Tradeoffs and Morals: Gandhian Lines for Ethical Entrepreneurship |
- Dr. Varalakshmi Moganty*AbstractHuman actions are controlled by human calculus on profit and loss generally. But that does not mean we act always with a profit motive. Human actions based on morals are distinct and wise choices than actions guided by trade-offs. What Gandhi has in store to preserve humans and humanity at large on wise entrepreneurship is more close to his ideas on man and managing one’s self through his reflections expressed in several occasions and his momentous actions. When most people in the name of collective wellbeing despise capital formation, Gandhi respected capital formation and capital investment. At the same time Gandhi was conscious of public discontent and unrest due to capital formation. Gandhi said in his Hind Swaraj: “bad men fulfill their evil designs with rapidity”. A good entrepreneur is not far from a good citizen. A good entrepreneur is a hardworking, disciplined person who works for a profit, in other words who deserves a profit. For, his profits are wisely invested not for the well-being of his selfhood and his beloved alone, but for an extended family; a society too. Gandhi’s ideas of, ‘an introspecting self in each walk of one’s life’, ‘education that is for life’; ‘moral compromise but not a trade-off’ and ‘wise strategies to reach one’s goal’ and above all ‘strict adherence to principles of truth and nonviolence’ – all help not simply for the existential need of humans, rather make human societies essential and sustainable through purposive entrepreneurs. This paper attempts to show the significance of moral entrepreneurship as against market oriented business at the outset. Then it paves a theoretical base on human nature and human exercise to prefer, contemplative happiness and peace to, basal pleasures and short term goals, by referring to recent scientific analyses. Finally this paper interprets Gandhi’s ideas for a successful and model entrepreneurship. I. Significance of Ethical EntrepreneurshipToday we are living in the midst of consumerism and market-oriented world. Human relations are at stake due to our excess love for money. Services and honours are distributed among people only based on the purchasing capacity but not on the human need and human suffering. While adult world is insecure for existence children too are taught to aim at such education that only helps to procure money but not the profession that goes along with the natural aptitudes and that pleases one’s mind. Globalization is generally understood as ‘increasing integration of economies around the world through ‘trade’, ‘production chains’ and ‘finances ((Bhargava, 2005). Hence from “proto globalization” (first coined by A.G. Hopkins and Christopher) in the trade arrangement with East India company to the present hegemony of states over states, it is evident that it is money and political power that ruled people. Subsequent colonization process all over the world and modern globalization caused global governance of states over states (Huymen et. al.2005). A person can prove their abilities in a chosen field but it must be supported by personal values and social ethics. Liberal thinking only helped for apparent freedom; economic freedom and aloofness in the family and society. In this context young people are in confusion to choose a profession. A choice of profession is not the profession that gives food and social status alone but a dignity, self reliance and an assurance for the people around him or her. Today management studies are teaching and training for entrepreneurship mainly focusing on the competitive skills of the students. One can gain training and get life skills and these skills must be supported by not simply egoism, liberalism and consumerism. Traders and producers are producing and selling the products that make difference from the previous product. The main purpose of trade is forgotten to serve the needy with a service motive due to present globalization. However, there is also a changing trend in the recent management studies through introduction of moral studies, Indian heritage and culture and human rights and yoga and also Gandhian economics in the curriculum. These contemplative outlooks are of some healthy trends in some management institutes. What we need today is many such contemplative teachings and practices to make business enterprises purposive for human services and human development. In this context the idea of ethical entrepreneurship saves individuals from unhealthy pressure and competition created through globalization. A trade-off is a business compromise whereas ethical entrepreneurship is a moral compromise to make self reliant entrepreneurs supported by ethical values and help to better societies and nation. II. Of Human choices: Trade-offs Vs. Ethical entrepreneurshipWhat motivates human actions? Is it pleasure or peace? Perhaps it is search for peace for humans are restless till they achieve something they desired. Yet, absence of restlessness is not exactly a state of peace though a fulfillment of one desire makes people at rest. For, this rest is a break but not a state of Peace. A state of sublime or peace indicates that pleasure is not a mere gratification but a contemplative happiness that is