Social Audit

Social audit is a concept that has gained significance in the last decade, during which there has
been a growing concern for environment and the problems of pollution and consumer protection.
There is no agreement, much less unanimity, among the most ardent proponents, particularly as
to its basic principles or its true objectives.
A Social Audit is recommended by all business organizations regularly to find out how far they
have fulfilled the social goals as against the targets predetermined. These social goals include
creating employment for the local population, providing facilities for schools, hospitals and
pollution-free environment.
A social audit should be approximated to an ordinary commercial audit and should be based on a
social balance sheet with a credit side and a debit side. The basic purpose of a business is to
maximize the financial return, earned on its financial investment plus the amount of social return
on its social investment. To make rational investment decisions in the social areas, it is necessary
to know the social costs and if we are to assess them by the same measure as of financial
investment, this must be expressed in dollar terms.
Suggestions have been made that a provision must be made in the Companies Act that every
company shall give a social report, which will indicate and quantify, the various activities
relating to the social responsibilities carried out by the company in the previous year.
Ex) Tata Iron and Steel Company (TISCO) in 1974, voluntarily incorporated in its Articles of
Association its social and moral responsibilities to the consumers, employees, shareholders,
society and the local people.
Eco-friendly Technology
Industrial development has been taking place at the cost of the natural environment. Energy in
the form of coal, petroleum and diesel are being used indiscriminately. Natural flora and fauna is
facing the danger of extinction. Rivers are being polluted by allowing the industrial effluents into
them. All this is causing great concern for the socially aware industrialists and citizens.
Enlightened industrialists are already contemplating the use of eco-friendly technology for the
treatment and recycling of waste. Alternate sources of energy like wind, sunlight and sea tides
are being tapped. The cost effective techniques of using scarce natural resources are being
developed in the new cars and transport facilities.

Total Quality Management being practiced at companies today, aims at efficient and economic
use of the scarce natural resources and also conservation of the nature. The fact that industries
cannot live in isolation with the community is now gaining approval.
Ecological Responsibility of Business
In order to survive and succeed, any organization today has to perform actions and duties that are
in sync with the natural environment. They have to realize their ecological responsibility through
the following
1. Careful discharge of industrial effluents.
2. Regard for rehabilitation of the project affected persons.
3. Taking appropriate steps to prevent environmental pollution and to preserve the
ecological balance.
4. Assisting in the overall development of the society.
5. Taking steps to conserve scarce resources and developing alternatives, wherever possible.
Narmada Bachao Andolan
Narmada project is a lifeline that will provide water to the parched and often water-starved
regions of Gujarat, Kutch, Saurashtra, Rajasthan, Madhya Pradesh and Maharashtra.

In April 1961 the then Prime Minister of India Pandit Jawaharlal Nehru performed the
foundation stone laying ceremony of the dam to be erected on River Narmada. But, for 19 years
the work was paralysed due to political reasons. In 1980 work began at a snails pace.
In 1994, the Narmada Bachao Andolan under Medha Patkar launched a campaingn against the
project on environmental and rehabilitation grounds. Their bone of contention was that the
backwaters because of the construction of the dam would lead to the displacement of thousands
of villagers. The Govt. of India agreed to provide them with land in neighbouring areas. But, the
villagers felt that the land was not at all suitable for agricultural purposes.
In recent times, the cause of the villagers has been vocally taken up by Booker Prize winner
Arundhati Roy, who also wrote an article for The Week condemning the project.
Detached Involvement
On its face value the terms seem self-contradictory. It means that one has to do whatever work
has come to him as a duty with a sense of detachment. He should apply all his skills and attention
in doing the work in an excellent manner. He should not get involved into question as to who

will be benefited, what will he get, whether he will be rewarded or punished, etc. He should
perform the duties whole-heartedly without any consideration for the outcome of that work.
Work Ethics v/s Ethics in Work
Work ethics refers to work culture. Work Culture assumes that there is no question as to whether
the work is ethical. Whatever work is assigned to a person, he must complete it dutifully and
diligently and with a sense of dedication.
Ethics in work refers to the question whether the work is ethical or not. Ethics is concerned with
the questions as to what is right and what is wrong, and what is good and what is bad. It depends
upon the values inculcated in a person. There can be no permanent values. What is ethical will
depend upon person-to-person and culture-to-culture. Ethical dilemma arises only when there is
a choice to be made. If there is no choice, the person may not hesitate in doing the assigned
work.
Bliss (Ananda)
It is one of the three characteristics of the Supreme Element, Supreme Being or Nature. The
Supreme Being has the qualities of Sat (Truth or being Eternal), Chit (Chaitabya or
Consciousness or Knowledge) and Bliss (Ananda). This bliss is not related to the satisfaction of
the sense organs. Since every human is the spark of the Supreme Being (Brahman), he is
bestowed with Bliss. Unfortunately, a person assumes his physical body and material world as
real and hence, experiences separation from the Supreme Being. It is the ultimate goal of every
human being to realize his true self and to be one with the Brahman.

