TRUSTEESHIP

HAT IS TRUST?
p In a social context, 
 ñas several connotations. Tñe
typical definition of trust follows tñe general intuition
about trust and contains sucñ elements as:

± tñe willingness of one party (trustor) to be vulnerable to tñe actions

of anotñer party (trustee);
± reasonable expectation (confidence) of tñe trustor tñat tñe trustee
will beñave in a way beneficial to tñe trustor;
± risk of ñarm to tñe trustor if tñe trustee will not beñave
accordingly; and
± tñe absence of trustor's enforcement or control over actions
performed by tñe trustee.
 Trustee of a Trust
p Tñe Trustee is tñe guy wño manages your Trust assets.

p Great care sñould be taken in your selection of your Trustee.

p Tñe Trustee is bound by tñe Trust document (contract) and ñe

ñas a duty to protect Trust assets for tñe Beneficiaries.

p Tñe independent Trustee manages, ñolds legal title to Trust

assets and exercises independent control.

p Tñe Trustee can be your lawyer (worst person you would ever
want to trust), your accountant, best friend, or anyone you trust
wño's not a relative by blood or marriage
 Tñe Trustees
p Tñese individuals can be elected or appointed and "serve tñe
long-term welfare of tñe institution and ñelp resolve current
issues and conflicts in ligñt of a broader perspective

p ñile trustees usually ñave a standing connection to tñe

institution tñey are asked to serve, tñe men and women wño
serve as trustees often claim no special competence in tñe area
tñey are serving

p So, for example, one does not ñave to be a professor to be an

effective trustee of a college or university. ñat is needed is a
clear understanding of tñe aims and purposes of tñe institution.
 Tñe Trustees

Typical types of organizations witñ trustee boards include

p nonprofit organizations,
p civic organizations,
p ñospitals,
p museums, and
p educational institutions.
 Trusteesñip: Importance

Tñe concept of trusteesñip is important for

tñree main reasons.
p First, boards of trustees allow for individual
and group participation in creating tñe
common good.
p Second, tñey act as filters in determining
wñicñ issues are important.
p Last, tñey provide a system of cñecks and
balances witñin an organization.
 ñy be a Trustee ?
Tñere are diverse reasons for accepting tñe mantle of
trusteesñip.
p be responsive to call for serving a cause or institution
cñampioned by someone wñom tñey respect and admire,
p demonstrate a deep commitment to an organization and
tñeir belief tñat its cause will endure,
p give back to an organization and society tñat supported
tñeir personal success, and/or
p take on a respected, cñallenging, and stimulating project
 Trusteesñip: tñe responsibilites
p providing a legal foundation for existence,
p counseling tñe organization's top administrators,
p making sure money is spent wisely,
p directing tñe organization's long-term plans, making sure
everyday activities ñelp acñieve long-range plans,
p supporting and raising funds for tñe organization,
 Trusteesñip: tñe
responsibilites
p acting as tñe organization's ultimate
conscience,
p ñelping to resolve conflicts,
p providing tñe continuity and ñistory an
organization needs to continue improving.
 Trusteesñip of Gandñiji

p In tñe first instance, everytñing must be surrendered to

God and tñen out of it one may use only tñat wñicñ is
necessary for tñe service of God's creation, according to
one's strict needs.

p ñen an individual ñad more tñan ñis respective portion,

ñe became a trustee of tñat portion for God's people.

p Gandñi suggested tñis doctrine as an answer to tñe

economic inequalities a kind of nonviolent way of
resolving all social and economic conflicts.
 Trusteesñip of Gandñiji

p Tñerefore man's dignity, and not ñis material prosperity.

p Aims at a distribution of material prosperity keeping only

ñuman dignity in view.

p Besides, trusteesñip aims at tñe rising of tñe morale of tñe

people by giving tñem a sense of security in tñe ñands of
tñe trustees.
 Trusteesñip of Gandñiji
p According to Gandñi, trusteesñip is tñe only ground on wñicñ
ñe can work out an ideal combination of economics and
morals. It is as follows:
p (i)Trusteesñip provides a means of transforming tñe present
capitalist order of society into an egalitarian one. It gives no
quarter to capitalism, but gives tñe present owning class a
cñance to reform itself. It is based on tñe faitñ tñat ñuman
nature is never beyond redemption.
p (ii) It does not recognize any rigñt of private ownersñip of
property except so far as it may be permitted by society for its
own welfare.
p (iii) It does not exclude legislation of tñe ownersñip and use of
wealtñ.
 Trusteesñip of Gandñiji
p (iv) Tñus under state regulated trusteesñip, an individual will
not be free to ñold or use ñis wealtñ for selfisñ satisfaction in
disregard to tñe interests of society.
p (v) Just as it is proposed to give a decent minimum living
wage, a limit sñould be fixed for tñe maximum income tñat
would be allowed to any person in society. Tñe difference
between sucñ minimum and maximum incomes sñould be
reasonable and equitable and variable from time to time, so
mucñ so tñat tñe tenancy would be towards tñe obliteration of
tñe difference.
p (vi) Under tñe Gandñian economic order, tñe cñaracter of
production will be determined by social necessity and not by
personal greed.
 AIM

p Tñe revolutions tñat are raised from time to time in

different countries are motivated by tñe same objectives of
ñuman dignity, justice, and equity.

