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A PROJECT OF

ETHICS AND VALUE MANAGEMENT

ETHICS IN MINESE-TOBBACO-C011

Report Submitted in partial fulfillment of Requirement for

Post Graduate Programme in Management

Under the guidance of

Prof. L R G sir

Eastern Institute For Integrated Learning In Management, 9

Hare street, kolkata-700001



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Submitted by

Avijit Majumder-----EIILM/PGP/09-10/C011



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CONTENT: Page no.

y Ethics in Marketing/Advertising:4

y Ethics in advertising and promotion 6

y Ethics in tobacco advertising

y Summary 10

y summary of Vedanta10-14

y

summary of posco15-16y Mines 16-21

y Data of operating mines 21-22

y Pure ethics (BHAGVAT GITA) 23

y Learning from the bhagvadgita 26

y Future of mining in India 30

y Conclusion 31

y References 33



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PART- A

Ethics in Marketing/Advertising:

Marketing ethics is the area of which deals with the moral principles behind the

operation and regulation of Some areas of marketing ethics and overlap with.overlap with media ethics.

Fundamental issues in the ethics of marketing

Possible frameworks:

y -oriented framework, analyzing ethical problems on the basis of the valueswhich they infringe (e.g. An example of such an approach is the AMA.

y Stakeholder -oriented framework, analysing ethical problems on the basis of whom they affect (e.g. consumers, competitors, society as a whole).

y Process-oriented framework, analysing ethical problems in terms of thecategories used by marketing specialists (e.g. research, price, promotion,

placement).

None of these frameworks allows, by itself, a convenient and completecategorization of the great variety of issues in marketing ethics.

Power-based analysis

Contrary to popular impressions, not all marketing is adversarial, and not allmarketing is stacked in favor of the marketer. In marketing, the relationship

between producer/consumer or buyer/seller can be adversarial or cooperative.For an example of cooperative marketing, see If the marketing situation isadversarial, another dimension of difference emerges, describing the power

balance between producer/consumer or buyer/seller. Power may be concentratedwith the producer (caveat emptor ), but factors such as over -supply or legislationcan shift the power towards the consumer (caveat vendor ). Identifying where the

power in the relationship lies and whether the power balance is relevant at all are

important to understanding the background to an ethical dilemma in marketing



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ethics. What is marketing? 1. The act or process of buying and selling in a market.2. The commercial functions involved in transferring goods from producer toconsumer.

Is marketing inherently evil?

A popularist anti-marketing stance commonly discussed on the blogosphere is thatany kind of marketing is inherently evil. The position is based on the argument that

marketing necessarily commits at least one of three wrongs:

y Damaging persona. The victim of marketing in this case is the intended buyer whose right to self -determination is infringed.

y Causing harm to competitors. Excessively fierce competition and unethicalmarketing tactics are especially associated with saturated market.

y Manipulating social values. The victim in this case is society as a whole, or the environment as well. The argument is that marketing promotes andwaste.

y Marketing has a major impact on our self -images, our ability to relate to one

another, and it ruins any knowledge and action that might help to changethat climate.

y Marketing/Advertising creates artificiality and influences sexual attitudes.

Specific issues in marketing ethics

Ethical danger points in market research include:

y Invasion of privacy.y Stereotyping occurs because any analysis of real populations needs to make

approximations and place individuals into groups. However if conductedirresponsibly, stereotyping can lead to a variety of ethical undesirableresults. In the Statement of Ethics, stereotyping is countered by theobligation to show respect ("acknowledge the basic human dignity of all

stakeholder)

Market audience

Ethical danger points include:



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y Excluding potential customers from the market: selective marketing is usedto discourage demand from undesirable market sectors or disenfranchisethem altogether.

y Targeting the vulnerable (e.g. children, the elderly).

Examples of unethical market exclusionor selective marketing are past industryattitudes to the gay, ethnic minority and obese markets. Contrary to the popular myth that ethics and profits do not mix, the tapping of these markets has provedhighly profitable. For example, 20% of US clothing sales are now plus-size.Another example is the selective marketing of health care, so that unprofitablesectors (i.e. the elderly) will not attempt to take benefits to which they are entitled.A further example of market exclusion is the pharmaceutical industry's exclusionof developing countries from AIDS drugs..

Examples of marketing which unethically targets the elderly include: fraud, massmarketing fraud and others. The elderly hold a disproportionate amount of theworld's wealth and are therefore the target of financial exploitation.

In the case of children, the main products are unhealthy food, fashion ware andentertainment goods. Children are a lucrative market: "...children 12 and under spend more than $11 billion of their own money and influence family spendingdecisions worth another $165 billion", but are not capable of resisting or understanding marketing tactics at younger ages ("children don't understand

persuasive intent until they are eight or nine years old "At older ages competitive

feelings towards other children are stronger than financial sense. The practice of extending children's marketing from television to the school ground is alsocontroversial .