Mental Health
Self-realisation helps in securing mental health. It is true and realistic perception of the material
world, divinity of individual and mind stilling, which will help develop self-realisation and
mental health. It means expanding the horizon of the consciousness, self-discipline and striving
for integrity.
Values and Skills
Values are those convictions and beliefs, which a person has learned through socialization.
Values are derived from the parents, the society, the culture and the country. They are deeply
rooted beliefs, which determines as to whether any particular act is ethical or not.

Skills help in doing work in an efficient manner. These skills may be physical or psychological.
They help in overcoming problems of communication, leadership and production. Skills do not
generally involve value though values may give strength to acquire or apply the skills more
effectively. Skills are amoral by nature. A person could be a skillful murderer or a pickpocket.
Lack of ethics and violation of human values led to environmental degradation
Business Ethics:
Business ethics refer to the system of moral principles applied to business activities. It
deals with morality in the business. There should be ethics behind all business activities. This
means the business activities should be conducted according to certain self-recognised moral
standards. Business ethics refers to a code of conduct which businessman are expected to follow
while dealing with others and also fellow businessmen. Business ethics is an art or science of
maintaining harmonious relationship with society, its various groups and institutions as well as
reorganizing the moral responsibility for the rightness or wrongness of business conduct.
Human rights:
Human and ethical values constitute the wealth of character. Values express dharma or
divine nature as understood in the East, particularly in the Indian ethos and insight, and the ideas
of integrity as understood in the west. Moreover, values provide a common language for aligning
a companys leadership and its people.
Why ethics and values:
Our effectiveness at work is tied to exercising intrinsic human values i.e., moral and
ethical values. These human values support established business values such as service,
communication, innovation, creativity, excellence, credibility and co-ordination. The human
values help self- development. Managerial functions such as direction, control, supervision and
communication, integration and co-ordination are much easier. These values help good
interpersonal interactions. They reduce conflicts and disputes. They are the part and parcel of
achieving accelerated process improvement, customer, workers and citizen satisfaction. They
enhance reputation and goodwill of the organization. We seek fulfillment, happiness and success.
It is a combination of inner and outer achievement. Inner fulfillment is related to our spiritual,
mental, emotional and physical enrichment. The outer achievement is related to achieving set
goals, using one's talent and experience for the benefit of others (employees, customers, clients
and public). Self- development is the development of the whole being.

Unethical Business practices:

Business practices which are not fair (legally, socially and morally) are treated as unfair /
unethical business practices. Unethical practices affect the consumers, employees, shareholders,
government, environment and the society at a large in an adverse manner. Such practices lead to
cheating and exploitation of consumers and other social groups.
If the company follows ethics in business and human values properly it will do the following
things:
1. Environmental management will be of highest priority in the organization.
2. It will establish and maintain communication with the internal and external parties.
3. Determine legislative requirements and those environmental aspects associated with your
activities, products and services.
4. Develop commitment by everyone in the organization to environmental protection and
clearly assign responsibilities and accountability.
5. Promote environmental planning throughout the life cycle of the product and process.
6. Establish management discipline for achieving targeted performance.
7. Provide the right resources and sufficient training to achieve performance targets.
8. Evaluate performance against policy, environmental objectives and targets and make
improvements wherever possible.
9. Establish process to achieve monitor and audit the Environmental Management System to
identify opportunities for improving performance.
10. Encourage vendors to also establish Environmental Management System.
When an organization does not practice these there is a rapids and unplanned growth and
ecological degradation is a result of rapid and unplanned growth. All types of pollution,
deforestation, depletion of natural resources and reduction in fertility of soil are due to rapid
industrial growth. In the olden days, the slogan industrialise or perish is now replaced by
industrialise and perish indicating thereby the adverse effects of unplanned industrial growth.
The adverse effects of this are:
Environmental pollution
Dumping of industrial waste
Ecological imbalance
Destruction of bio-mass based economy