pervasive; makes others around too feel secure and peace. One can have escalated levels of happiness in relation to their values attributed to themselves over a period of life. One’s contentment, concern for others makes one to achieve contemplative happiness. It is through an introspecting self man will be able to cognize what exactly he needs; of the feasible goals and how they can be translated to give happiness to him and to his dependents. Once a person reaches an optimum level of happiness he may extend a helping hand to the needy with little trading offs. If this process misses in one’s life one may wrongly identify one’s goals and means. To improve oneself from cognitive process to a contemplative process one needs a study of the world of realities. One may preconceive that it is only money that matters and controls all human actions and makes people happy. Yet, through a cognitive understanding along with listening to inner self and relating the self to the world people would realize that it is purposive use of money that makes people happy. Trade-off is a compromise between two choices related to the material world. But acts performed through conscience are moral actions and wise choices and thus differ from trade-offs to which men generally concede to. Human conscience is universal; so also eternal truths like dharma/ justice; compassion, dana or generosity; and ahimsa or nonviolence and satya or truth. Of all the values that are moral imperatives for humans to build up a moral society the most difficult exercise is to follow dharma or justice. It is like a balance; an invisible human calculus that determines human actions just by listening to one’s conscience. Once the person is cultured to this habit it is very difficult to the person to come out of this moral frame work. On the contrary if a person is cultured to listen to materialistic self but not to the internal self it is also very difficult for him to come out from his periphery. How we can relate the identification of self with values in the life of an entrepreneur. Here are some findings of a recent scientific research to substantiate the argument that idea of ethical entrepreneurship is a possible phenomenon. As said at the outset a good entrepreneur is not far from a good person. The Neural basis of Compassion:Sympathy and empathy are natural feelings in human beings and people show compassion and charity for others’ sufferings. Over a period of time people get reduced their sensitivity due to their attachments to self-centered behaviour. His holiness Dalai Lama explains of the reason for this behaviour: “It is quite clear in compassion and concern, there is biased sense and unbiased sense. The biased one very much deals with “me”, “this is something nice to me”. The unbiased one is very objective” (Davidson, 2015, p.50 A practice of equanimity reduces partiality according to Dalai Lama (Davidson, 2015, p.50). His holiness Dalai Lama attended a conversation on altruism and compassion with contemplative scientists and economists in Zurich, Switzerland (Singer et. al. 2015, p.2). Richard Davidson explains further of the neural basis of compassion and altruism and pro-social behaviour in persons through his experiments; speaks of a positive expression: “sympathetic joy” which is considered in brahmaviharas in Buddhism. This is the “tendency to experience feelings of goodwill and pleasure in response to another person’s feelings of happiness” (Davidson, 2015, p.46). Davidson (2015, pp. 52-55) observed in children this feeling as readily. With adults too he experimented among two groups; one trained through compassion and another with cognitive training; found changes in the brain, in the amygdale and insula. Davidson experiment found more altruistic behaviour in compassionate-trained than in cognitive trained. Social Entrepreneurs as Transformative leadersHow do we relate ethical personality to entrepreneurship which is generally understood in terms of business or trade that is in turn understood in only economic terms rather monetary terms? Recent researches and experiments in these lines of ethical entrepreneurship are many. In fact many a youth, civilians and even political and administrative persons are joining these lines giving new meaning to entrepreneurship. The new terminology or alternative entrepreneurships that are coined today are “social entrepreneurships”; “transformational leadership”; “purposive economics” and “pre-sociality to economic systems”. Apart from a moral dimension these alternative entrepreneurships also have another sacred face of environmental protection and there by sustainable development that fills the gaps for inter-generational and intra-generational inequality Organizations that work with a non-profit motive may be called non-Governmental organizations or foundations and philanthropic organizations. Furthermore there are even capitalist-philanthropists who spend their surplus money in terms of charity and country building. Popular foundations of Tata’s, Birla’s and Rockefeller’s foundation may be considered in this category. However today we have the legal provision too as forced funding for poor in the name of Corporate Social Responsibility (CSR). Nevertheless these philanthropic or not doing as charity but are providing livelihoods