Q1.

Businesses are basically the outcomes of social creation and hence we must be responsible
to the stakeholders, including the society at large. As per the Stakeholder Theory by R. Edward
Freeman, the theory holds that managers ought to serve the interests of all those who have stake
in the firm. The stakeholders include shareholders, employees, suppliers, customers, and the
communities in which the firm operates.
The various purpose of the firm must be to serve and coordinate the interests of its various
stakeholders. It must be the moral obligation of an organization to strike an appropriate balance
among the stakeholders’ interests in directing the activities of the firm. The below are the
responsibility of an organization towards each stakeholder,

Shareholders: The organizations basic policy towards shareholders who would be interested in
their dividends and capital growth of their shares would be to communicate its vision, business
conditions and financial position in a precise, timely and clear-cut fashion, with an intention to
make the most of the feedback from our shareholders and investors to improve company
management and thereby achieve sustained enhancement of our corporate value.
An e-voting system can be established to allow shareholders to exercise their voting rights via
the internet. Presentation materials to accompany the results briefing can be created with a lot of
visual aids such as charts. An informal talk session after the General Meeting of Shareholders to
provide opportunities for shareholders to exchange opinions with the management team would
keep them involved in the debate.

Management and Employees: The first and foremost responsibility of an organization towards its
employees is to ensure that they are happy and satisfied with their jobs. Job profiles ought to be
delegated equally as per expertise, knowledge and educational qualification of individuals so that
no one is overburdened. Providing healthy working conditions and safety to the employees must
be adhered. We need to sit with the employees from time to time and try to find out whether they
are happy with their job or not and if at all they are facing any problems within the organization.

Suppliers: First, companies must seek fairness and truthfulness in all dealings with the suppliers
especially pricing and licensing. We must be mindful of the obligation to pay religiously and
timely for raw materials that have been delivered and used. We should make certain that any
business transactions with suppliers must be free from any form of coercion and unnecessary
litigation. Also, we must promote long term stability in our relationship with the suppliers to pay
back the good value, quality, and reliability they gained, keeping good relationships with
suppliers by giving regular business, since they can help bring down the cost by offering
reasonable prices for the resources.

Customers: The company should try to improve its quality and ensure that the product supplied
will not adversely affect the life and health of the customers. The customers should not be
cheated by charging high prices, fair prices convert a customer into permanent customer. The
company must see that the advertisement of the products is not misleading and it must be done
by providing the true and actual information. Efficient and effective after sale service during the
period of warranty must be a priority, the consumer complaints must be attended immediately.

Banks and other financial organization: The interest and principal amount received through
financial institutions needs to be paid on priority basis or a 5 to 7 years’ plan can be initiated to
repay the entire amount. Maintaining credit rating is very important for an organization to gain
trust among its investors. Transparency and truthful facts must be provided for any given
information to banks

Government: The organizations are required to follow the rules and regulations laid by the
government and must pay taxes and duties such as sales tax, income tax, custom duty, VAT, etc.
regularly. The organization must implement programs and policies relating to social and
economic development and should earn foreign currency by exporting goods in the foreign
market. The organization has to provide timely advice to the government in respect of framing
important policies such as Industrial policy, Import and Export policy, Licensing policy, etc.

Local community: An organization must play their proper role in civil affairs within the goals of
the business, they must promote amenities and help, create better living conditions. The
organization can help in making people law-abiding and improving legislation and
administration in municipal and industrial affairs and set up socially desirable standards of
living, themselves avoiding ostentatious, wasteful expenditure, and improvident display in
wedding, festivities and parties. An organization can introduce several programs such as “self-
help”, “Earn-while-you-learn”, Free Digital education for the poor, etc. in rural areas to both
promote and educate their interests.

Trade Unions: They represent the interests of the workers, hence the norms of the government-
approved unions must be followed by an organization. The basic and necessary government
approved rules and regulations of an employee pertaining to the specific work must be printed
and applied on the notice board in the work area. Discussions by the Trade Unions Association
must be attended by the management and mutual discussions must be associated if necessary to
avoid any ambiguity.

Pressure Groups: When we discover that pressure groups are interested in the company, engage
them quickly. Listen to what their representatives have to say and try to determine what their
agenda is. Be transparent, treat the pressure group with the same respect you treat other
stakeholders. If their requests do not compromise your firm’s core values, consider them, but
always let a pressure group know where you stand.