Ethics in advertising and promotion

Ethical pitfalls in advertising and promotional content include:

y Issues over truth and honesty. In the 1940s and 1950s, used to be advertisedas promoting health. Today an advertiser who fails to tell the truth not only

offends against morality but also against the law. However the law permits "The difference between mere and is a "The problem... is the slippery slope

by which variations on puffery can descend fairly quickly to lies."y Issues with violence, sex and profanity. is a mainstay of advertising content

and yet is also regarded as a form of Violence is an issue especially for

children's advertising and advertising likely to be seen by children.



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y Taste and controversy. The advertising of certain products may stronglyoffend some people while being in the interests of others. Examples include:

products, and medication. The advertising of has become acceptable in theinterests of prevention, but are nevertheless seen by some as promotingSome companies have actually marketed themselves on the basis of controversial advertising - see has also frequently attracted criticism for unethical content (portrayals of Jesus which infuriated religious groups;

racial innuendo in marketing black and white versions of its PSP product;graffiti adverts in major US cities).

y techniques, such as In negative advertising, the advertiser highlights thedisadvantages of competitor products rather than the advantages of their own. The methods are most familiar from the political sphere:

The use of ethics as a marketing tactic

Business ethics has been an increasing concern among larger companies, at leastsince the 1990s. Major corporations increasingly fear the damage to their imageassociated with press revelations of unethical practices. Marketers have beenamong the fastest to perceive the market's preference for ethical companies, oftenmoving faster to take advantage of this shift in consumer taste. This results in theexpropriation of ethics itself as a selling point or a component of a corporateimage.

y is an example of a company which marketed itself and its entire product

range solely on an ethical message.y is an example of a strategy used to make a company appear ethical when its

unethical practices continue.y is another strategy whereby a product can masquerade behind an image that

appeals to a range of values, including ethical values related to lifestyle andanti-consumerism.

"Liberation marketing takes the old mass culture critique ² consumerism as

conformity ² fully into account, acknowledges it, addresses it, and solves it.

Liberation marketing imagines consumers breaking free from the old enforcers of

order, tearing loose from the shackles with which capitalism has bound us,

escaping the routine of bureaucracy and hierarchy, getting in touch with our true

selves, and finally, finding authenticity, that holiest of consumer grails."



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Marketing strategy

The main theoretical issue here is the debate between and In a truly free market,any participant can make or change the rules. However when new rules areinvented which shift power too suddenly or too far, other participants may respondwith accusations of unethical behaviour, rather than modifying their own behaviour to suit (which they might not be able to anyway). Most markets are not fully free:the real debate is as to the appropriate extent of regulation.

Further issues in marketing ethics

Marketing ethics overlaps with environmental ethics in respect of waste problemsassociated with the packaging of products. Some, such as members of theadvocacy group have argued that marketing by is negatively impacting physicians'

prescribing practices, influencing them to prescribe the marketed drugs rather thanothers which may be cheaper or better for the patient. Ethically thinking isresponding to situations that deal with principles concerning human behavior inrespect to the appropriateness and inappropriateness of certain communication and

to the decency and indecency of the intention and results of such actions. In other words, ethics are distinctions between right and wrong. Businesses are confronted

with ethical decision making every day, and whether employees decide to useethics as a guiding force when conducting business is something that businessleaders, such as managers, need to instill. Marketers are ethically responsible for what is marketed and the image that a product portrays. With that said, marketersneed to understand what good ethics are and how to incorporate good ethics invarious marketing campaigns to better reach a targeted audience and to gain trustfrom customers. Marketing ethics, regardless of the product offered or the markettargeted, sets the guidelines for which good marketing is practiced. When

companies create high ethical standards upon which to approach marketing theyare participating in ethical marketing. To market ethically and effectively oneshould be reminded that all marketing decisions and efforts are necessary to meetand suit the needs of customers, suppliers, and business partners. Ethical behavior should be enforced throughout out company culture and through company

practices.



