Q. 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 center, is a medium-sized town. It houses a large district hospital, an Industrial Training Institute and some privately owned skill training centers. It has all the facilities of a district headquarters. A trunk railway line passes approximately 50 kilometers from Amria. Its poor connectivity is a major reason for the absence of any major industry therein. The state government offers a 10 year 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 labor and got them trained at the skill training centers at Amria. This act of his made the key personnel very loyal to APW. APW started production in 2011 with the labor 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 sizable 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 center 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 analyze the story of APW and state the ethical issues involved. Do you consider APW as a role model for development of backward areas? Give reasons.
Answer:
| Approach:
Introduction
Shortly analyse the case study.
Body
- Ethical issues involved in the story of APW
- APW as a role model for development of backward areas
Conclusion
|
Introduction:
APW’s establishment in Noora village brought employment opportunities and economic development, leading to improved quality of life and infrastructure in the area.
The company’s CSR initiatives positively impacted the community, and its adherence to safety protocols and responsible practices enhanced its reputation.
Despite challenges like the fire incident and the COVID-19 lockdown, APW demonstrated resilience and commitment to its employees and the village.
Body:
Ethical issues involved in the story of APW:
- Employment practices: Key labor hired from the local village, raising questions about fairness and equal opportunities.
- Compliance with regulations: Unauthorized use of excess electricity capacity, indicating potential non-compliance with regulations.
- Social responsibility: Using profits for the betterment of Noora village through infrastructure, healthcare, education, and community programs.
- Environmental impact: Consideration of the environmental implications of production processes, waste management, and resource consumption.
- Exploitation: The reliance on labor from Noora village may raise concerns about exploitation if the wages and working conditions are not fair.
- Transparency and disclosure: The company’s disclosure of its financial contributions and utilization of CSR funds should be transparent to ensure accountability.
- Local community engagement: The extent of meaningful engagement and participation of the local community in decision-making processes and resource allocation.
APW as a role model for development of backward areas:
- Positive contributions: Providing employment opportunities near the village, improving infrastructure, and engaging in community development initiatives.
- Sustainability: Evaluating the long-term sustainability of APW’s business model and its impact on the local economy.
- Equitable distribution of benefits: Ensuring that the benefits generated by APW reach all members of the community fairly.
- Environmental responsibility: Assessing the company’s commitment to environmentally sustainable practices.
- Local stakeholder involvement: Considering the extent to which the local community is involved in decision-making processes and the alignment of APW’s initiatives with community needs.
- Skill development: The impact of APW’s training programs on the skill development and employability of local villagers.
- Economic empowerment: Assessing the extent to which APW’s operations have contributed to the economic empowerment of the local community.
- Collaborative partnerships: Evaluating the company’s efforts to collaborate with local stakeholders, NGOs, and government agencies to maximize the benefits for the community.
- Ethical business practices: Examining the company’s commitment to fair trade practices, including labour rights, environmental sustainability, and ethical sourcing.
Conclusion:
- Sustained employment opportunities for the local community.
- Skill development programs for continuous improvement.
- Infrastructure development to attract more investments.
- Diversification of industries for a robust economy.
- Environmental sustainability and responsible practices.
- Collaborative partnerships for community development.
- Social initiatives for improved quality of life.
2020
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