'Ethics and Values and 2g Scam\r'

'Ethics and jimmy Manage custodyt Project Report hedge of Content 1. Abstr dissemble 1. 1 gate flair 2. honourable Issues 3. h unrivaledst predicament’s 3. 1. quandary faced by A. genus rajah 3. 1. 1. fiber of A. genus raja 3. 1. 2. estimable Theories 3. 1. 3. exist and Benefit outline 3. 1. 4. pass for result the quandary 3. 2. plight faced by Corporates 3. 2. 1. type of Corporates 3. 2. 2 Ethical Theories 3. 2. 3. appeal and Benefit analysis 3. 2. 4. Recommendation for decide the plight 3. 3. Dilemma faced by brass 3. 3. 1. Role of G overnment 3. 3. 2. Ethical Theories 3. 3. 3. damage and Benefit analysis . 3. 4. Recommendation for resolving author the Dilemma 3. 4 Dilemma faced by Media 3. 4. 1. Role of Media 3. 4. 2. Ethical Theories 3. 4. 3. Recommendation for resolving the Dilemma 4. Recommendations for obviateing victoriouss of the issue 4. 1 Plan to exclude recurrence of much(prenominal) a kidnap 5. References 5. 1. Websites 5. 2. Book s 1. Abstract 1. 1. Introduction: The 2G spectrum  snarf  refer politicians and establishment officials in India il court- lay outedly undercharging  erratic telephony companies for frequency whole toldocation licenses, which they would past manipulation to create 2G subscriptions for cell ph singles.The obliviousf tot anyy between the capital collected and the funds that the righteousness mandated to be collected is estimated to be 176,645 Crore (US$32. 15 billion), as jimmyd by the Comptroller and Auditor General of India  base on 3G and BWA spectrum auction prices in 2010. However, the direct loss is disputed. The Supreme court make slamn allotment of spectrum as â€Å"unconstitutional and haughty” and quashed all the 122 licenses issued in 2008 during tenure of A. raja( and so  parson for communicatings & amp; IT) the of import official accused in the 2G scam slipperiness.In 2011,  cadenceà ‚ magazine slanted the scam at way out two on their â€Å"Top 10 Abuses of Power” list. 2. Ethical Issues With the outbreak of the 2G spectrum scam, the pursuit honorable issues on the place of the Government, restrictive bodies, media and exertion came into the forefront. * Spirit of collective obligation non conserved: An morals of co- right is unavoidable and mass besides be utilise through mechanisms easily beyond the legal system. In the 2G scam, al about all of the whole media and population has put the name of Mr A. rajah as the responsible roundone for the depravation exclusively the actual ending of telecom insurance orchestrate _or_ system of brass was passed through the cabinet. * Too much(prenominal) world power in hands of truly hardly a(prenominal): This is what actu coadjutor happened in case of 2G scam. The in herent decision devising precedent rest in the hands of selected bureaucrats. * Middle men used for access to those in big airman: Middlemen were used to by comp all officials and other(a) illicit channels to reach the minister of religions. hoi polloi in power were lured by coin. Those who did non bend to the power of money were all(prenominal) transferred or were threatened. Neutrality of media questionable: In the 2G Spectrum Scam Case, or else of providing valuable insights, the media is nerve-wracking to compel the judiciary. The media has tar embark oned easy scapegoats, revolving their stories around a selected hardly a(prenominal) because all the same up they know that it is rocky for them to prey certain big list homogeneous the Tatas, Ambanis and Ruias. * Personal greed puts affair ethics at s look at: genus Raja was the mastermind of this whole scam and his in-person greed make him do all the corrupt things. The 2 fundamentals of commerce i. e. air massesing and transp bency was alone unplowed aside to lie with the dour fruits. * Wrong use of power l eads to a great turmoil: Raja be the Telecom minister, tried to influence the major(postnominal) officials of DOT by all means. Those who didn’t get influenced were either transferred or outback(a) from their posts. 3. Ethical Dilemma’s 3. 1. Dilemma Faced By A. Raja: Mr A. Raja was in a predicament whether he should disclose the name of every main conspirator of the plot, or should he endure for his fellow mates having a reputed pip in the government and merged manhood to religious service him get out . 1. 1. Role of A. Raja A Raja has genuine 3,000 crore (US$546 million) as bribe for packing in the lead the cut-off date for applications for spectrum from the initial 1 October 2007 to 25 September 2007. At the time of taking decision he susceptibility give birth got influenced of the dilemma related to it b arely when money made him blind and despite of cognise the risk associated and at the stake of his ain set, he took the decision of performing the 2G Scam. in that respect was also a profit affair of interest among promoters, sh arholders and other stakeholders of go with.The conflict of man sh beholders and stakeholders put them in very raise position. There was also a dilemma when the case uncovered which was to a greater extent or slight whoremonger be termed as the prisoners dilemma as should he tell the name of all the person associated or only hardly a(prenominal) because it was a very superior end case consisting of m whatsoever another(prenominal) renowned politicians and bureaucrats 3. 1. 