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Part (b)

sub topic (TOBACCO)

ETHICS IN TOBACCO ADVERTISING: SMOKING VERSUS NON-

SMOKINGCAMPAIGNS

Tobacco marketing ethics for both pro and anti-tobacco ad campaigns are flawed.Business communication ethics refers to the responsibility to include informationthat ought to be there. The result of ethical communication is to strive for the

highest attainable good for all involved. From just a few years ago until now,tobacco companies¶ grasp on the advertising market has become even morecomplicated than before. This forces these companies to take aggressiveadvertising measures to gain interest of the buying public. Examples like theseraise ethical concerns in advertising and how even now the children of America are

being targeted at an early age. The major aim of tobacco settlement agreements

was to get cigarette companies to stop advertising to youth. The settlementagreement says that no participating manufacturer may take any action, directly or indirectly, to target youth within any settling state in the advertising, promotion or marketing of tobacco products. One company appears to have decided that it is nolonger cost effective to market its products through magazines. A company¶sspokesman says that the new cutbacks are the result of a business decision rather than a political or moral one. The market share that the benefit of advertising in

print may be negligible. Advertising is a powerful force that modifies behaviorsand shapes attitudes. It is morally wrong to use manipulative and corruptingmethods of advertising for any product or purpose. There is a need for externalstructures and systems to support and encourage responsible practices for tobaccoadvertising. There are only a select few of today¶s current population that knowlittle or nothing about theeffects of tobacco and their health. Most have seen the

wide array of television commercialscondemning the use of tobacco and haveformed some sort of opinion on the methods used toprevent its use. Tobaccocompanies have been using the media as an instrument to sell theirproduct, but insly and corrupt ways. Anti-tobacco organizations have been trying relentlessly tochange their vantage point on getting the message out to stop people from usingthese products.



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Are tobacco companies playing fair when it comes to ethics and advertising? Dothe majority ofpeople even want the business of tobacco to be eliminatedcompletely? These are tough issuesthat become even tougher when the subject of money is involved. Can we afford to rid ourselvesof tobacco? Tobacco marketingethics for both pro and anti-tobacco ad campaigns are flawed.By creating a biastowards the people that they target, tobacco companies in effect still controlthat part of the market that is pertinent to their operations. Anti-tobacco ad

campaigns are justthe opposite. They concentrate their ads, whether intentional or otherwise, on the other portionof the public, most of which do not use tobacco

products.

Part c

(summary) :-

The government is determined to implement a policy intended togive those displaced by mining a share in the profit of the minerals despite ales

than enthusiastic response from the industry according to mines ministry official

several benchmarks are available at state level to determined pricing formula for

different classes of minerals. this could be use to determine profit of captive mines

.

coal mines acquisitions have risen sharply in India in the current year and are

expected to go further due to strong demand , as user companies in steel and power

industries expand capacities and fuel the need for larger coal usage . it is alsomentioned that seven years ago a company acquired right to extract coal as raw

material for the expansion of its sponge iron plant . the center 's refusal to provide

environmental clearance to Vedanta'sproposed mining project in Orissa would not

hurt India's investment prospects . according to Ahluwalia - " I don't know much

about Vedanta but yesterday's development will under mine "India 's image as

investment nation"

Summary of Vedanta

In august last year Vedanta resources entered into an agreement with London listed

cairn energy to acquire a controlling stake in cairn India for close to $9.6 billion.

The oil ministry interpretation was initially contested by cairn, but the UK based

company later gave in sought approval. VEDANTA¶S August 16 announcement

that agreed to Buy as much as 60% of chain India from its UK parent Triggered a



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noise on protecting national interest and that of cairn¶s operating partner state-

owned oil& Natural Gas Corporation. Bauxite was intended for Vedanta

aluminum a joint venture partner of Orissa mining crop. The affected groups,

DongariaKondh and Kutia, Kondh are both Scheduled Tribes. The constitution

requires that the government respect s and upholds the land rights of the scheduledtribes.The Niyamgiri Hills is the role habitat of the two tribe And the least 20% of

the DongariaKondh population Live in villages in and around the forest blocks of

Proposed mining project area.

Mr. Salman Khurshid, has categorically stated that there is no corporate

governance issue involved in Vedanta as yet & that his job is to ensure that

companies grow in India.Mr. Khurshid said that he startedappearing in courts & at

least things will move & concerned courts will proceed to take appropriate

decisions. Border securities force 7 the central reserve police force, along with the,

state police are carrying out anti naxaloperations. A frontal organization of the

rebels were being trained on how to catch poisonous snake & deploy them on

strategic areas to scares away the security personnel. Suspected Maoists blew up an

ambulance with a land mine in Kandhamal on Saturday night killing t at least three

people inside, The incident follows the murder of a contractor at the same place on

Thursday. The plan to divide the country minerals rich regions into so called go &

no-go areas, replicating a similar exercise carried out by the environment ministry

for the coal sector. To identify areas where mining could be carried out withoutcausing any serious en environmental damage. The nub of the exercise is to

identify areas of dense forest cover where mining will not be allowed.The

demarcation between mining and no-mining areas covers metallic minerals such as

iron ore bauxite,zinc according to the note. Mr. handique could not be reached for

his comments.There should be a clear police regarding no-go areas which should

be debated first in parliament.A lot of investment is coming to the metal sector.