too; also are protecting physical and psychological environments of human world in their might. However an entrepreneurship that is founded and worked in pure ethical terms has not only an intrinsic value but an universal and impacting value that we learn in the following lines through concepts viz., “social entrepreneurships”; “transformational leadership”; “purposive economics” and “pre-sociality to economic systems”. Social Entrepreneurship“Social entrepreneurship is the process of effecting sustainable change through founding new and innovative enterprises under severe resource constraints primarily for the purpose of creating social value”(Bhutiani et.al., 2012). Social entrepreneurs have certain traits as strong passionate ethical behaviour (Bornstein, 1998, cited, Bhutiani et.al., p.8) and social entrepreneurship can be associated with non-profit organizations (Austin et.al., Bosche, 1998 cited, Bhutiani, et.al., p.8). Other important traits of social entrepreneurs are, these entrepreneurs have some inspiration to gain satisfaction in solving social problems; these influence as social agents to change in social sector through fairness and skill; these apply some innovative mechanisms; bold actions and implement their ideas to their mission to create sustainable and social values and thus are turned up as transformation leaders/entrepreneurs according to Divya Bhutiani, Aard Groen from NIKOS University of Twente in the Netherlands and Kimberly Flicker and Padmakumar Nair from University of Texas in USA (Bhutiani et. al. 2012, pp 8-11). Bhutiani and others have in their mind the idea of “transformational leadership” by listing Mother Theresa, Mahatma Gandhi and Wangari Maathai as social entrepreneurs. In other words with the qualities like inspiration, innovation, influence and implementation Mother Theresa, Mahatma Gandhi and Wangari Maathai became transformation leaders also. “Transformational leadership refers to the leader moving the follower beyond immediate self-interests through idealized influence (charisma), inspiration, intellectual stimulation, or individual consideration” (Bass,1999, cited., Bhutiani, p.29). Mother Theresa started her mission of caring for the poor with small beginning; with an open-air school in a slum in Kolkata and spread her mission to branches in 133 countries (Bhutiani, 2012, pp187-19). Mahatma Gandhi’s “decisions and actions always took the suffering of the poor in account” (Bhutiani, 2012, p.21). Bhutiani and others (2012) also refer to Wangari Maathai of Kenya who studied ecology; the woman of Green belt movement. She was aware that environmental degradation and mismanagement of resources were root causes for Kenya’s problems. This kind of emotional meaning and economics are inspirational drives for social entrepreneurs according to Bhutiani and others (Dress, 1998 and Frucheterman, 2011cited, Bhutiani, 2012, p.25). Interesting part of Maathai was, as a member of parliament she gave a legitimate voice for Green Belt Movement; she spread business model of community-based tree planting where the Green Belt Movement has to pay people for planting trees and get paid again for selling the trees (Bhutiani et.al. 2012, p.27). Bhutiani and others strongly believed that this approach is especially useful to students for finding responsible position through social entrepreneurship and it is easier than finding it fit in for profit organization (Bhutiani et. al. 2012, p. 31). In the similar lines Rafael Ziegler, Sabrina Schulz, Lukas Richter from Institute of Botany and Landscape of Ecology in Germany and others (Ziegler et. al. 2014) felt the need for social entrepreneurship and interpreted Gandhi’s non-violent communication to the idea of social entrepreneurship. In this context Ziegler and others (2014) refers to Drayton who founded the organization called Ashoka. It interesting to note here that Ziegler and others (2014) appropriately referred the real meaning of the word Ashoka for, they related the public weal to this Sanskrit word Ashoka which means “the active relief of sorrow”. Ashoka as an organization visions: “everyone a change maker, as a world where each individual has the freedom, confidence and societal support to address social problems and achieve change” (Ashoka. About Us [web link] and Bornstein, 2004, cited, Ziegler et. al., 2014, p. 1023). Like Gandhi, says, Ziegler and others (2014, p.1023) Drayton sees Gandhi as potential change makers and sees people not as “moral patients” but as “moral agents” to create equal opportunities to participate in civic community and family decision-making. In this process Ashoka identified Roberto Epple a social entrepreneur who made an innovative approach for the conservation of rivers; through his normative demands for sustainable development. Roberto Epple’s idea of a Big Jump which is a collaborative campaign that invites young people and others to take action for water conservation in the context EU’s Water Frame work Drive(WFD). Though there is no business model or earned income in case of Epple it has an innovation for living rivers which included youth, civilian and local authorities as against business approaches that have no or limited role play according to which is Ziegler and others(2014, p. 1031). Pro-Sociality in Economic