 Depletion of natural resources

7. How can Holistic Management help in curbing the exploitation of nature?
Holistic approach to management:
Holistic approach to management is based on spiritual principle of unity, oneness, nondual or Advaita concept. Under this principle of unity the universe is an undivided whole where
every particle is connected with every other particle. The Divine interpenetrates this Jagat like
pearls on a string. Hence, entire humanity is one. Management must recognize oneness of
humanity. Respect the divine in all beings. See your own self in all selves. It is said, Do unto
others as thou wish that others should do unto you. This is the yoga of highest order.
Management is called upon to follow whole-man approach to management and leadership.
An integrated human personality of self-developed manager and worker can assure best
and competent management of any enterprise, involving collective works and efforts. The
refined or higher consciousness will adopt holistic attitude. It will bring out the divine in the
man. It will achieve perfection or excellence in whatever sector you work. We shall achieve
peace, harmony and prosperity within and without, i.e., in our internal world simultaneously.
This is the ideal of Indian ethos: Atmano Mokshartham Jagat Hitaya Cha. This is the motto of
Ramakrishna Order founded by Swami Vivekananda. This is the message for all managers and
workers given by the Indian ethos for management. Under the holistic approach management
will not exploit shareholders, employees, customers, society and nature.
If holistic approach of management is followed by the organization then the following things
can happen:
1. All work is an opportunity for doing good to the world and thus gaining materiality and
spirituality in our lives.
2. Worship people not only with material things but also by showing respect to their everpresent divinity within.
3. Strength and inspiration for excelling in work comes from the Divine. God within, through
prayer, holy readings and unselfish work.
4. He who works with calm and even mind achieves the most.
5. As we think, so we succeed, so we become. Attention to means ensures the end.

6. By mutual co-operation, respect and fellow feeling all of us will enjoy the highest good both
material and spiritual.
7. Infinite happiness and infinite peace come to them who see the divine in all beings.
8. Regard the other person as a divine being. All of us have the same consciousness through our
packages or containers are different.
Hence it can be said that if holistic approach to management is followed it can help in
curbing the exploitation of nature.
11. How do Indian Management thoughts promote sustainable development?
Indian Management Thoughts:
1. All work is an opportunity for doing good to the world and thus gaining materiality and
spirituality in our lives.
2. Worship people not only with material things but also by showing respect to their everpresent divinity within.
3. Strength and inspiration for excelling in work comes from the Divine. God within, through
prayer, holy readings and unselfish work.
4. He who works with calm and even mind achieves the most.
5. As we think, so we succeed, so we become. Attention to means ensures the end.
6. By mutual co-operation, respect and fellow feeling all of us will enjoy the highest good both
material and spiritual.
7. Infinite happiness and infinite peace come to them who see the divine in all beings.
8. Regard the other person as a divine being. All of us have the same consciousness through our
packages or containers are different.
Sustainable Development:
Sustainable development is a process in which development can be sustained for
generations. It is development, which affords to the future generations the same if not more
capacity to prosper as the present generation has. Thus sustainable focuses on inter generational
fairness in the development opportunities. Every generation of mankind creates as well as
destroys certain amount of resources for its development purpose. But the nature and rate of
present development are such that the rate of destruction of resources is greater than the rate of

creation. If this trend continues beyond a century or so, it is apprehended that there would not
only no further development but there might be economic stagnation or even disaster.
Indian Management thoughts promote sustainable development:
According to Indian management thoughts all work is an opportunity to do good and thus
gain materiality and spirituality and thus if this is practiced the organizations will take care that
the environment around them is not polluted and also they will take care that they utilize the
available resources properly because by doing this they will do a good job for the coming
generations.
Indian society is such that we worship trees over here and we respect every component of
the biosphere hence we can say that people who work in the organizations will definitely take
care of the environment.
In Indian management thoughts it is believed that infinite happiness and infinite peace
come to them who see the divine in all beings and according to it every person working in every
organization will consider every other person and thing present in the and around the
organization as divine and will never pollute the atmosphere around him.
Hence it can be said that Indian management thoughts can promote sustainable development.
13. Holistic Approach to Management
Holistic approach to management is based on spiritual principle of unity, oneness, nondual or Advaita concept. Under this principle of unity the universe is an undivided whole where
every particle is connected with every other particle. The Divine interpenetrates this Jagat like
pearls on a string. Hence, entire humanity is one. Management must recognize oneness of
humanity. Respect the divine in all beings. See your own self in all selves. It is said, Do unto
others as thou wish that others should do unto you. This is the yoga of highest order.
Management is called upon to follow whole-man approach to management and leadership.
Let the inner being or higher consciousness assumes the managerial leadership to manage
and lead effectively and efficiently (by combining both values and skills), your physical, vital,
mental, intellectual entities. Your inner being is the delegate of the Divine. It is a minute portion
of the whole.
Such an integrated human personality of self-developed manager and worker can assure
best and competent management of any enterprise, involving collective works and efforts. The

