Page 4 - QCFI Bi-Monthly eJournal Feb-March 2020

Quality Circle India 2
February -March 2020

A QUALITY PERSPECTIVE OF DOING BUSINESS.

Mr. A.K.Chattoraj, Secretary, Vadodara Chapter.
When the banks fall one after the other, business
tycoons loot the banks and get away and the news is continuously generating more and more wealth, it
papers flash every day about a new scam, people is in the developmental mode. It is working for the
sense absolute insecurity in the commercial world. It advancement of nation and advancement of people.
is time to discuss the mode of doing business from a
Quality perspective. The Edelman Barometer The business world argues that they work for their
pointed out in 2010, that business houses need to share holders and share holder's money. Recently
regain the trust of Government. In 2020, the they have converted the term shareholder to
Barometer indicates that people trust businesses stakeholder, to make it wider. Their accountability to
based on two factors, competence(delivering on the share holder is limited by the law. Their
promises) and ethical behaviour(doing the right thing accountability to stakeholder flounders in oblivion.
and working to improve the society). Businesses in The business world wants freedom to do business.
general rate well on competence, but do not figure The state tries to regulate the business towards
well on ethical attributes. Businesses have to go a inclusive growth. The state cannot consider business
long way to build public trust. This is what brazenly in isolation for satisfaction of private greed. The
reflects the Indian business scenario. There exists a nation considers that the wealth of a nation should be
serious trust deficit. properly distributed to its citizens for holistic
development and satisfaction. State fosters business
"There is one and only one social responsibility of for overall development and growth, for overall
business – to use its resources and engage in activities wellbeing of its citizens. Executive action of the
designed to increase its profits so long as it stays Government is evidently from the taxpayer's money.
within the rules of the game, which is to say, engages For everything the Government does including
in open and free competition without deception or development, it spends the taxpayer's money. If the
fraud." This is what Milton Friedman, an eminent government fosters business it also thinks about
economist and a Nobel laureate believes and is development of the taxpayer as a whole. Ideally the
commonly known as Friedman Doctrine. business and state need to be in tune with each other.
But life does not run ideally and same is true of
Considering the Friedman doctrine, two important nations and business. Conflicts of interest develop.
points emerge. Following the rules of the game is
important and open and free without deception and The canvass of business is getting expanded every
fraud is important. In the present day Indian context, day. Business cannot now be perceived in the
there is need to deliberate about the term 'business' traditional way. The traditional concept was to invest
in a more realistic and qualititative way. The concept money and get a return on investment in terms of
of business to- day is to acquire wealth. Business is profit. In short there was an input, throughput and
driven by the bottom lines. The endeavour of output. So the traditional concept of business was to
business seems to be basically to explore “what is earn profit. The means to attain that profit were either
there in it for me”. This 'me' is the main driver. This through innovation, differentiation or through free
driver directs to selfish motives of earning wealth. and fair trade. In the classic Indian context it was
This driver also generates greed of acquiring more “Subha Laav” that viewed the profit as holy profit.
and more. Generating wealth is welcome even if it is Kautilya had given a wonderful definition which
driven my greed. The business world argues that holds true for all business world- over. He considered
greed is good. Greed has the power to create need that business model should be the model of the
and need leads to innovation and development. if honey bee. The honey bee collects honey from the
greed minimizes, development and innovation may flower and preserves the honey in the beehive for the
get stalled. The business world argues that even if the use of the same when the inmates of the hive are not
greed is working extra time on the back of our mind, in a position to collect the same. The process of
it is generating employment and it is becoming a preservation is unique and not a drop of the honey is
partner of the nation in all progress. As long as wealth wasted. The collection of honey is also unique as