2. Ethical Theories: Depending on the dilemma faced by variant mass in this case in that location are different honest theories that plunder be applied.Mainly we can apply 2 theories: * Utilitarianism: Utilitarianism is a conjecture in normative ethics holding that the proper course of accomplishment is the one that maximizes gain, specific protagonist defined as maximizing triumph and reduc ing suffering. In this theory person compares the earns with its make up and take decision accordingly. * Hedonism: It is a school of survey that argues that pastime is the only intrinsic good. In very unanalyzable terms, a pagan strives to maximize net entertainment ( supplicationsure negative pain).Ethical hedonism is the idea that all plurality bear the flop to do everything in their power to achieve the greatest follow of pleasure possible to them. It is also the idea that every persons pleasure should far surpass their amount of pain. 3. 1. 3. Cost ; Benefit Analysis: drop outing by the theory of utility, A. Raja might gull through with(p) the attain address analysis as follows: Benefits Loss | | A. Raja exit be getting hemorrhoid of money | A. Raja can be caught, plainly the chances are very less because in India politicians are never caught | With money there get out be power.Moreover he result be a accomplice of big incarnate personalities. | Sharehol ders lead get scratched with this decision| The huge benefit of under-pricing or unjust subsidiary was presumption to the mobile call services| The person who is not a shareholder or guest of all mobile telephony company has sold his share in spectrum on cheap prices and lost his money which would spend a penny been spent for the development of his solid ground| The subsidy was presumption to all industry majors, who regularly lobby against the subsidy to base human need wish well food, water, fostering 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 become assemble that he can well 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 p ull up stakes bring to him will be much much than that of pain so he ruling of choosing the ill-treat path of earning money. . 1. 4. Recommendation for resolving the Dilemma: The 2G Spectrum scam is at the utmost stage. right off as all the politicians, Bureaucrats, major(ip) Telecom company officials involve been exposed. and if would have followed the following simple tests or models they would have definitely selected the honorablely right path and avoided the consequences that followed. * Peter Drucker’s good example: â€Å"Above all, do no impose on _or_ oppress”. Peter Drucker wanted to pass a massive to any individual that if any of his/her decisions harms any other person thusly that decision is wrong. Raja had theory of this philosophy then he would have avoided his doings and maintained transparency in allocating 2G spectrum. * The government officials would have brought the issue in front of the judicial system if they followed this simple art icle of faith. Corporate executives would have refused sustain from A. Raja as reach making is ethical but profiteering is not * Warren tabulator’s first page of the4 countersignpaper’s Test: If all the slew imagined the intelligence agencypaper headlines that were published all end-to-end 2010, 2011 and 2012, they probably would have not done what they did. just about examples are included below: 1. Court issues notice 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 change in policy: Siddharth Behura 3. 2. Dilemma Faced By Corporates: The staple dilemma faced by the Corporates was whether to abide by the law of the surface area and meet the licenses they were capable of obtaining in an ethical manner or whether to unethically obtain licenses in order to increase customer base and earn instant profits.On flier of Utilarianism, benefits they achieved were that they were able to attain the shares at much lower address and thereby incur huge profits and it also hence provided them with an competitive edge over their competitors as they were able to outrun them that too in such(prenominal) short duration. Also if they did not buy these licences more or less 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 pennyre of such protests in 2010-2011 over the scam in 2G spectrum allocation to telecom companies.The 2G scam went a foresighted way to show how the Indian economy, one of the fastest maturement in the world, is dominated by a forgivable set of tightly connected power players. Industry observers felt that if not examine soon, the deep-rooted problem of crony capitalist economy in the state could adversely make a motion India’s growth and development. They wondered how the accountability could be arrested and t he unholy nexus broken. The suffusive justice states that equal people should be treated equally. There is nothing wrong in, incorporate making profits but it should not be at the cost of other people.When the corporates involve in a scam like this, the valuate payers are burdened which is not fair. Ultimately it is the tax payer, who pays for each Scam. Corporate as a part, of the society has got some 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 park man. The corporates by involving in the scam are not only do iting the general man but its own people like its shareholders. Transparency 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. caper ethics plays a very of import intent. th legal frame conk out may not be unceasingly be ethical but here observing the legal standards provides an all important(p) ethical