Mr. Jayaswal and Mr. Dadra both had their ethical behaviors tested. It seems in India that in order to prosper and succeed, you have to behave in a manner that many Americans would consider unethical. Politicans tend to have a negative conotation regardless of their country of origion. However, politicans cultural values in India far surpass the negativity of the United States'. It is very apparent that Indian businessmen are aware of what it takes to succeed in India, regardless of how their behavior is percieved. “If you were in his position, you would do the same thing,” the businessman said, asking not to be identified because his company also received coal fields and did not want to draw attention to himself. “In this country, it’s difficult to survive. Whoever has a master key wants to eat up all of India. Whoever doesn’t have a key is struggling to survive.”
Mr. Jayaswal doesn't believe he did anything "unethically". However, others would view him negatively for having ownership of natural resources and using them to benefit himself financially rather than India's overall prosperity. Mr. Jayaswal also probably views the situation as, if I do not have ownership of a coal mine, someone else will, and they will gain financially instead of myself. The Indian government, including Mr. Dadra also had their ethical behavior tested. The Indian government did not use competitive bidding for ownership of the country's coal mine. Instead, they based their decision on the popularity of applicants. They could have originally sold the mines to electrical companies or individuals who were willing to better India.
Mr. Jayaswal is known as an individual who likes to flaunt his assets and who has also prospered increasingly in recent years. Having light on this corruption scandal proves to others who were doubtful of Mr. Jayaswal's recent upcoming success, that he is involved in the scandal with India's government. It perceives him as an untrustworthy individual who is only concerned about himself, rather than using his financial gains to better the 300 million currently living with no electricity in India. However, other businessmen that own coal mines like himself, understand how the road to success works in India.
I believe Article 23 is most prevalent to Mr. Jayaswal's moral reasoning - "Everyone has the right to work, to free choice of employment, to just and favorable conditions of work". I think Mr. Jayaswal views owning a piece of India's natural resources and profiting from them are his form of "work". Also, how he builds his network of relationships with fellow Indian politicians and government officials is part of his road to success - those being his form of working conditions.
"Despite a strong legal framework, the anti-corruption agency is perceived as ineffective." [Globalintegrity.org] If India's government is majorly involved in corruption, it will be very difficult to turn the system around unless the current government is evoked and new officials are instated. However, I do feel that citizens of India are making the Indian government aware that they are extremely unhappy with the government's denial of India's current and ongoing problems. That because of their awareness, led the government to reclaim four coal fields from companies that did not make sufficient mining process. If the Indian government continues to act in that manner, coal mining owners will feel the need to use the mines in a benefical way to the country of India.
http://www.globalintegrity.org/report/India/2011
http://www.nytimes.com/2011/08/18/world/asia/18iht-letter18.html
Thursday, September 27, 2012
Wednesday, September 19, 2012
Zara: A Global Success
Being a devoted customer at
Zara, it is greatly evident that they are at the top of the fashion chain. It is
rare when entering Zara that you see the same styles time and time again. This
approach to rapid turnover benefits them greatly. Customers feel they have to
purchase an item, even if they are unsure about it, knowing it will not be there the
next time they visit. However, the rapid turnover approach is also greatly
beneficial to the customer. Zara continuously sets the trend by showing
consumers the latest fashion in the market, you see a style on the runway and
within a few days it is on the clothing racks. Taylor, Fayol, and Weber's classical management approaches
are all relevant throughout Zara's retail operation.
Characteristics of Frederick
Taylor's theory are greatly shown throughout Zara. For example, Taylor's theory of
efficiency is shown throughout the ordering process. Store managers can reorder
popular items in less than an hour. Also, if a particular look or design is
unsuccessful, designers will quickly put together new merchandise. What makes
Zara even more efficient is their logistics operation through internalization.
Zara's parent company, Inditex
Group internalizes the supply chain as much as possible, which leads to "maximum
prosperity for the employer and the employee".
Additionally, Fayol's administrative principles are seen throughout the company. Coordination is greatly involved throughout the ordering and re-ordering process. Managers have great control in this area, they are aware of their customers wants and needs. Also, the company has great foresight in the fashion market. Inditex is continuing to prosper through Zara's profits. “The world’s largest clothing retailer, Zara owner Inditex, posted a 32 percent jump in first-half year profit on Wednesday, taking market share in its home market Spain and grabbing new customers online and in emerging markets.” [Rueters]
Not as relevant, but still apparent are Max Weber's bureaucratic beliefs in Zara's management. There is a clear process and procedural method when it comes to Zara's production. In regards to manufacturing the merchandise, whether it be cloth received from different distributors or Zara's own producer. Also, the designing and logistical departments each have their own individual tasks and processes on how to get merchandise to retailers as fast as possible.
Zara is continuously growing and is in the lead in terms of competition. "The emerging market expansion has allowed Inditex to grow faster than H&M and Gap Inc." [WSJ] Zara has taken globalization by storm, recently adding an e-commerce site as well as continuing to open stores in major cities and locations. "Inditex is adding stores in markets such as China as its domestic market faces its biggest economic crisis in decades. The company is also driving revenue growth by expanding sales via the Internet." [Bloomberg BusinessWeek]
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