refined or higher consciousness will adopt holistic attitude. It will bring out the divine in the
man. It will achieve perfection or excellence in whatever sector you work. We shall achieve
peace, harmony and prosperity within and without, i.e., in our internal world simultaneously.
This is the ideal of Indian ethos: Atmano Mokshartham Jagat Hitaya Cha. This is the motto of
Ramakrishna Order founded by Swami Vivekananda. This is the message for all managers and
workers given by the Indian ethos for management. Under the holistic approach management
will not exploit shareholders, employees, customers, society and nature.
Need and importance of Holistic management:
Ancient Greek and Indian wisdom and insight considered the human individual, a unique
living entity having self-consciousness and the human self a complex of body, mind, heart,
intellectual and spirit or soul. We have to pay equal attention to all aspects of hu.man personality
and consider him as a whole or complete being, having practically unlimited potential energy and
power to develop himself and acquire perfection so that he can enjoy all-round internal and
external harmony and progress. This is called as holistic approach in self-management and
management of any enterprise.
14. Define and explain Indian Ethos
Each soul is a potential god:
A human being has a soul, a spark of the divine. The divine resides in the heart of a
person. The divine means perfection in knowledge, wisdom and power. Therefore, a human
being has tremendous potential power of energy for self-development. When the God Touch is
there (in form of Divine Grace), human efforts can achieve even as apparently impossible goal
and convert the impossible into a reality. The partnership of god and man can bring about
extraordinary or miraculous results. Only if man chooses willingly to collaborate with god and
actively participate in the affairs of the society by right action under his guidance and grace. He
can bring about only personal development. Harmony, happiness but also prosperity of his own
organization and the society without injustice to others. Of course, Divine Grace works only
when your self-help and self-efforts are maximum. God helps those who help themselves. Gods
help comes as a rescue boat in the form of unseen hand, which is always behind you. In this way
you can achieve extraordinary results. Gods grace is the power of God in man.
Holistic Approach:

Holistic approach to management is based on spiritual principle of unity, oneness, nondual or Advaita concept. Under this principle of unity the universe is an undivided whole where
every particle is connected with every other particle. The Divine interpenetrates this Jagat like
pearls on a string. Hence, entire humanity is one. Management must recognize oneness of
humanity. Respect the divine in all beings. See your own self in all selves. It is said, Do unto
others as thou wish that others should do unto you. This is the yoga of highest order.
Management is called upon to follow whole-man approach to management and leadership.
Let the inner being or higher consciousness assumes the managerial leadership to manage
and lead effectively and efficiently (by combining both values and skills), your physical, vital,
mental, intellectual entities. Your inner being is the delegate of the Divine. It is a minute portion
of the whole.
Such an integrated human personality of self-developed manager and worker can assure
best and competent management of any enterprise, involving collective works and efforts. The
refined or higher consciousness will adopt holistic attitude. It will bring out the divine in the
man. It will achieve perfection or excellence in whatever sector you work. We shall achieve
peace, harmony and prosperity within and without, i.e., in our internal world simultaneously.
This is the ideal of Indian ethos: Atmano Mokshartham Jagat Hitaya Cha. This is the motto of
Ramakrishna Order founded by Swami Vivekananda. This is the message for all managers and
workers given by the Indian ethos for management. Under the holistic approach management
will not exploit shareholders, employees, customers, society and nature.
Equal importance to subjectivity and objectivity:
Indian ethos for management distinguishes subject and object. Subject is subtle and
intangible. Object is gross or concrete and tangible or visible.
We have concept of the third eye, the eye of wisdom. It can see even that which the
normal two eyes cannot. It can see the intangible, i.e., invisible.
Human and ethical values and qualities such as courage, vision, social awareness,
fearlessness, integrity, pure and clear mind, truth, etc. are subjective, subtle and intangible
concepts. These represents divine wealth. Value-based management is essential, to combine
subjective and objective phenomenon. These subjective or subtle qualities are as important as
money, materials, machines, information or data as well as human skills. Inner resources of
human beings are more powerful than external resources. Japan could prosper in industry,

