/wiki/Radia_tapes_controversy * http//www. slideshare. net/amyberi/2g-spectrum-scam-casestudy * http//realitycheck. wordpress. com/2010/12/03/wheres-our-story-media-on-2g-spectrum-scam-shyness-or-something-more/ 5. 2. BOOKS * Business Ethics An Indian Perspective by A. C. Fernando