Parmal is a small but underdeveloped district. It has rocky terrain that is not suitable for agriculture, though some subsistence agriculture is being done on small plots of land. The area receives adequate rainfall and has an irrigation canal flowing through it. Amria, its administrative centre, is a medium sized town. It houses a large district hospital, an Industrial Training Institute and some privately owned skill training centres. It has all the facilities of a district headquarters. A trunk railway line passes approximately 50 kilometres from Amria. Its poor connectivity is a major reason for the absence of any major industry therein. The state government offers a 10 years tax holiday as an incentive to new industry.
In 2010 Anil, an industrialist, decided to take benefits to set up Amria Plastic Works (APW) in Noora village, about 20 km from Amria. While the factory was being built, Anil hired the required key labour and got them trained at the skill training centres at Amria. This act of his made the key personnel very loyal to APW.
APW started production in 2011 with the labour drawn fully from Noora village. The villagers were very happy to get employment near their homes and were motivated by the key personnel to meet the production targets with high quality. APW started making large profits, a sizeable portion of which was used to improve the quality of life in Noora. By 2016, Noora could boast of a greener village and a renovated village temple. Anil liaised with the local MLA to increase the frequency of the bus services to Amria. The government also opened a primary health care centre and primary school at Noora in buildings constructed by APW. APW used its CSR funds to set up women’s self-help groups, subsidize primary education to the village children and procure an ambulance for use by its employees and the needy.
In 2019, there was a minor fire in APW It was quickly extinguished as fire safety protocols were in place in the factory. Investigations revealed that the factory had been using electricity in excess of its authorized capacity. This was soon rectified. The next year, due to a nationwide lockdown, the requirement of production fell for four months. Anil decided that all employees would be paid regularly. He employed them to plant trees and improve the village habitat. APW had developed a reputation of high-quality production and a motivated workforce.
Critically analyse the story of APW and state the ethical issues involved. Do you consider APW as a role model for the development of backward areas? Give reasons.
Parmal is a small but underdeveloped district. It has rocky terrain that is not suitable for agriculture, though some subsistence agriculture is being done on small plots of land. The area receives adequate rainfall and has an irrigation canal flowing through it. Amria, its administrative centre, is a medium sized town. It houses a large district hospital, an Industrial Training Institute and some privately owned skill training centres. It has all the facilities of a district headquarters. A trunk railway line passes approximately 50 kilometres from Amria. Its poor connectivity is a major reason for the absence of any major industry therein. The state government offers a 10 years tax holiday as an incentive to new industry.
In 2010 Anil, an industrialist, decided to take benefits to set up Amria Plastic Works (APW) in Noora village, about 20 km from Amria. While the factory was being built, Anil hired the required key labour and got them trained at the skill training centres at Amria. This act of his made the key personnel very loyal to APW.
APW started production in 2011 with the labour drawn fully from Noora village. The villagers were very happy to get employment near their homes and were motivated by the key personnel to meet the production targets with high quality. APW started making large profits, a sizeable portion of which was used to improve the quality of life in Noora. By 2016, Noora could boast of a greener village and a renovated village temple. Anil liaised with the local MLA to increase the frequency of the bus services to Amria. The government also opened a primary health care centre and primary school at Noora in buildings constructed by APW. APW used its CSR funds to set up women’s self-help groups, subsidize primary education to the village children and procure an ambulance for use by its employees and the needy.
In 2019, there was a minor fire in APW It was quickly extinguished as fire safety protocols were in place in the factory. Investigations revealed that the factory had been using electricity in excess of its authorized capacity. This was soon rectified. The next year, due to a nationwide lockdown, the requirement of production fell for four months. Anil decided that all employees would be paid regularly. He employed them to plant trees and improve the village habitat. APW had developed a reputation of high-quality production and a motivated workforce.
Critically analyse the story of APW and state the ethical issues involved. Do you consider APW as a role model for the development of backward areas? Give reasons.
Introduction Anil's establishment of Amria Plastic Works (APW) showcases the potential of industrial development to uplift marginalized communities. This case highlights the ethical dilemma of balancing profit generation with social responsibility, exemplified by the 2019 factory fire incident due to exceeding authorized electricity capacity, raising concerns about prioritizing short-term gains (increased production) over long-term sustainability and worker safety, best addressed through the lens of utilitarianism.
Stakeholder Identification Anil, APW employees, Noora villagers, local MLA, Amria community, government, environment.
Ethical Issues and Analysis
- Initial Act of Training: Anil's investment in training demonstrates a commitment to employee development and fosters loyalty, reflecting a virtue ethics approach. It also contributes to the common good by enhancing the skill set of the local population.
- Local Employment and Community Development: Hiring locally demonstrates a commitment to the community's welfare, aligning with stakeholder theory. The improvements in Noora's infrastructure and quality of life demonstrate a utilitarian approach, maximizing overall well-being.
- CSR Initiatives: APW's CSR activities, such as supporting education and healthcare, showcase corporate social responsibility and contribute to sustainable development. This embodies the common good approach.
- Fire Incident: The fire incident, caused by exceeding authorized electricity capacity, highlights a lapse in safety protocols and a potential conflict between short-term gains and long-term sustainability. This raises concerns about a potential disconnect between means and ends.
- Response to Lockdown: Anil's decision to continue paying employees during the lockdown demonstrates a commitment to employee welfare and social responsibility, aligning with the ethics of care. Repurposing employees for environmental improvement activities reflects a commitment to sustainable development.
Is APW a Role Model?
APW largely serves as a positive example for development in backward areas. Its success demonstrates that industrial development can go hand-in-hand with community upliftment and environmental sustainability. The company's focus on stakeholder benefit rather than solely shareholder benefit is commendable. However, the fire incident highlights the need for continuous vigilance and adherence to safety regulations. The incident underscores the importance of balancing utilitarian goals with deontological duties of ensuring safety and responsible resource use.
Reasons:
- Holistic Development: APW's approach goes beyond mere profit generation and encompasses social and environmental well-being, aligning with the principles of sustainable development.
- Community Engagement: APW's active involvement in improving the lives of Noora villagers demonstrates a commitment to the common good and stakeholder theory.
- Employee Welfare: APW's focus on employee training, fair wages, and support during the lockdown demonstrates a commitment to ethical labor practices and the ethics of care.
- Environmental Responsibility: While the fire incident raises concerns, APW's subsequent efforts to improve the village habitat and plant trees demonstrate a commitment to environmental sustainability.
Conclusion
The APW case provides valuable ethical learnings about the importance of balancing profit with social responsibility, prioritizing long-term sustainability over short-term gains, and integrating ethical considerations into all business decisions. The Self Employed Women's Association (SEWA) in India provides a real-life example of how empowering marginalized communities through sustainable livelihoods can lead to positive social and economic change. Moving forward, businesses should adopt a stakeholder-centric approach, prioritizing the well-being of all affected parties, including employees, communities, and the environment. Regular ethical audits and transparent reporting can help ensure accountability and prevent future ethical dilemmas. Promoting a culture of ethical decision-making within organizations is crucial for fostering sustainable and responsible development.
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