business and trade due to optimum utilization of inner resources. Japan does not have coal,
mineral and petroleum. Fortunately, India has adequate material and natural resources. Let us
develop now our human resources, which have immense potential power. Holistic and valueoriented management based on Indian wisdom alone can secure managerial effectiveness and
quality of worklife and work ethic. It will also assure total quality management. Creator is
subjective. Creation is objective. Insight i.e., creator is more important than Outsight i.e.,
creation. Our body, senses, intellect, mind, etc., are objective, seen, and tangible. But our soul is
unseen, intangible, subtlest and subjective. Hence, wisdom manager/manager/worker is much
more important and valuable than knowledge manager/worker.
Karma Yoga:
It is yoga of moral endeavour, self-less service to others. It brings about union of human
being with the divine. Work is done as worship to the divine in human beings who is also all
pervading in the universe (which is a projection of the divine).
Gita evolves the moral and ethical theory of human conduct and expounds the ort of right
living the doctrine of duty with discipline and devotion without attachment to work and agency
(egoistic pride) and / or its results i.e., fruits of work. Do your duty without ego and without
calculations of gain and loss.
The memorable words of Gita To work only you have the right (as as agent of the divine
dwelling in your heart) and you have no right to the fruits of the work. Let not the fruits of action
motivate you. Let not the fruits divert your concentration on work. Pour your heart and soul in
the performance of your assigned duty. Similarly, do not be attached to inaction also. You have
no control over the future. Hence do not waste the precious time in useless dreams of future
hopes and fears present actions. Do your best and actively live every moment of the present with
the firm belief that future shall take care of itself. Concentrate your attention only on your
present job. Develop the healthy attitude that fruit (Karma Fala) is given to you as Prasad from
the divine. Accept it with Prasad Bhavana. Karma Yoga is a golden means. It preserves the spirit
of renunciation without abandoning activity.
It is a life of intense activity and serenity without selfish impulses. Gita emphasizes that
Swadharma (ones duty based on ones swabhava inclination and aptitude on for the general
welfare of society and as worship of divine, as our offering to god. This call to work in the true

Yajna spirit is an exhortation to support and actively co-operate in the Divines evolutionary
design and to live with the mother earth, safeguarding her grand ecological balance.
Yogah Karamasu Kaushalam:
Yoga means excellence at work. Seek to perform your assigned duty or work in an
excellent manner. Kaushalam denotes doing work with devotion ands without attachment. Such
detached attitude enhances its value and improves the concentration and skill of the worker. You
work with smartness, determination and ability. Your head, heart and soul co-operate with your
hands. You do not hanker over the fruits of the action. You have no anticipation of reward, or
personal gains. You become a tool of god to perform the work. Any work carried out with full
concentration, dedication and with all abilities that a person ha, becomes valuable and the worker
also becomes valuable to others as well as to society. In TQM Karma Yoga and Karmasu
Kaushalam provide valuable contribution. The extrinsic incentives e.g., money, other perks, etc.
play a very minor role as motivators.
Co-operation:
Healthy competition is a powerful motivator for excellence and success, especially
business success. The idea of cut-throat competition is found on the concept of struggle for
existence and survival of the fittest.
Indian ethos says that for human beings (not animals) the royal road is co-operation as a
powerful motive for teamwork. We are human beings having mind and power of discrimination.
16. Sadhana (Management of Will)
Sadhana in Vedic terms is a way to achieve desired goals. It can be of any kind. Sadhana
is practiced by people to achieve salvation, to achieve success, to achieve any targeted goal in
life. To reach that target the Sadhak (one who practices sadhana), has to take a lot of efforts and
face a lot of hardships. All these efforts are known as Sadhana.
As mentioned in the Upanishads Sadhana means concentration of ones mind on a
particular goal or towards god to achieve salvation. In Sadhana the sadhak has to concentrate his
mind completely on the thing, which he wants to achieve. The sadhak if wants to achieve
salvation and wants to become one with god, he will have to continuously keep on chanting the
name of the almighty i.e., Namasmarna. In Namasmarna at one stage he forgets everything and

