Business Ethics and Corporate Governance, Second Edition

THE CONTEXT OF INDIAN ECONOMY

Indian economy is still at the crossroads of free market and state controlled enterprises. Whatever be the rationale for such a system, it does matter with respect to marketing ethics and ethical infraction. Demand has traditionally been stifled by a license raj (read supply restrictions) and we still suffer its hangover. For example, two decades ago, STD rates were as high as INR 30 using a state-owned telecom firm. Today it is just a rupee in the same firm but under a much more liberated communications industrial system. Now, was the pricing of phone calls ethical by the state-run enterprises? Is it ethical now? Even private sector firms thrived in a climate of unethical marketing practices. Consider the scenario ...