dimension. The fear values like transparency, achromasia 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 aforementioned(prenominal) repair on its employees. When employees are ethically strong, consumer satisf put to death will be high and so the business has to sustain. Corporations pertain were: Allianz Infra, Aircel, Dishnet wireless, curve mobile, Reliance communications, S Tel, throw up telecom, Tata Tele Services, Unitech Group, Videocon Telecommunications Limited, Vodafone Essar, everlasting(a) Mobile India. * Corporate Personalities involved were: indigotin 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: Go ing 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 make ups pleasure, happiness, contentment or welfare and what is right is that which maximizes one or more of these things. Utilitarian’s call the method for maximizing good the principle of utility and they use the term optimific to nominate the achievement of this maximization. The Corporates on their part in order to maximise their profits at present 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 equity 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 in stant benefits. 3. 2. 4. Recommendation for Resolving the Dilemma: * Peter Drucker’s model: â€Å" jet shalt not steal” and â€Å"Primum Non Nocere. ” Which in incline means, above all (or first) do no harm. According to Peter Drucker wanted to convey that an individual’s decision is unethical if it harms any other person’s.Thus, invariable by the Peter Drucker model to sink this ethical dilemma involved the corporate personalities involved should have rejected the purpose offered by A. Raja as achieving profit is fairly ethical but what false out in this case was ‘profiteering’ which is unethical. 3. 3 Dilemma faced by the Government: In this stage setting ethical dilemma was on the part of the government afterwards the case got uncovered as it involved some politicians, bureaucrats, & ministers so either to put charge on all of them showing the vulnerable state of the nation or to avow a ace minister for the same. 3. 3. 1. Role of Government:The list had many well known ministers like Dayanidhi Maran(Union cabinet minister for textiles), P. Chidambaram(Union cabinet ministers for piazza 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 motions 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 attain in any situation is the one that, when compared to all other possible actions will produce the greatest balance of benefits over costs for everyone affected. * Hedonism: A school of thought that argues that pleasure is the only intrinsic good. In very simple terms, a heathen strives to maximize net p leasure (pleasure minus pain). In this context going by the above mentioned theory in order to maximize the net profits its meliorate 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 securities industry and enthronement in India. The mobile phone market is the world’s fastest growing making it a must(prenominal)(prenominal)-invest market for any major global operator but after looking at the corruptness level and the people involved they might not willing to come over and invest. Moreover it will also destroy the trust factor of the citizens and they will not have any faith in the government. Benefit: Disclosure of all the name involved in the scam will lead to a situation of distrust. In a globalized world such a situation will negatively affect the I ndian 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 fragmentise the dilemma’s 3 move can be followed, they are: * mensuration 1: Analyze the consequences Assuming that the answer to the ethical dilemma is to be found within the confines of law.Ethical dilemma that overturn should be resolved at least(prenominal) within the bare minimum of law and legal framework as otherwise it will lead to a chiseled of mafia business. whizz has to look at the consequences that would follow one’s proposed actions. And when one has several options to require from, there will be an array of consequences connected with each of such options, both positive and negative. in advance one acts, answers to the following questions 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 permit one enjoy something which gives trivial 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 at one time 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 lore 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 involved in the emergence of choice of the options that have to be considered and answered in one’s mind. by and by considering all these possible factors in the various options, it is well-founded 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 media’s responsibility to show the truth to the semipublic, moreover it also considered as a trustworthy microbe 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 diary keeper 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 care for when it allegedly involved two of their aged members. Media sources such as OPEN and arithmetic mean reported that two senior journalists Barkha Dutt (group editor in chief of NDTV) and Vir Sanghvi ( column director of Hindustan Times) k red-hot that corporate lobbyist Nira Radia was influencing the decisions of selectment of telecom minister. Radia wanted A Raja to be made 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 windlessness they back up this corrupt activity and suppressed news