ethics - assignment i

8/3/2019 Ethics - Assignment I

1/3

MBA Semester IV (Business Ethics & Corporate Governance)

Internal Assignment I

Answer each of the following questions in approximately 700 words.

(The word limit is only indicative, and you need to focus on width (analyse the question from

different perspectives), depth (understand deeper aspects of each question) and conciseness (to-

the-point and without any unnecessary detailing).

1) Ethical practice meansacting for the benefit of others, whileincurringlossto ourselves.Asa practical person,adheringto ethics meanslosing out ongrowth opportunities.

Analyse above statements and elaborate your views, considering the advantages and

disadvantages of beingethical.

Sonu Gujjar left Maruti withseverance pay of Rs. 40 Lakhs.Answer questions 2 to 5 with referenceto

thisstatementandthestrikein Maruti Manesar plant.

2) How woulddifferent partiesinvolvedinthiscase, respondto suchseverance pay?Also stateyourview.

There were 30 suspended workersat Maruti's Manesar plant, includingtheir two leadersSonu Gujjar

andShiv Kumar, who hadapparently quit thecompany, takinghomeamounts ranging between Rs 16

lakhand Rs 40 lakh.Sonu Gujjar who wasunreachableafter the settlementhad reached was said to

have resigned for a fulland finalsettlement ofaround Rs 40 lakhsleavingthose who ardently followed

andsupportedhim duringthestrikehighanddry.

This wasnottaken well bythe workers who wereleftcaughtin between managementandaleader who

hadabandonedthem attheclimax. The workersthen planned filingacriminalcaseagainst Gujjar and

other leaders who hadtakensuchseverance paychequesandleftthestruggle

The quietexit ofthese 30 workersleft other workersshellshocked,especiallysincetheyhad forfeited

wages for atleast 74 daysduringthe 59 days ofstrikesince June.

Some reacted with barelyconcealedanger andsaidtheactions ofthe 30 Maruti workers woulddamage

thetradeunion movement.

Over a period oftime,it willhurttheinterests ofthe other workers

3) After thelonglabour strike,all partiesinvolvedsuffered. Comment.


2/3

4) Managementcouldhave preventedthis labour unresteven before itstarted, bytaking proactiveactions. Comment.

As per theagreement, worjer will faceno work,no pay for theduration ofthestrike.

y A'Grievance Redressal Committee' will besetup andit willhave representation from themanagementand workers.

y Also,a Labour Officer from thestategovernment will bea permanentinviteeto thecommitteeand will review its proceedings,thesourcessaid.

y Theagreementalso provides for thesettingup ofa'Labour Welfare Committee'to promotemeasures for good relations betweenthe managementand workers. Thecommittee will

comprise members from the managementas wellas workers.

y Itisunderstoodthatthecompanyhasalso agreedto arrange for transportservices for workersinline withshifttimings.

5) What would betheaftereffects ofthis wholeepisode?With workers' strike at its Manesar (Haryana) plant finally over, Maruti Suzuki India Ltd (MSIL)

is now gearing up to meet the backlog of around one lakh cars, which has accumulated due to the

unrest since June. In the last five months, MSIL has seen plant operations been shut for almost

60 days and the company suffering a monetary loss of over Rs.2,200 crore.

On Saturday, it was normal operations at the Manesar plant that produces 1,200 units of MSIL's

some of the most popular cars, including Swift. The workers are back on the jobthere is a fullshift working at the Manesar plant. Our priority is to normalise the entire production as fast as

possible as we have to clear huge backlog of orders, an MSIL spokesperson said.

This year, MSIL has seen its Manesar plant shutting for 59 days first time in June, then in

September and now in October.

Production loss

Even the carmaker's Gurgaon plant had to be shut for three days due to the unrest, while its

powertrain unit was also hit by the strike.

MSIL has lost production of almost 75,000 units due to the strike while its manufacturing of its

popular K-series engine was also affected.

The strike for MSIL, which has been seeing long waiting period for its popular vehicles, at a time

when the festival season sales were picking up, came as a big setback. While MSIL suffered a loss

of Rs.2,200 crore, including around Rs.700 crore hit that its vendors took, the government also

saw huge loss in its earnings. For the Union Finance Ministry, the deficit in terms of excise duty


3/3

collections would be over Rs.500 crore, while for the Haryana Government the duty loss would

be around Rs.50 crore.

But more than the monetary loss, it is reputation of Haryana, particularly the Gurgaon belt, as an

investment destination has taken a severe hit.

As a result, the strike could force MSIL to think over the proposed Gujarat plant catering to

domestic demand as well, while the initial idea was to keep it exclusively for exports as the

carmaker has already invested in developing infrastructure at the Mundra port in the State

ethics - assignment i

Documents