systemsFurther we find in the recent researches in the area of economics the ideas on purposive economics. Joseph Schumpeter (1934, cited. Bhutiani et.al. 2012, p.3) defines entrepreneurship as “another form of individual leadership acting by virtue of personal force and personal responsibility”. While Schumpeter held that new ideas can be studied in economics as well as in civil society and politics (cited. Ziegler and others (2014, p. 1031) we find ample evidence in the recent researches. Antoinette Hunziker-Ebneter (2015, p.137) attempted to show that it is possible to investigate in the right kind of business to promote social and environmental well-being and also to produce a financial profit. Antoinette (2015, pp. 137-139) is a CEO and funding partner of Forma Futura Invest Inc., She speaks of importance of valuing money in form of profit with a purpose after using it for the sake of one’s basic needs; financial and recreational activities. She speaks of incentive schemes and of a reasonable profit initially that grows subsequently. But Antoinette insists on her traders to follow certain values that her company values. Then her consumers and investors are well protected financially and ecologically. Antoinette says: “For example, in energy efficiency, a company can say, “By 2015, 50 percent of our turnover will come from green products, products that save energy”. Not only do they offer something very meaningful, but investors can also participate in that growth. Or there are companies that develop enzymes that enable you to do laundry at lower temperatures. We need this kind of holistic view of the economic, social, and ecological world of one product” (Antoinette, 2015, p.144). Purposive EconomicsArthur Vayloyan who made purposive economics through her micro finances rightly quoted Professor Muhammad Yunus who said: ‘that you cannot give money for free, because then it would be in the camp of charity and aid; but you also cannot go up to the level of those loan sharks, those people who profit in a massive way from others’ poverty’ (Vayloyan, 2015, p. 154). Hence Vayloyan through his Credit Suisse helped poor to stand on their own feet. This she could do through a microfinance fund that is gathered from friends and others who believed in her sacred aims. This fund through Credit Suisse is given to microfinance institutions, bank, or quasi banks in over thirty-five countries from east to west, north to south. Only in an year the $ 4 million money increased tenfold to today’s billion dollar million (Vayloyan, 2015, p. 152). Richard Layard, Professor of Economics at the London school of Economics speaks of the need for reappraisal of economics; need to think of a “whole economy for whole of society” that “produces the conditions of greatest happiness”. He also runs Centre for Economic Performance for well being (Layard, 2015, p.97). Layard questions why despite unprecedented increase in income levels of happiness are flatlined. Referring to Adam Smith, Layard brings forth to us two fundamental aspects of economic relations where both have equal significance. These are competition and cooperation. Layard holds when Smith gave equal importance unfortunately people in business tend to give primacy only to competition aspect only. But one has to distinguish between individuals and organizations. While competition is between organization cooperation is between individuals. While economic relations are determined in market places happiness come through relationship that is not conducted in market place but in family, in work place between colleagues; and within community. The reason for loss of happiness is due to unparalleled increase in living standards and financial income. For individuals’ level of relative income goes up when someone else’s income goes down. That is why he added that the two components to raise the level of happiness are: one is our relationship with others and the other is our inner life. Both of these have to be present and fulfilling says Layard (Layard, 2015, pp. 107). III. Gandhi’s ideas for ethical entrepreneurshipTo understand Gandhi’s ideas on entrepreneurship one must understand his ideas on man. Gandhi’s ideas on man and introspection of self, his precepts as values for life: satya (truth) and ahimsa (nonviolence); ‘education that is for life’ and above all his ‘moral compromise’ are some of the aspects that are relevant when we speak of entrepreneurship; also to make human societies essential, sustainable and purposive. Gandhi’s ideas on the conception of man, the human being are evident through his autobiography. Perhaps nobody hitherto could ever say: “My life is my message”. As Dr Babu Rajendra Prasad in his homage to Gandhi in The Collected works of Mahatma Gandhi, said, “Gandhi’s works are like treasure; who ever visits can take as much as they can” .His works indeed are guidelines for building of humane societies. Gandhi the man from introspection to ethical entrepreneurship:While Hind Swaraj tells us of the significance of mastery of self over one’s self before Indians ask for Swaraj or Home rule of the nation as against foreign rule, Autobiography tells us of Gandhi who could introspect his behaviour – personal and political and how he could master his self and practice with the moral precepts