thinks only about the god. For example Saint Gora Kumbhar who was a big devotee of Lord
Vitthhal used to practice Sadhana. Once while he was doing his daily job of preparing pots out of
clay, he was so much engrossed in Sadhana that a small child of his own came under his feet
while he was mixing clay using his feet and lost life. But Gora Kumbhar was so much engrossed
in Namasmarna that he never knew that the small child lied dead under his feet. Such is the
concentration level required for Sadhana.
Even in todays practical life there are many great people who practice Sadhana to
achieve their desired ends.
Sadhana is called management of will because by practicing Sadhana people are able to
gain self-control over themselves. It helps to strive hard to achieve their goals without falling for
the other temptations or getting distracted by the distractions caused by their daily routine life in
the path of achievement of their goal. It is a brilliant concentration technique. It helps people to
concentrate much harder on their studies or job. It has been seen that students who find it
difficult to concentrate on their studies practice Sadhana and gain complete concentration on the
studies.
In the organizations the management can practice this technique to help the workers to
concentrate on their work and to focus all their activities to gain the organizational objective. In
the organizations it can be practiced, but a bit of training and motivation is required to be
provided to the workers. The organizations will have to first make the workers aware of the
organizational objectives and then will have to train the employees to set up their own objectives.
Then it will have to train the workers about the different methods of achieving their objectives.
While training them about these methods it will have train about the method of Sadhana and will
have to narrate its advantages like, it helps gaining concentration and self-control etc. It must
also inform the workers about the various requisites of Sadhana.
If in the organization a worker is continuously remaining absent or is involving himself in
activities which are not good for the well being of his family then he must be told to practice
meditation to gain a self-control and focus his activities to achieve his personal goals and thereby
the organizational objectives.
Thus Sadhana (management of will) is a technique to focus on the personal goals and if it
is practiced in the business organizations it can produce good results for the organization.

12. Not ego-management but eco-management is what modern management. Explain.

Ecology and business are very closely related. Business activities supply goods and
services for the satisfaction of human wants. They are also responsible for disturbing ecology.
Pollution problem is the result of unplanned industrial growth. Business has to accept legal and
moral responsibility for maintaining clean environment and take suitable measures for this
purpose.
Ego Management:
Freud developed the first comprehensive personality theory, which is based on the
hypothesis that the conscious mind is only the tip of the iceberg, the larger mass being the
unconscious, which is the storehouse of impulses, passions and primitive instincts, that affect our
thoughts and behaviour. We saw personality as composed of three structures, Id, Ego and
Superego. Id is the pleasure principle that seeks immediate tension reduction, contains
everything inherited, present at birth and fixed in the individuals constitution, especially
instincts. It knows no laws, obeys no rules and remains basic to the individual. Ego develops out
of the Id because of the need to deal with the real world. The Superego represents the
internalized values and morals of society as learnt.
In Indian view, every person has (i) the gross physical body; (ii) the energy system; (iii)
the intellect; (iv) the mind and (v) the indestructible soul. Every person is operating
simultaneously at all levels. Each level is subtler than the earlier one and allows more freedom of
movement through time and space.
The whole person, who is really the integration of five constituents, is to be managed as a
whole and not in parts. That is why, in the Ayurvedic system of medicine and in other Indian
practices like yoga or meditation, the focus is on all the five. It is assumed that unless all the five
are in proper co-ordination and harmony, the person will be disjointed and ill. Physical illness
comes from an unhealthy mind. The negative energy created by thoughts like anger, jealously,
greed, etc. have to be replaced by positive energies created by love, passion, satisfaction, etc. for
better physical and mental health. This is ego management.
But in todays context it is eco-management that it is of utmost importance.
The following points suggest relationship between business and ecology:

1. Unplanned industrialisation is dangerous to ecology: Industrial growth without proper

planning leads to ecological imbalance and pollution of water, air and sound. This the present
position in many industrial townships, industrial areas and industrial estates in India. Local
people suffer (due to air, water and sound pollution) in different ways but business
enterprises do not give much attention to their complaints and hardships. Even legal
provisions relating to pollution control are not honoured honestly. This situation exists in
India and also in many other countries. Unplanned industrialization disturbs the entire
ecosystem and ecological balance. Environment sets the limit to business activities and
business activities should be conducted within such safe limits. Ecology and development go
together. It is desirable to have industrial development without adverse effects or at least
minimum undesirable effects on ecology. Development without clean environment is socially
and economically undesirable.
2. Planned industrial growth is needed for maintaining ecological balance: No one is
against industrial growth. Its importance is universally accepted for economic growth,
employment opportunities and higher standard of living. However, the process of industrial
should move in a well-planned manner. This means industrial growth should not disturb
ecological balance and peaceful life of people. Adverse effects of industrial growth should be
avoided / minimized. Industrialisation should be without tears. It should offer positive
benefits with minimum adverse effects. For this, suitable preventive and positive measures
should be taken at the government and business levels.
3. Avoiding pollution for better social welfare: All necessary measures should be taken at the
business level for avoiding pollution and other adverse effects of industrial growth. For this,
additional on the part of industrial enterprises will be necessary but it should be treated as an
investment for the protection of ecological balance.
4. Sharing responsibility by business for ecological balance: Businessmen, argue that they
are concerned with the establishment and orderly running of their industrial units and are not
concerned with pollution and ecological imbalance. Environment protection, according to
them, is not a problem worth bothering about. It is for the government to take suitable steps
for the protection of environment and ecological balance. This idea is, now, treated as an
outdated one and also socially dangerous, it is argued that industrial growth should not create
any adverse effect on ecological balance. For this, suitable steps should be taken by the