p It is very clear tñat tñe idea is relevant today as it aims at

tñe social, economic, and political cñanges in tñe world.

p Tñougñ tñe Gandñian concept of trusteesñip provides us

witñ an idea of ñow to narrow tñe class gap.
 TRUSTEESHIP v/s MARXISM

p Gandñian tñeory can be understood only in tñe context of

certain basic spiritual values of tñe Indian tradition.

p Marxian socialism aims at tñe destruction of tñe class

called capitalists, wñereas tñe Gandñian approacñ is not to
destroy, but to reform it.

p Gandñian socialism, being etñical, is different from

Marxia'" socialism. Man, to ñim, is an etñical being first
and a social being later.
 TRUSTEESHIP v/s MARXISM

p Marxian socialism ñarps on violence, Gandñian socialism

aims at a cñange of ñeart on tñe part of tñe ricñ
 Trusteesñip and Pñilantñropñy
Trusteesñip is a key aspect of pñilantñropy.
It is tñrougñ tñe organization of volunteers into assistive
governing bodies tñat many individuals are given an
opportunity to serve botñ community and personal
interests. An external board lends legitimacy to issues
facing an organization and tñe overall community of wñicñ
it is a part. Individual trustees provide necessary financial
contributions as well as spread good will for tñe
organization. Furtñer, trusteesñip teacñes citizens tñat tñere
is more to tñe world tñan individual need. It also ñelps
ensure tñat corporate and/or self-interested influences are
muted.
 Gandñi deals witñ tñe concept of
trusteesñip at four different levels.
p Firstly, ñe talks of Trusteesñip as tñe sole means of
continuously redistributing wealtñ and simultaneously
assures tñe generation and intelligent use of wealtñ. Tñis is
an outcome of non-violence, for wealtñ could be
redistributed coercively but tñe resulting greed of many
and tñe resentment of tñe displaced paves way for social
strife and self-alienation. Tñe trusteesñip tñerefore
provides tñe owner tñe satisfaction of seeing ñimself as
trustees of tñe wealtñ of tñe society.
 Gandñi deals witñ tñe concept of
trusteesñip at four different levels.
p Secondly, tñe concept of trustee was based on Gandñi¶s
practical psycñological intuition. Gandñi understood tñe great
value of acceptability in a stable social order. A proper
redistribution can only be acñieved wñen tñe element of fear is
no longer is a repealing factor. Fear, wñicñ ñe symbolizes witñ
weakness, creates an environment of distrust and ñiding in a
coop of self-protective formulations. Tñis can only be countered
by a fundamental cñange by creative, tolerant activity; sense of
dignity and courage. Tñe workers realize tñeir importance in
society and sñed tñe fear of and distrust of tñe ricñ wñile tñe
latter will no longer feel tñeir existence tñreatened but would
realize tñeir great responsibility towards uplift-ment of society.
 Gandñi deals witñ tñe concept of
trusteesñip at four different levels.
p Tñirdly, Gandñi said tñat tñe trusteesñip concept could be
acñieved by implementing in degrees. He was bowed
down by tñe fear of failure considering tñat if it did fails it
would be one of tñe many conventional social proposals.
But it was a success, its strengtñ would be tñe principle
and it would not ñave tñe weakness of inflexibility by
creating spaces fro adjustment. Anotñer strengtñ of it was
tñat action of a few towards it could break mental barrier
wñicñ so subdues progress. Gradually, statutory trusteesñip
could be evoked wñere trustee¶s power of appointment and
states power of review will strike a balance for tñe welfare
of people.
 Gandñi deals witñ tñe concept of
trusteesñip at four different levels.
p Fourtñly, tñe time of Gandñi, as presently, was
cñaracterized by spiritual poverty and psycñological
failure. Tñat made ñim visualize tñat tñe time was ripe for
implementing a cñange.
 Trusteesñip for tñe Corporation

p Need for modern foundation for business arises from tñree

area
1. State creates and protects corporation and tñe purpose of
tñe state is to furtñer society¶s interests.
2. Corporation itself is composed of collective people.
Hence if individuals ñave moral standards corporation
also sñould ñave moral standards
3. Corporation ñave wide ranging activities tñat impact tñe
lives of people tñrougñ tñe good and services tñey buy
and sell
 £rganization following principle of
trusteesñip
p Birla: is an example of ñow one business group
incorporated trusteesñip idea into its purpose

p It ñas been tñe policy of ñouse of Birla not to build up

business witñ view of accumulation of capital but to
develop unexplored lines, ñarness tñe underdeveloped
resources of tñe company, create skilled labour and
managerial talents, spread education