The go and no ±go concept will prevent these projecting from getting mining

leases in area where such operation face the possibility of being stoped onenvironmental and other grounds.The mapping exercise proposed by the mines

ministry will use data collected by the Indian bureau of mines.The mines ministry

exercise will support initiative proposed by the environmental ministry to collate

the density deta of forest areas and put it on its website.Prime Minister

Manmohansingh has directed the petroleum ministry to decide whithin this month



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if the $9.6- billion cairn-venture deal should be approved or rejected reports .The

GOVT. has rejected cairn India¶s proposal to raise peak production from its

Rajasthan oilfields by 37% to 240,000 barrels per day. The company controls

about 25-30% of the original block where it can only undertake development

&production work.Two other violations have been cited. One the refinery¶scapacity has increased from 1 million tons per year to 6million, tones without

requisiteclearances.All issues that have been raised by the saxena reportLooked

into and settled by expert agencies appointedby the supreme court.Country¶s

energy security is paramount and we willNot compromise on that said minister of

state for oilNatural gas, Jitin Prasad.Three key blocks of chain India in Rajasthan,

Raavaand cam bay do not attract the production sharing which where in traduced

later under the new exploration and licensing policy known as NELP,says AZB

which is advising on Vedanta in the deal.Consent of the government is necessaryfor any Change in ownership. So we need to examine all this & we will go purely

by the merits of case.The consortium has tried up$10 billion I lona from deutsche

Bank credit Suisse and UBS. ONGC is the leader of the consortium with at least

50% share. Oil and GAIL will share the other half.A key advisory panel of the

environment ministry, the forest advisory committee, has recommended that the

government not give clearance to the proposal to mine the Niyamgiri Hills for

bauxite.The environment minister said he did not discuss the matter with the Orissa

chief minister.Vedanta through its subsidiary sterlite India, has a join venture

agreement with Orissa Mining Corporation to mine the Niyamgiri Hills for

bauxite.The environment ministry has issued environmental violation notice to

Anil Agarwal promoted Vedanta alumina¶s Lanjigarh refinery. The ministry has

cited reports that the refinery has encroached & enclosed 26 hectares of forest land

within its boundary.Vedanta resources Plc has indicated that the Orissa govt. will

consider allocation of alternative sources of bauxite from the state of its alumina

refinery in view of the refusal of approval by the environment ministry & forests to

the Orissa mining corporation.Vedanta aluminum has halted its expansion program

me at the alumina refinery in Orissa Lanjigarh after the govt issued a notification

making it mandatory for companies to seek environment clearance for any major

change in processes.It looked like an open & shut case when Bill Gamell, CEO,

cairn energy Plc announced the company decision to sell the majority stake &

control in its Indian subsidiary cairn India to London listed mining major Vedanta

resources which is no stronger to India.Vedantaresources will come under further



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pressure to raise its open offer price to cairn India¶s minority shareholders with a

panel of cairn India independent directors now starting that the decision to pay a

higher price. Panel believes that Vedanta offer of higher price to cairn energy not

in line with best corporate governance.Celebrations in the Vedanta group over the

acquisition of the cairn India may turn out to be premature. The petroleum ministryhas already indicated it can approve of the deal only if it meets the twin criteria-

interest of ONGC & minority investors & complete compliance with the

production sharing contract.The securities and exchange board of India will direct

Vedanta Resources to inform the shareholders of oil explore cairn India about the

claim of state-owned oil and Natural Gas Corporation on it as well as details of

the recent denial of a mining licence to an affiliatedIn a development that could

soothe the frayed nerves of investor Rahul Gandhi on Thursday de coupled the

environmental ministry¶s rejection of Vedanta¶s bod to mine bauxite in the Niyamgiri hills from other projects waiting for the government¶s go-ahead. What

was going on there (Niyamgiri hills in oriss¶sKalahandi)was illegal.The Orissa

government has begun scouting for suitable alternative bauxite reserve for Vedanta

Resource¶s Lanjigarf alumina refinery after the centre last month denied

permission to Orissa Mining corp for mining at Niyamgirihills.Metals baron and

industrialist Anil Agarwal has moved a step closer to his ambition of owning a

diversified portfolio of natural resources in India.the acquisition significantly

enhances Vedanta¶s position as a natural resources champion in India.LONDON-

LISTED Vedanta Aluminium Ltd(VAL) whish has set up its Rs.4,500 crore

refinery project at Lanjigarf in poverty-hit kala-handi district ahead of scheduled

and is now expending to a one million tone refinery.Mining giant Vedanta

consistently violated several laws in bauxite mining at Niyamgiri, encroached upon

government land got clearances on the basis of false information and illegally built

its aluminum refinery at Lanjigarh, Orissa. The acquisition London- based

billionaire, Anil Agarwal, has just wrapped up the 11th

and biggest acquisition of

his career spanning three decades.Vedanta is likely to raise bridge loans of up to

$2.5b which will have atenure of between 12-18 month. the remaining $3.5b will

be long term loans of 5-7years. In a public interest litigation the organisations said

the denial of permission to the refinery project would affect the livelihood of local

people who are directly or indirectly dependent on the Rs.10, 000-crore project for

their survival.Vedanta group company sesa Goa could not make an open offer to

minority shareholders of cairn India on Scheduled as its British parent cairn



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Energyplc, failed to obtain the oil ministry¶s approval on time.(straight Talk: S

Sundareshan) our important energy assets are in Russia. it (acquisition of imperial

energy)is the largest investment made by any Indian company in Russia.