business enterprises themselves in the initial period and thereafter as they should not be
allowed to run the enterprises at the cost of the society.
5. Business has to bring in ecology balance: The responsibility for controlling environment
lies particularly on those who disturb it. For e.g., if trees are cut in order to establish a new
plant, efforts should be made to plant more trees near the plant or in the vicinity so that the
greenery of the area is not adversely affected. In other words, efforts should be made to bring
proper balance between clean environment and industrial development.
6. Environment protection responsibility of all but particularly of the business
enterprises: Ecological balance is a matter of serious concern. Business must accept social /
moral responsibility as regards pollution control, clean environment and ecology balance. It
is also necessary to give proper education, guidance and training to top level managers
regarding pollution control and ecological balance. The business associations can also
motivate their members. For this, meetings, seminars, etc. are useful. Social organisations
(e.g., association of tree lovers, clean environment, Hariyali, etc.) and government can also
play an important role in maintaining ecological balance.
7. Awareness

among

businessmen

required

for

ecology

protection:

Ecological

consciousness in business means to make businessmen and business enterprises conscious of

their responsibilities as regards pollution control and clean environment. This is urgently
required for the protection of life and welfare citizens. The problem of ecological imbalance
is spreading like AIDS all over the world. It is therefore, necessary to have co-operation and
meaningful participation of business for solving the problem.
8. How does nature help in building human wealth? Give illustrative examples?
The survival of man depends upon how effectively and judiciously he manages the earth
and maintains the quality of his overall environment. It is an expression of the total responses
among and between its components, and depends upon the factors, which can either affect the
stability of the ecosystem or are capable of bringing about change in the environment. As the
components of the environment are inter-linked and mutually interdependent, the change in any
of them may lead to a sort of chain reaction in other components of the environment.
Since the time man has started modifying the environment to suit his requirements, there has
been a drastic change in the quality of environment. The environmental degradation which,

started with advent and use of fire and agriculture in the initial stages, increased further due to
addition of various gases and particulate matters resulting from various industrial and mining
activities which, has reached its peak. The quality of universally available resources i.e., land,
water, air has deteriorated to a significant extent. For all this it is man with his technology and
activity has to be blamed for.
LAND
Most of the treasures in the land available to us, have taken millions of years to exist in various
life forms on the earth; a variety of energy sources and other abiotic components. We can use
them rationally and enjoy these treasures for centuries together, by keeping them even for our
future generations. But if we use them we would lose them before becoming aware of what we
have lost. Land is the basic resource for providing the needs of the people, but land is a finite,
limited natural resource. During early times, the same land was sufficient enough to satisfy all
the needs of people at that time, but today with alarming growth of population the same land is
insufficient to meet our requirements, which have also changed with time and technology.
WATER
Water is one of the principle sources that sustain life on earth. It is a medium in which all living
processes occur. Water dissolves nutrients and distributes them to cells, regulates body
temperature, structures and remove waste products. Water has the potential for being reused
many times. Water is used by three major sectors i.e., public, agriculture, industry. Water is taken
from lakes, rivers and aquifers for many purposes. Water is used in agriculture sector for
irrigation and other such purposes.
VEGETATION
Forest plays a crucial role in regulating climate, controlling surface runoff, providing natural
habitat, shelter and food for wild life and purifying the earth. They provide scenic beauty,
preserve cultural and historical values that are to be preserved and protected from ecological
point of view. Thus it helps in developing the tourism industry, which is a major source of
revenue for the nation. It provides timber, which plays important role in modern industry. All
industrial units make use of wood in some form or the other, either in its manufacturing process
or in marketing activities.