truth and nonviolence and above all through human love. His constructive programme, Sarvodaya and other responses for social and political issues are his sensitive responses based on his moral precepts. “Swaraj really means self-control. Only he is capable of self-control who observes the rules of morality, does not cheat or give up truth, and does his duty to his parents, wife and children, servants and neighbours. Such a man is in enjoyment of swaraj, no matter where he lives. A State enjoys swaraj if it can boast of a large number of such good citizens” (Gandhi, 1915, p.31). While his introspective nature we find from his Autobiography started from his primary education on wards his experiment with truth as a student with teacher; his confession to his father and his first lesson of ahimsa when his father forgiven him of his act of concealing truth. And from his first experiment with nonviolence in South Africa till death last breath – all his life is a saga of introspection; search for looking himself as a better and purposive person. His entrepreneurship as a social and transformative leadership is evident to world through his phenomenon of swaraj and swadeshi. While swaraj is not just a political aspect but a personal aspect where one has to earn respect for self as well as respect for freedom of others it made whole India upright seeking swaraj. Through swadeshi an individual attains social and political and above all a spiritual ownership of the product and autonomous nature of the producer. His leadership paved the emancipation of persons, villages, regions and the entire nation a self reliant nation. Gandhi encouraged Khadi, village crafts and other village industries not only for monetary independence but also for sustainable development. It is this kind of scientific movement that we are relooking through discussions above by economists and business entrepreneurs. To Gandhi, a votary of Swadeshi is one who helps his neighbours, wherever possible by giving preference to local manufacturers even if they are of an inferior grade or dearer in price than things manufactured elsewhere: “He [votary of Swadeshi] will try to remedy their defects but will not, because of their defects, give them up in favour of foreign manufactures (From Yeravada Mandir, pp. 65-66, cited, Gandhi, [compiled], 1952, p.17). Sarvodaya development of all should be the goal of entrepreneur as we learnt in the conceptual understanding of social entrepreneurship through contributing some amount to the public good. Basic precepts as values for life:Satya (truth) and ahimsa (nonviolence) are two precepts that Gandhi adhered throughout his life. While satya is the search and pursuit of his mission to find a solution for any social or political issue ahimsa is the tool for Gandhi. Nonviolence is not a mere principle which makes people as “moral patients” or passive observers of violence but makes them active “moral agents” who work with never ending enthusiasm and determination; it is rather an ethical mean that determines the goals of a person journey; a moral and purposive goal. It is a transformative force that changes the attitudes of even violent and anti-social persons. A moral goal is a wise choice of person that brings healthy changes in the observer and others around. It makes purposive economic use of resource of a region to which an entrepreneur starts his enterprise. Education for life:Education has four fold objectives to train child to give power of: knowledge, strength; mutually active and productive interchanges and labour and services (Tiwari, 2002). While traditional wisdom identifies education for overall development present educational choices are for, knowledge alone for Science technology, Engineering and Mathematics and knowledge based without any reference to values necessary for life. Not only in India even in the states like United States that glorify their practice of child rights, the pressure students are put is huge by introduction of too much syllabi. President Obama has launched an “Educate to Innovate Campaign” to improve the participation and performance of America’s students in science, technology, engineering, and mathematics (STEM). This campaign will include efforts not only from the Federal Government but also from leading companies, foundations, non-profits, and science and engineering societies to work with young people across America to excel in science and mathematics; medical, engineering, technology and management; nevertheless India too racing with this knowledge drive at the cost of mental health of the youth. In US one in five teen qualify as clinically depresses: teens need adult guidance more than ever to understand all the emotional and physical changes they are experiencing. (MHA, 2013). A poll of 804 teachers revealed that 73% considered school and life in general far more stressful for students than in the previous decade; which more than likely contributes to the climbing suicide rate. Eighty-nine percent believed high-stakes classroom assignments and exams played a major (if not the premiere) role in nurturing anxiety (Borba, 2011). To 20% of teens who are clinically depressed the real tragedy lies with how their parents and teachers approach the subject. Many parents dismiss the symptoms of depression