Vedanta which plans to buy at least 40% of the stake, needs about 55 days for themandatory open offer to shareholders. This means that if government does not

clear the deal in 10days, it will overshoot the aprial 15 deadline. the cairn-Vedanta

transition, India biggest energy deal billed at$9.6 billion.Top oil ministry officials

and executives from cairn and Vedanta could not resolve thorny issue such as

equitable sharing of royalty burden in their first round-table on Sunday to clear the

$9.6- billion cairn-vedantadeal.ONGC says the clause establishes that cairn and the

government will have to share the state firm¶s royalty payment. It invested risk

capital in India after the government promised exemption from taxes such as

royalty and cess.VEDANTA Resources will terminate the $9.6billioncairn-vedanta

deal if cairn India accepts the oil ministry¶s conditions in the Rajasthan block. on

the eve of his retirement, ONGC¶s chairman &managing director or RS Sharma

had told reporters this week that his company had the first right of refusal in the

deal, although it would not exercise it.Vedanta¶s existing 1-million tone Lanjigarh

refinery will, however, be allowed to continue operations after it undertakes

corrective actions. ONGC has a 30%interest in the Rajasthan block cairn India¶s

main Indian assets, which pumps about 1,25,000 bopd.Multi- billion dollar mining

giant Vedanta Resources has violated environment regulation at its Rs.50,000-crore project in Orissa giving a go- by to tribal rights, the government has

said.Vedanta¶s AGM venue the strains of Anil AggarwalMuradabad and criminal

echoed in the air around Big Ben, in what has become an annual event-the

protesting against Vedanta¶s mining activities in Orissa, and the rights of the

DongriaKondhtribe.The NC Saxena panel has recommended denying Vedanta

clearance for sourcing bauxite from the Niyamgiri hills in Orissa. these rights

would be existing uished if the area is transterred for mining .The churchsays it

expects a certain level of respect for human rights and local communities. thechurch¶s unprecedented and very welcomedecision sends a strong signal to

companies the temple on tribal people¶s rights: we will not bankroll your abuses

said Mr Stephen co rry.METALS major Vedanta groups plans for a mega

university near puri in Orissa suffered a serious jolt on Tuesday when the Orissa

High court quashed the land acquisition notification and also the award



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proceedings that were in favor of the company. Vedanta had initially asked for

20,000 acres of land and subsequently scaled down its demand to 8000 acres.

Vedanta aluminum chief operating officer Mukesh Kumar met top govt. officials,

including chief secretary BK Patnaik, asking them to ball out the 1 mt refinery plant. Vedanta is pursuing other major bauxite sites, besides exploring smaller

reserves in the region after the MoEF denied stage-2 clearances to Niyamgiri

Project and the expansion of refinery.³Prime Minister has asked Ramesh to review

the concepts of no-go & go areas & comprehensive environment pollution index,´

an official at the coal ministry said. The coal sector is facing objections in mines

falling 43 industrial clusters, where the ministry has barred any further industrial

development.

Summary of Posco project -

Evidence manufactured by anti project agitators with ulterior motivesThere were

no tribal people and other traditional forest dwellers who have cultivated the land

for three generations or 75 years in the forest area which forms part of land

designated for the proposed POSCO project.The book contains some 40

photographs showing illegal lifting of iron ore , unauthorized transport of minerals

,mining in the forest area and presence of heavy equipment owned by mafia in

different mines.The Orissa government admitted large-scale theft of mineral

resources and said action had been taken against the officials traders contractors

and others involved in the µloot¶ .MrMohanty said at least 682 mining lease

licences were cancelled by the state government in the last four years .The entire

