OIndia's position as one of world's largest manufacturing countries dwindled. OCollapse of Mughal empire and political fragmentation oBritish free-trade policies oHandicraft producers exposed to globalization price shocks.
OIndia's position as one of world's largest manufacturing countries dwindled. OCollapse of Mughal empire and political fragmentation oBritish free-trade policies oHandicraft producers exposed to globalization price shocks.
OIndia's position as one of world's largest manufacturing countries dwindled. OCollapse of Mughal empire and political fragmentation oBritish free-trade policies oHandicraft producers exposed to globalization price shocks.
Mansi Singhal (12P148) Praveen V V (12P156) Rajiv Gupta(12P159) Ravi Goel (12P161) Vaibhav Gupta (12P172)
Jamnalal Bajaj, Mahatma Gandhi and The Struggle for Indian Independence Pre Modern Era 2 GLOBAL GIANT TO GLOBAL POVERTY 3 oIndias position as one of worlds largest manufacturing countries dwindled
oSurge of prosperity in West was missing in India
oSteep decline in Industial output from 1750 to 1938(de- industrialisation)
oCollapse of Mughal Empire and political fragmentation
oBritish free-trade policies
oHandicraft producers exposed to globalization price shocks
oDisrupted agricultural productivity attributed to drought, high prices leading to low wages
oExporter to an importer of textiles
PRE BRITISH 4 2500 BC 4-5 th AD 10 th AD Flourishing Commerce Agriculture Multiple kingdoms Territorial ambitions
Golden age of India North India united under one rule Turkish Afghan Invaders Founded by Babur Stable empire Dissolution benefitted rich Indian merchants and bankers 1526 - 1857 Indus Valley Aryans Guptas Islamic Dynasties Mughals Privately owned Joint Stock Company Royal Charter by the Queen to trade Rights to mint money, command troops & form alliances Ownership Merchants took to the Company when in dispute with rulers As it consolidated power, princes lost their role Role of Merchant Princes Opened the door for private British merchants Worked closely with local merchants Local and Indian businesses victims of boom and bust cycles End of Companys Monopoly THE EAST INDIA COMPANY 5
British traders reaped all benefits of Free Trade
Spent little except on railroads and defense
Transport System New Judicial System Consolidation of Power Almost no interest Banned sati Most existing social structures left in place Social Engineering Lack of tariff revenue Low tax regime Colonial state had high profit with low spending Free Trade Orientation THE BRITISH CROWN 6 Modern Indian Entrepreneurship 7 THE PARSEES 8 Origin Arrived in the subcontinent from Persia
Attracted by growing prosperity of Bombay
Evolution Surat agriculture & farming
Interpreters & middlemen for Europeans
Bombay increased mercantile
Businesses Cotton and commodity trading
Owners of the Indian Merchant Navy
E.g. Tatas
Relations with the British Mastered English & adopted British customs
Wealthy landowners; close contact with the British
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The Marwaris 9 Origin Thar desert in Rajasthan
Traders and bankers, even to regional Rajputana kings Evolution Pan India selling textiles & importing British goods
Calcutta - Selling opium
Jute mills after WW I Businesses Indian textiles
Opium
Jute mills
In 1990s, controlled 3/5 th of Indian private sector businesses Relations with the British Close commercial ties with British merchant houses
Jatia Andrew Yule & Goenka Bird & Heilgers
On board of European owned jute mill companies
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Bajaj Group 10 Origin Marwaris Businesses Cotton traders & bankers
Fire, marine & general insurance
Sugar refining industrial venture
Two wheeler vehicle manufacturer
Relations with the British Interested & involved in struggle for Indias independence
Jamnalal Bajaj followed the TRUSTEESHIP MODEL as applied to firms THE INDIAN INDEPENDENCE STRUGGLE Imperial System From trade to dominance From fluid relationship to discrimination Racial Inequality Indians barred from Civil services Indian National Congress(1885) Chambers of Commerce Swadeshi Tata set-up first indigenous steel mill- 1630000 pounds contributed by 8000 native Indians WWI- 1.3 million Indian soldiers volunteered in a hope of equal treatment from the British 1919, Jalianwalabagh Massacre 11 GANDHI AND THE MARCH TO FREEDOM Mohandas Karamchand Gandhi(1869-1948) Studied law in England, joined Indian Law Firm and went to South Africa In SA, fought against racial discrimination for years Conceptualized Satyagrah Founded Phoenix settlement and Tolstoy Farm Indian Relief Act, 1914
GANDHI AND THE MARCH TO FREEDOM (CONTD..) In India, Sabarmati Ashram and Wardha Ashram Salt Satyagrah- 1930 1942, Quit India Movement Peaceful methods Gaps between Congress and businesses Support of some businessmen like Jamnalal Bajaj JAMNALAL BAJAJ AND GANDHI Jamnalal Bajaj- inclined towards philanthropy Even as a child, flaunting wealth repulsed him The hardships of his childhood resulted in a quest for spiritual consciousness Greatly influenced by Gandhi Under Gandhi, gave up all associations with British (including a title) and focused on rural empowerment Gandhi proposed Trusteeship Model TRUSTEESHIP MODEL Businesses were needed for society and their role is beyond just profit making Business owners should regard themselves as trustees or safe-keepers of the wealth in their possession Use only what required for sustenance; rest profit distributed amongst stakeholders of the business Entrepreneurs should adhere to the tenets of 1 Fairness 2 Honesty 3 Charity Incur no debts, transact no business on credit, take up no business in forbidden goods and do not engage in business to get rich quickly
Gandhis principles are credited to contribute to modern day theories of CSR HOW JAMNALAL PRACTICED TRUSTEESHIP Refused to falsify the weight of cotton bales by watering them Expanded business but used to give away his wealth in Gandhis work Spent a year in jail for defying an official ban, 1942 Toured India calling for usage of home spun khadi Donation of Rs. 82000 saved in tax wrongly by the staff Gave up attractive offers to buy textile mill and refrained from alcohol business Assigned 3/4 th of his estate to areas approved by Gandhi Chose to conduct business under constraints of Gandhian ethics A NEW INDIA 1947, Freedom at Mid-night India was a nation of mixed emotions New political establishment was wary of capitalists Planning system with heavy state involvement License Raj, till 1990s 4 PHASES OF CSR DEVELOPMENT IN INDIA Phase 1 Pre-industrialization period, which lasted till 1850; Charity and philanthropy were the main drivers of CSR Culture, religion, family values and tradition and industrialization had an influential effect on CSR Setting up temples for a religious cause, help during famines and epidemics Phase 2 During independence movement Trusteeship concept Phase 3 1960-80; emergence of PSU, labor laws, environmental standards Era of command and control, high taxes, restriction and corruption In 1965 Indian academicians, politicians and businessmen set up a national workshop on CSR aimed at reconciliation Phase 4 1980-present; Globalization Indian companies integrated CSR into a sustainable business strategy Need to pay a close attention to compliance with the international standards THANK YOU