Q2. Consumers increasingly don’t accept unethical business practices or organizations who act
irresponsibly. Advances in social media mean that negative or destructive practices quickly fuel
conversations online. CSR should not be viewed as a drain on resources, because carefully
implemented CSR policies can help the organization. M/s Ujala has several CSR activities that
will be helpful to the society namely,
Community Projects: By showing keen interest towards free digital education for the poor it says
a lot about M/s Ujala’s sincerity, by doing such good deeds it is helping to educate the poor
without expecting anything in return.
Digital education helps the society to modernize and adapt to the global requirements that is
increasingly seen in today’s generation. Part of the society that help themselves to modernize by
giving quality education to their children form a small percentage in today’s population, hence
taking care of the part of the society that may not be able to fend themselves not only helps the
local population to balance itself, but also leads with an example to others about the impact such
contribution can make on a national stage. By planning to volunteer for such community projects
M/s Ujala can not only create future employees or employment locally required for its operations
but also educate the importance to the public about the need for such education and the
credibility it will carry to enhance the empowerment of the local community.

Environmental policies: Leaving a better foot-print for generations to come, is one of the policies
M/s Ujala will be incorporating in its business protocol towards a greener environment and
healthier society. Being energy efficient, making the product weight efficient and leaving less
carbon foot-print has been some of the core fundamental designs of the products.
Recycling of old products and producing refurbished products has been some of the business
initiative to reach the goals of the company and modernize the society. By recycling old
products, the company plans to dispose the more energy consuming and carbon emitting goods
with efficient and greener alternatives that helps reduce the global warming. The above approach
not only helps the society to save power or the unit of electricity consumed by a household but
also promotes them to be a part of the global cause to reduce the carbon emission. Our
responsibility for sustainable development does not confine itself only to environmental issues.
Environmental awareness is linked to occupational safety, product stewardship and corporate
citizenship.

Human Resources: The HR department at M/s Ujala understands the importance of health,
work/life balance and safety of its employees, not only to be more productive, but also to be a
happy and healthy citizen.
Health and other insurance benefits are covered to all the employees, and to families of staff at
supervisor and above cadres, such provisions help the staff and their families to be more
opportunistic and less enclosed. Safety protocols are educated to all staff on job on a periodic
basis to achieve incident free days and special training is given to the supervisory staff to
implement such actions, such measures not only help individuals, but also reflect through their
families and the society at large.
Equal opportunity, diversity, diversity training, and religious freedom are the pillars of the HR
department at M/s Ujala, and this is achieved by employee recognition and rewards, recruitment
from diversified caste and tribes, repetitive training on safety, management, productivity and
environment measures. Work/life balance and wellness programs are some of the initiatives
taken by the management by introducing maximum number of working hours, field trips and
recreational centers.

Exchange Offers: To give back to the society what it has got from its customers, M/s Ujala has
been very dedicated to the exchange offers it promotes to benefit, not only the customer who
have a clear advantage of saving money but also the society in general. Exchange offers are a
medium for unused household products to be replaced by necessary ones.
The customers enjoy flexibility to choose from a varied range of products, such as a phone for a
tablet or completely two different items, based on the needs of the client. Not only do you get
what you want but neither party have to spend a rupee on most deals.
The customers generally tend to get a better price for their old products and can avoid being
exploited by scrap buyers. At times, we do find it difficult to sell the old items at a reasonable
price or may not find buyers for a used product, hence companies like M/s Ujala who are well
known for their exchange offers provide an opportunity for consumers, not to compromise on
their values.
The society can easily upgrade to newer technology. People may like may features of the new
version of a phone or T.V, but the high prices may be deterring them from buying it, exchange
offers give you the opportunity to upgrade, in less price.

Labour and Human Rights: Engagement with unions and adherence to union standards are some
proactive steps taken by M/s Ujala in having standardize policies towards its work force and
avoid abuse, exploit, etc. Codes of conduct are mentioned in bold letters on all notice board that
set standards for the company or the industry on labor treatment and the implications if not
followed. Posters on a monthly basis is also applied on topics relating the importance on human
rights to educate the employees.
Responsible supply chain management, ensuring that suppliers adhere to the company’s code of
conduct, is reviewed on a periodic basis and the standards are set high to meet the requirements.
Product design and development are some of the advanced features that M/s Ujala tends to meet
and exceed to be competitive and lessen the carbon footprints on the locality it plans to thrive in.