House expressed concern over large scale µLoot¶ of minerals mafia element with

tacit support from influential politicians and bureaucrats.There has been no impact

on revenue collection from the shutdown of more than 300 mines in the aftermath

of the multi-crore mining scam. The state produce about 80 million tones of iron

ore fines and lumps annually.After lot of litigation ,union environment minister

Jairam Ramesh on October 24 had announced the cancellation of the permissionfor the expolition of bauxite from the Niyamgiri to OMC,VAL has submitted a

bank guarantee of rs 10 crore with the state Pollution Control board.The POSCO

project ,billed as the largest foreign investment to date ,can be expected to figure in

discussion when Prime Minister Manmohan Singh travel to Seoul for the G-20

summit next week. ThePOSCO project is seen to be of strategic importance as it



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fits in with the government µs µlook east¶ policy.the revocation of the forest

clearance is a serious set back as the project the requires the diversion of 1173

hecters of forest , but POSCO¶s troubles do not end there .South Koreans steel

major POSCO had plans to mines ores ,build steel plant and set up a port for an

estimated cost of rs 51000 crore .Anil Agrawal ±owned Vedanta resource , whichhas invested about rs 45000 crore in its alumina and power refinery,

hadcommitted to to spend rs 51000 crore in a mega university project .Vedanta is

now also going slow on its university plans after allegations that the land acquired

for the varsity belonged land. The state government recommended Posco ±India¶s

name for PL over the iron rich Khandadhar mines, for which about 227 parties

applied.The report will now be considered by the environmental clearance division

,the coastal regulatory zone division and the forest advisory committee for

respective violation and recommendations. The FRA process has not beencompleted ,in fact ,it has not been completed ,it has not proceeded beyond initial

stage for various reasons. It is therefore incorrect and misleading for the district

administration to conclude that there are no OTFDs in cultivating possession of the

forest land since three generations in the area. Discontent on the ground continues

with the PoscoPratirodhSangamSamiti undertaking a long march between pradeep

and puri cost to protest the 30000 villagers .POSCO India managing director GW

Sung said in a statement µwe are committing to create sustainable livelihood

opportunities for the project ±affected people through implementing R and R

package sincerely .-Project such as that of Pasco have considerable economic

technological and strategic significance for the country. Proactive out-of - box

thinking and follow ±through action are required both by Pasco and the Orissa

government, compensation of land does need to have multiple components.

ABOUT MINES

Mining in India

Mining in India is an important economic activity which contributes significantlyto the The mining sector underwent modernization following the independence of India although minerals have been mined in the region since antiquity. The countryexports a variety of minerals²found in abundance its geographically diverseregions²while it imports others not found in sufficient quantities within its



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geographical boundaries. Several techniques for mining are employed in thecountry and a significant part of the country lies unexplored for mineral wealth.

Overview

The tradition of mining in the region is ancient and underwent modernizationalongside the rest of the world as India gained independence in 1947. The and the1993 National Mining Policy further helped the growth of the mining sector.India's minerals range from both types. The metallic minerals comprise mineralswhile the non metallic minerals comprise mineral

D.R. Khullar holds that mining in India depends on over 3100 out of which over 550 are fuel mines, over 560 are mines for metals, and over 1970 are mines for extraction of nonmetals. The figure given by S.N. Padhi is: 'about 600 coal mines,

35 oil projects and 6000 metalliferous mines of different sizes employing over onemillion persons on a daily average basis.'Both and operations are carried out andis undertaken for extracting liquid or gaseous fuels. The country produces andworks with roughly 100 minerals, which are an important source for earningforeign exchange as well as satisfying domestic needs. India also exports etc.

Unless controlled by other departments of the mineral resources of the country aresurveyed by the Indian Ministry of Mines, which also regulates the manner inwhich these resources are used. The ministry oversees the various aspects of industrial mining in the country. Both the and the Indian Bureau of Mines are also

controlled by the ministry. and atomic minerals are exempt from the variousactivities of the Indian Ministry of Mines

History

Indian coal production is the 3rd highest in the world according to the 2008 Indian

Ministry of Mines estimates. Shown above is a coal mine inwas known and

exploited by the inhabitants of the by the 3rd millennium BCE. P. Biagi and M.

Cremaschiof discovered a number of in archaeological excavations dating

between 1985-1986. Biagi (2008) describes the quarries: 'From the surface the

quarries consisted of almost circular empty areas, representing the quarry±pits,

filled with aeolian sand, blown from the dunes, and heaps of limestone block,

deriving from the prehistoric mining activity. All around these structures flint

workshops were noticed, represented by scatters of flint flakes and blades among

which were typical Harappan-elongated cores and characteristic bullet cores with

very narrow bladeletdetachments.'Between 1995 and 1998,dating of Zyzyphus cf.