as mere adolescent adjustments (MHA2013). In this context Gandhi’s lines of education have a thorough relevance to avoid student from stress; to enjoy education and to provide economic security while studying itself. It is Gandhi’s idea of education: Naitalim education meant for heart, hands and mind: “By education I mean an all-round drawing out of the best in child and man – body, mind and spirit. Literacy is not the end of education nor even beginning. It is only one of the means whereby man and woman can be educated. But unless the development of the mind and body goes hand in hand with a corresponding awakening of the soul, the former alone would prove to be a poor lopsided affair. By spiritual education I mean education of the heart. A proper and all-round development of the mind, therefore, can take place only when it precedes pari passu with education of physical and spiritual faculties of the child” (Gandhi, 1960, [compiled], p.193) Accordingly Gandhi believed to “begin the child’s education by teaching it a useful handicraft and enabling to produce from the moment it begins its training”. Hence, “every school can be made self-supporting, the condition being that the State takes over the manufacturers of these schools” (Gandhi, 1960, [compiled], p.194.) Gandhi's Idea of basic education also called as new education or Nai Talim thus postulates, summarily, for all round development; education through craft not merely books and abstractions, character building; self-supporting as far as possible; non-violence and communal harmony; mother-tongue as medium; free and compulsory primary education for all children for at least seven years and educational planning for rural Indian masses not elitist. This was started in 1937 after Wardha conference (Iyengar, 2010). Apart from this overall development Gandhi’s idea of education, Gandhi had also introduced other aspects as bread labour that respects all the professions rendering society. According to this concept the good of the individual is contained in the good of the all; a lawyer’s work has the same value as the barber’s in as much as all have the same right of earning their livelihood from their work. Accordingly the life of labour, i.e. the life of the tiller of the soil and handicraftsman is the life worth living (Gandhi, 1927, p.275). His Tolstoy Farm in 1911 in Johannesburg gave prominence to shoe making, carpentry, tailoring and cooking (Karunakaran, 2010). Furthermore, the Constructive Programme of Gandhi has a significant relation for social entrepreneurship we discussed above. Gandhi sought two ways of resolutions for social issues that seek development: one is through a legal action from the existing Government in through use of nonviolent way or satyagraha and another is constructive programme. Gandhi’s constructive programme includes very important aspects of human development as health, education, abolition of untouchablity, narcotics, decentralized production and distribution; village sanitation; women’s rights; village health and hygiene; and peasant development and other aspects. “This work is regarded as even more important than direct action” (Sharp, 1960, p.5). Gene Sharp rightly studied the efforts of Gandhi during Champaran movement during 1917-18, to protect Peasants against unlawful tenancy act [the tinkathia system]. Gandhi not only started to inquire the conditions of peasants first, he also started his constructive programme; Kastruba Gandhi too participated in village sanitation; Gandhi’s companions opened primary schools ; taught weaving and hygiene for children adults(Sharp, 1960, pp.34-35). Hence today for social entrepreneurship which itself has an ethical and economic motive can be taught in Gandhian lines for village as well as urban development taking any social aspect; child education, health or sanitation or environment. Gandhi’s e ideas on education that enables persons while learning not only gives economic security but also self reliance and contentment in future. To Gandhi true educational process has to be related to environment and society; to make the individual a good human being with the capability to earn one’s livelihood through physical labour. Furthermore it reduces the stress on students and avoids unnecessary completion which is not at all conducive for real development of youth. References
* Dr. Varalakshmi Moganty is a former Research Fellow, in Philosophy in University of Hyderabad and Centre for Gandhian Studies, GITAM University in Visakhapatnam. Currently she is working as an Associate Editor to Gandhian Vision - International Journal of Peace and Gandhian Studies; Gandhian Studies Centre, Andhra University, Visakhapatnam. She also worked as a researcher on National and International projects on development issues in Centre for Economic and Social Studies (CESS), Hyderabad. She is the author of The Concept of Justice: A Philosophical Analysis (Serials Publications, 2017). E mail: mogantyvl@yahoo.com Note: M.Varalakshmi, Tradeoffs and Morals: Gandhian Lines for Ethical Entrepreneurship, was first published in S. V. Sudhakar and A.B.S.V. Ranga Rao (Eds.) Gandhian Ideology: A Multidisciplinary Perspective, Chapter 11, pp. 147-168, (2017), Gandhian studies Centre and Pridhvi Publishers, Visakhapatnam: ISBN 978-81-934206-4-5. |