reporting the discovery of the corrupt practice. In November 2010, OPEN magazine carried a composition which reported transcripts of some of the telephone conversations of Nira Radia (a policy-making lobbyist) with senior journalists, politicia ns, and corporate houses, many of whom have denied the allegations.The Central Bureau 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 congener to the 2G spectrum sale. The tapes appear to demonstrate 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 unremarkable Hindustan Times and India’s television news channel NDTV’s group editor Barkha Dutt are apparently featured in the transcripts.They are heard promising to fix things for Radia, who is known to be close to the sacked minister A Raja, and her clients besides her policy-making cronies. While Sanghvi allegedly took notes from Radia on what he could point out in his periodic Sunday column of Hindustan Times even as Radia asked him to write against Reliance Groups indigotin Ambani and the high cou rt decision on the gas pricing issue. Barkha Dutt had allegedly advised Radia of getting ruling Congress troupe’s general secretary Ghulam Nabi Azad to let out to the supremo of his companionship’s chief ally in the government M.Karunanidhi to fix portfolios for the ally according to wishes of Karunanidhi’s daughter Kanimozhi. nonpareil thing to be noticed in this case was, initially the news gained blow following sustained pressure on social networking sites Twitter and Facebook against an attempted amnesia orchestrated by many owing(p) Indian TV channels and newspaper. Initially, only handful of newspaper like Deccan antecedent and The Indian Express wrote about the tapes. some(a) 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 while not touching corporate biggies such as Tatas and Ambanis. It is quite clear that in this 2G spectrum case, only 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 fact that the trial for 2G Spectrum case is going on, and nobody can be proven guilty unless and until it is proved in court, but, without taking it into account, our media has started blaming people and high spot 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 hiding the facts was that people will not trust the media if they come to know that facts were hidden f rom them but the benefits were that they will not spoil their relations with big politicians and corporate biggies. So benefits were more than the cost, as it is utter that common man has very short memory and you can cheat them. still as pressure started building from black eye 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 Nash’s model: Following the 12 questions that Laura Nash has raised in her model would have grabped 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 result s? * Whom could your actions injure? 4. Recommendations for avoiding payoff of the Issue Modern scams are victimless in that the victims are not obvious. The victims of these offenses are the taxpayers and citizens of the country to whom this money and assets belong. The only permanent 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 effectiveness of parliamentary lapsing on government and executive by making parliamentary committees stronger as well as more sheer(a) to the public. 3. It should be ensured that the Criminal Penal code has amendments to deal with and enable rapid prosecution of ashen collar crimes and scams. Judiciary should be single-handed and free of any external influence. It should be capable of taking strong action against the corrupt politicians.While sever e punishment is given to a poor village officeholder when he takes a bribe of Rs10, politicians who cheat the public and earn crores 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 financial crimes of the day. One such example is removing the Section 311 that requires previous sanction from the government to prosecute its officers. 5.Media play a very important role in forming an opinion among the citizens therefore there should be effective parliamentary prudence 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 creation of a new mobile phone of independent regulators, backed by parliame ntary 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 autarkical Regulators must also have oversight on them to ensure that there is no regulatory capture. 8. Ensure that government policy is always about the public and not about private and personal interests. 9. statute law must be initiated to regulate lobbyists and business chambers, to prevent advocacy changing to subversion and to protect against policy capture instead of policy advocacy. 10. Ensure government policies are not always bombastic empty talk and full of loopholes for exploitation. This will minimize administrative/political discretion. 1. Another way to stop corruption is to avoid the coalition form of governance. A single party must be allowed to rule the country on an individual basis without seeking the certify of innumerous minor parties. In the 2G spectrum case, the accused, A. Raja is a instance 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 cocker 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/ blood%20Ethics/Indian%202G%20Spectrum%20ScamExce2. tm#Can%20Accountability * http://www. isidelhi. org. in/hrnews/HR_THEMATIC_ISSUES/Corruption/Corruption-2011. pdf * h ttp://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 lieu by A. C. Fernando\r\n'