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nummularia found in the quarries has yielded evidence that the activity continued

into 1870-1800 BCE.Minerals subsequently found mention in. George Robert

Rapp²on the subject of minerals mentioned in India's literature²holds that:

Geographical distribution

The distribution of minerals in the country is uneven and mineral density variesfrom region to region. D.R. Khullar identifies five mineral 'belts' in the country:The North Eastern Peninsular Belt, Central Belt, Southern Belt, South WesternBelt, and the North Western Belt. The details of the various geographical 'belts' aregiven in the table below

Mineral

BeltLocation Minerals found

NorthEasternPeninsular Belt

Chotanagpurplatue and the plateau covering the statesof and Jharkhand orissa&W.B..

iron ore, manganese, bauxite, copper, etc. Khullar calls this region the mineral heartland of India andfurther cites studies to state that: 'this region possesses India's 100 percent Kyanite, 93 percentiron ore, 84 percent coal, 70 percent chromite, 70 percent mica, 50 percent 45 percent 45 percent

20percent and 10 percent manganese.'

CentralBelt

Chattishgarh ,Andrhyapradesh,M.P.

Manganese, bauxite, limestone, coal, mica, etc. existin large quantities and the net extent of the mineralsof the region is yet to be assessed. This is the secondlargest belt of minerals in the country.

SouthernBelt

Karnataka plateau andTamilnadu

Ferrous minerals and bauxite. Low diversity.

SouthWesternBelt

Karnataka .,GOA Iron ore,

NorthWestern

Rajasthan &Gujarat. Non-ferrous minerals, mica,



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Belt

Production

The net production of selected minerals in 2005-06 as per the is given in the table below

Mineral Quantity

Unit Mineral type

Coal 403 Million Fuel

Lignite 29 Million tones Fuel

Natural Gas 31,007 Million Fuel

Crude Petroleum 32 Million tones Fuel



20

Bauxite 11,278 Thousand tones Metallic Mineral

Copper 125 Thousand tones Metallic Mineral

Gold 3,048 Thousand Metallic Mineral

Iron Ore140,13

1

Thousand

tonnesMetallic Mineral

LEAD 93 Thousand tones Metallic Mineral

Manganese Ore 1,963 Thousand tones Metallic Mineral

Zinc 862 Thousand tones Metallic Mineral

Diamond 60,155 Carattes Non Metallic

Mineral

Gypsum 3,651 Thousand tones Non Metallic

Mineral

Limestone 170 Thousand tones Non Metallic

Mineral

Phosporite 1,383 Thousand tones Non Metallic

Mineral



21

Exports

Mine shaft at.The net exports selected of minerals in 2004-05 as per the is given in

the table below:

Mineral Quantity exported in 2004-05 Unit

ALUMINA 896,518 tones

Bauxite 1,131,472 tones

Coal 1,374 tones

Copper 18,990 tones

Gypsum & plaster 103,003 tones

Iron ore 83,165 tones

Lead 81,157 tones

Limestone 343,814 tones

Manganese ore 317,787 tones

Marble 234,455 tones

Mica 97,842 tones



22

Natural gas 29,523 tones

Sulphur 2,465 tones

Zinc 180,704 tones

DATA OF OPERATING MINES: No of operatingMines:

Sector 2007-08 2008-09 2009-10

All minerals 2942 2964 2729

Coal(incl. lignite) 570 570 570

Metallic

minerals

691 691 636

Nonmetallic

minerals

1681 1703 1523

All minerals- Excluding atomicminerals, petroleum(crude),natural gas &mineral minerals.

The estimated total value of mineral production during 2009-10 =

1,27,921,42 Cr.

Rise in total value of minerals production in 2009-10 compared with

previous year = 4.61%.





24

³As enlightened and privileged human beings we should try not to keep thetribaland other backward people in a primitive, uncared-and-unprovided-for socioeconomicenvironment. We have a strong obligation to provide themwitheducation, health care and sustainable livelihood opportunities so that theymaymove forward with the rest of the world in an all inclusive growth

path.´Vedanta has failed to consider the ³potential implications´ of its activities for the DongriaKondh because it refuses to accept that there are any. This view may be

a convenient onebut is unsupported by evidence. The NCP should urge thecompany even at this late stageto abide by the Akwe: Koh Guidelines14 and commission an indigenous rightsimpactassessment. Only by this means will it be possible to establish what themine will meanfor the Dongria, for their culture and for their religious practices.The NCP should agreewith Vedanta how best to ensure that the Dongria are able to

participate in theassessment, and are kept abreast of its findings in a language and a

form that they canreadily understand. This will allow the Dongria to weigh any benefits associated with themine against its disadvantages, as they are quite unableto do at present. In the meantime Vedanta should agree to stop work on the mineand its infrastructure. Itshould also agree that if at the end of the consultative

process it has not won the broadsupport of the DongriaKondh, the company willrespect their decision and look for its

bauxite elsewhere.This approach accords not only with well-established principles of international

law butwith commercial good sense. Mining companies which ride roughshod over local rightsrun the risk of significant delays and reputational damage, as well ashugely increasedsecurity costs and the prospect of future litigation. This is why Anglo-American,forinstance, has committed itself to ³work with indigenous people around theworld on the