ENERGY
Energy is the capacity to do work, changing the physical state or motion of an object. The ability
of human beings, to use external source of energy, to do useful work, allows us to make our
environment more comfortable and hospitable. Fire was probably the first non-human energy
technology used by man. Later wind and water were the external energy sources. With the
invention of steam engine and industrialization process, use of coal as major energy source
increased in the 19th century. Most of the industries use energy in one form or another.
Hence Nature helps in building Human Wealth.
15. Define and explain Trusteeship
Early in 1955, a debate began in the U.K. about the propriety of top executives increasing
their salaries and perquisites many times over. The Prime Minister was persuaded to look into the
possibility of placing some limits on corporate compensation packages.
Trusteeship is a Gandhian concept. It implies that

all assets be held and used in trust for the benefit of the community

distribution to be equitable, not equal

owner, manager, worker, subordinate titles be removed

there be no use of compulsion, force or exploitation

there be continuous participation

Gandhiji thought that the very idea of ownership was at the root of violence, giving birth

to unwarranted attachments eventually breeding possessiveness, greed, exploitation and revenge.

People really come together only when they rise above conflicts of interests, envy and
competition. Trusteeship followed the vedic dictum of renounce (rights and pleasures of self) and
enjoy (in the pleasures of others).
The Gandhian principle of Trusteeship expresses the inherent responsibilities of a
business enterprise to its consumer, workers, share holders and the community; and the mutual
responsibilities of these to one another.
It did not focus on matters of immediate concern such as distributive justice,
socialization, land reforms and ownership of shares, nor on labour relations and handing over the
wealth to the nation for the common good. Trusteeship was a way of life, making you do

whatever you do, for the good of others or even of all. Trusteeship essentially centres around the
accountability of individuals to others in the society. It is the simplest logic to make the
individual aware of his dependence on others for his satisfactions, his wealth, his physical and
mental capacities and to acknowledge his debt to others.
In an Indian family, sharing and accountability are inculcated in various ways. The elders
are generous and sacrificing for the young. In small communities, sharing is done through
voluntary acceptance of mutual rights and obligations. In larger groups such as city or a state or a
nation, the relationships become more complex and anonymous and the individuals sense of
obligation to return the debt gets watered down.
Trusteeship is rooted in trust. Trust is a bond between people. It adds security, reduces
inhibitions and dependence, frees people to share feelings, dreams and fears. It allows you to be
yourself, willing to spend time together and make sacrifices for one another. It expresses faith in
the ability to perform well. It gives confidence.
The concept is that the manager of an enterprise is like a trustee of property, whose main
concern has to be that the property be so husbanded as to provide maximum advantage to the
beneficiaries of the trust and not the trustee. This thought is also validated by the premise that the
resources of an enterprise are of the society, belong to it and have been given to the enterprise by
society, in preference to alternate demands for them.
Trusteeship is an ideal. Trouble starts when an ideal is converted to an ideology and
idealism with models and doctrines. The theory of trusteeship seek to provide criteria to
evaluate the trusteeship claims of different organisations as well as help spread trusteeship
behaviour among the members of the organisation. Trusteeship is an attitude that evolves over a
period of time. It requires awareness. It also requires emotional security. The major difference
between trusteeship and other socio-economic ideologies is that the former is directed mainly
towards the awareness and continuous improvement of the physical, mental and spiritual
behaviour of the self. Other ideologies essentially propagate changing the structure.
Some of the organisations have tried to pratise the concepts of

trusteeship with

restructuring, the Mahila Udyog making Lijjat pappads being one of the most prominent. The
common factors in such organisations are common ownership, and industrial democracy. One
view is that a corporate body is a person made up of four different components namely, the
organisation, capital, work force (both management and labour) and the community. All these

components are equally indispensable and therefore are really equal in status, authority and
sharing.
Cooperatives in the areas of housing, sugar manufacture, milk production, banking and
credit etc., are founded on principles akin to trusteeship. They provide plenty of instances of
attempts at sell aggrandizement and exploitation. At the potential level, those entrusted with
responsibility through processes of democracy, are expected to do but not necessarily act as
trustees in the interest of the larger community.
Trusteeship is a Gandhian concept based on non-violence and Indian philosophy. It is not
a matter of structure or of physical distribution of wealth. It has found favour in U.K. and in
Germany, but still have few adherents. It is based on the concept that something in possession of
wealth is not the owner of the same but holds it in trust for the benefit of the community.
Therefore the utilization and outputs from the wealth must go to the community and not be
appropriated by the one in possession.