Section C | Group 1

Himanshu Gupta (12P138)

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

9
G
r
o
u
p

1
;

S
e
c
t
i
o
n

C
;

M
D
I

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

10
G
r
o
u
p

1
;

S
e
c
t
i
o
n

C
;

M
D
I

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