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BE Unit II Ethics Gandhian Philosophy of Wealth Management

The document discusses Gandhian philosophy of wealth management and trusteeship. Some key points: - Gandhi viewed business owners and managers as trustees of society's wealth, holding resources for stakeholders' benefit rather than just shareholders. - Trusteeship means optimizing value for all stakeholders, including workers who Gandhi saw as co-trustees with management. - Gandhi advocated for harmony between labor and management, with management also caring for workers' moral welfare. Strikes were justified only for securing justice, not as a first resort. - Indian companies like Infosys, Tatas, and Birla foundation have incorporated principles of trusteeship through wealth sharing, employee ownership, and social initiatives.

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916 views13 pages

BE Unit II Ethics Gandhian Philosophy of Wealth Management

The document discusses Gandhian philosophy of wealth management and trusteeship. Some key points: - Gandhi viewed business owners and managers as trustees of society's wealth, holding resources for stakeholders' benefit rather than just shareholders. - Trusteeship means optimizing value for all stakeholders, including workers who Gandhi saw as co-trustees with management. - Gandhi advocated for harmony between labor and management, with management also caring for workers' moral welfare. Strikes were justified only for securing justice, not as a first resort. - Indian companies like Infosys, Tatas, and Birla foundation have incorporated principles of trusteeship through wealth sharing, employee ownership, and social initiatives.

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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Gandhian Philosophy

of
Wealth
and
Principle of Trusteeship
The Philosophy
Gandhian Philosophy of Wealth Management

• Gandhian Philosophy of wealth management is


based on the ‘Servodaya’ principles of Truth, Non-
Violence and Trusteeship; wherein class harmony
between labour and management reigns supreme.

• According to Gandhiji, managers and proprietors of


business firms are only the trustees of wealth of
society.
Gandhian Philosophy of Wealth Management

• The idea of trusteeship advocated by Gandhiji, is based on


and has its origin in the Bhagaved Gita-in the principles of
‘aparigraha’ (non-possession) and ‘Sambhawa’ (equalism)
which were ardently followed by Mahatma Gandhi.

• Unlike the Utilitarian motto of ‘greatest good of the


greatest number’ known as Teleology, Gandhiji’s motto was
‘greatest good of all’.
Gandhian Philosophy of Wealth Management

Trusteeship, as applicable to the corporate world,


refers to the act of holding and managing resources
on behalf of the stakeholders of the firm.
Gandhiji’s views on labour management relations

• My ideal is that capital and labour should


supplement and help each other.
• They should be a great family living in unity and
harmony;
• Capitalists not only care for the material welfare
of the labourers, but their moral welfare also
Gandhiji’s views on labour management relations

• Gandhiji assigned a paternalist role to management in their dealings


with labour.

• Gandhiji considered trade unions to be means of workmen’s material


and moral development.

• He declared that a strike is an inherent right of the working man for the
purpose of securing justice, but they must be considered a crime
immediately if the capitalists accepts the principle of arbitration.

• If conflict arises between labour and management, the weapon


proposed by Gandhiji is Satyagraha
GANDHIJI’S PRINCIPLE OF TRUSTEESHIP

• Trusteeship principle is foundation of philosophy of


wealth management

Principles of Trusteeship
– No recognition to right to individual property
– Resources must be held and utilised for the benefit of society.
– Management is the trustees of the stakeholders and must work
towards optimising stakeholder value, not merely maximising
shareholder value
Gandhiji’s principle of Trusteeship

– In case of industrialist what they produce should be


determine by social necessity with optimal utilization of
scarce resources and not by personal whims

– If workers are to work with harmony and collaboration with


management then that make workers also co-trustee with the
management

– Though wealth legally belongs of owners of business, morally


belongs to society and community
Seven greatest Sins

• Politics without principles


• Education without character
• Commerce without morality
• Pleasure without conscience
• Wealth without work
• Science without humanity
• Worship without sacrifice
Relevance of Gandhian Philosophy in recent times

• Yes or No
• Why?
Indian Corporate Leaders and Trusteeship

• Infosys, particularly from its former CEO and current chief mentor,
Narayana Murthy for creating this company along with a small group of
people (better sharing of wealth in society), the involvement of employees
in the company’s fortunes and his contentment with a mere 7% of company
stock (he prefers it that way) reflect a deep-rooted commitment towards
trusteeship.

• House of the Tatas with their corporatised initiatives for socio-corporate


benefits

• “WIPRO Cares” Foundation, with a targeted corpus of Rs 100 crore for


primary education;

• Birla foundation with its focus on socio-economic improvement in the lives


of the people touched by the corporation.
Thank You

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