Q3. a) The concept of Social Contract Theory (SCT) is being envisioned in the core principles of
M/s Ujala, which is transparent in its policies towards its stakeholders and the CSR activities
being initiated by the management to achieve such goals. Apart from providing vast
employment, the company also prides in its exchange offers, recycling of old products and a
vision for free digital education for the poor, which have not been solely initiated for profit
maximization but to also offer services to the society for its acceptance and development
purpose. M/s Ujala has contributed to the community by creating jobs for customers, suppliers,
distributors, and co-workers, these people make money to support themselves and their families,
pay taxes and use their wages to buy goods and services. Also, companies that give to
environment causes, or green initiatives, lead to a healthier and more beautiful environment in
the immediate area.
According to the SCT, corporations as organizations, enter into these contracts with other
members of the society, and receive resources, goods, and societal approval to operate in
exchange for good behavior. M/s Ujala through its new Social Responsibility Head will be
approaching several factors for a better Social Bonding, namely,
Priority to local employment: By fulfilling the needs of local employment, the organization plans
to develop the local job market by providing essential training and developing the society to
achieve sustainability and growth.
Priority to local suppliers: By giving priority to local suppliers that meet the requirements of the
organization, without compromising on safety, the company wants to develop a market or
infrastructure where the society need not be dependent on the economy, but create one that can
sustain.
Community programs: A vision to give free digital education to the poor would be implemented
by the approval of the stakeholders and the board members, to raise the bar of education in the
society and several such initiatives will be organized in the future to up hell the commitment
towards achieving the CSR goals.
Environmental policies: The environmental policies once initiated will promote and educate the
people on conserving power and the need for modern less CO2 emitting appliances for a greener
tomorrow. Practical policies, such as recycling of old appliances and exchanging the unnecessary
goods have already been implemented by the company for flexibility to the consumers.
Pressure Groups: If approached will be discussed and immediate solutions would be given as per
the standards of the company’s goal and objectives. Top priority and immediate solutions/actions
would be given to suggestions that can reduce the life expectancy or such related queries on a
case by case basis.
Customers: M/s Ujala can compete in giving the customers the best price due to low cost of
transportation and storage, by manufacturing locally, the maximum benefit is extracted by the
customers, because of the low cost of the products, they tend to save more for other necessities.

Q3. b) Gandhiji’s Trusteeship Theory (GTT) which is a kind of socialism is difficult to achieve
on the totality, but the basic characteristic of the theory can be implemented and achieved. M/s
Ujala is dedicated in giving to the society its share of commitments for the goodness of the
society, by following several community measures. Building a reserve of goodwill in your
community by following several measures such as, recycling old products, exchange offers and
wanting to give free digital education for the poor, may itself treat as more of community
measures than amassing profitability.
Gandhian socialism aims at a change of heart on the part of the rich. There is no place for
violence, but only trust. The common man trusts his trustee and the latter plays the role of a
custodian. Gandhiji advocated it as he believed in the basic strength of the goodness of man and
the value of morals and applying the learning from this theory into my organization would be a
true moral deed, namely,
Maximum wage: A target can be set for a maximum wage as per the responsibility of an
individual to the organization and number of years in the service. By setting the maximum and
minimum wage, the distribution of wealth can be evenly distributed among the staff and will
benefit the society and the cultural difference created by today’s capitalisim.
Distribution of wealth: Apart from the wages, loans, stakeholders, future development and
liabilities, if the company makes a considerable amount of profit, the bonus will be equally
distributed through all the levels evenly and an equal amount will be set aside for developing the
society and for CSR activities. A company’s leaders can identify within the community or ask
prominent local organizations what they need help with, and make targeted efforts to contribute.
The relationships formed between customers and prominent community members can be of great
value to the society. This will encourage not only the employee’s commitment to work, but also
the society will be benefited immensely.
Accountability: Thorough auditing process will be initiated through all the departments of the
organization, to drastically reduce waste of natural and company resources and mismanagement
of funds. The auditing will be initiated by teams of internal and external auditors, to differentiate
the findings. Accountability if measured in a proper manner can create drastic changes in the
way people handle work.
Shareholders: A significant amount of the company’s holding will be distributed to shareholders
to avoid any wrong influence of the board members towards the basic objectives of the company
and a minimum number of shares will be fixed to an entity, individual or groups.