basis of consent, recognizing their historical disadvantages and specific culturalnorms.´As a result the company has postponed plans to drill in the vicinity of Suggi Lake inCanada until it has secured the consent of the Indian community. RioTinto has agreednot to mine at Jabiluka in the Northern Territory, Australia, for thesame reason, and hasaccepted that the need to obtain FPIC ³may sometimes result

in our not exploring land or developing operations, even if legally permitted to do so. The bankers who advisedVedanta on its stock exchange listing, JP Morgan Chase, havemade a similar commitment. They will finance projects only ³if land claims of theindigenous community have been appropriately addressed and the communityhasexpressed its support for the project after free, prior and informed consultation.



25

From the fuzzy logic of Buddhaµs argument to the teaching of the Bhagvad Gita

and the simple wisdom in the simple wisdom in the parables of the Panchatantra.

Part four treks to the divine oasis in the desert: it traverses the wisdom pastures of

the Torah, the Psalms and the Gospel, turns to the simple and pure way of life

propounded in the Quran, which lays down a codified set of principles for businesstransactions, and comes to grips with the credo divine love sung by the Sufis who

are always humble in their knowledge and ever conscious of their limitations. Part

V turn to the forgotten philosopher of Greece ± Heraclitus. He was the alter ego of

Lao Tzu in the west ± and they spurned him for Socrates, Aristotle and Plato and

because they could not comprehend his subtle truth. I conclude with a new concept

± antilogy ± that seeks to blend the intuitive wisdom of the old master like Lao Tzu

and Heraclitus, Plato and Aristotle. It is this balanced knowledge that will takes us

down the road to excellence and success in the new age.

VALUE AND THE INTELLECT

Value relate to the heart while strategies are the result of intellectual impulses.

Today, everyone tends to focus on resource utilization and business strategies ±

both of which are key attributes of the mind. I hear management gurus say,

µBusiness management in simple terms is all about managing resources¶.

There are four kinds of human energies- physical, intellectual, emotional, and

spiritual. For 200 years or so, we exploited only the physical energy and skills of

people while we created the industrial society. In the past two decades or so, we

have entered into what we call the information or knowledge society that considers

an idea as an intellectual capital and time as a resource. We have harnessed only

the physical and intellectual energies; our emotional and spiritual energies have

remained largely unutilized.

In the new age , it will no longer be enough if we just tap our physical andintellectual energies. We will have to learn to live with uncertainties; we shall be

required to acquire skills and competencies that the business sector has not even

conceived of till now. We shall be required to discover horizons beyond our vision;

we shall be required to scale unknown heights. But to conquer the unknown- the



26

future- one will have to fallow the paved with values. There will be no other route

to success.

BUILD ON VALUES

How should we deal with our ethical problem? Let¶ face it: We will increasinglyneed to address ethical issues in the future- the issues that we have either ignored

or pushed under the carpet.

As mentioned earlier, the significance of person is not in what he attains, but rather

in what he longs to attain. Softly create your vision, lucidly articulate your vision,

and passionately own your vision, and untiringly drive your vision to fulfillment.

Never laugh at someone¶s dreams. Encourage daydreaming. A dream is a daring

adventure, a journey that will carry you far - for if you can hold a dream in your

heart, surely you can reach a star.

Conscience belongs to the heart and not the mind. Without a corporate conscience

no organization can have an enduring future. However, you also need to realize

that there is a cost to keep the corporate conscience alive. Ethical behavior

involves a high cost; but in the end, it always pays off.

A word of caution: you cannot yoke ethics to the desire to improve profits. A

participant at a symposium sponsored by business and society review put it very

succinctly: µto be ethical as a business because it may increase your profits is to do

so for entirely the wrong reason. The ethical business must be ethical because it

wants to be ethical.¶

WISDOM FROM ANCIENT INDIA

The Bhagvad Gita, one of the classics of Hinduism, essentially related to the

unpunished in content, and is variously dated between the 3

rd

century BC and the4th

century AD. it is the highest expression of philosophical Hinduism. It is a

chapter of the immense Indian epic, the Mahabharata, the saga of the war between

the pandavas and the kauravas.



27

Ancient Indian texts include the goldmines of the Vedas and unpunished. The

power of the mind has a distinct place in Hindu philosophy especially in the two

great religious, Buddhism and Hinduism.

LEARNING FROM THE BHAGVAD GITA ± (VasudaivaKutumbam)

Vasudaivakutumbam, proclaims the Bhagvad Gita. The world is a large family.

The phrase also appears in the panchatantra, the book of parables. The ancient epic

talked about a µborderless world¶ long before Kenichi Ohmae turned it into a

shibboleth for the new age economy where people live and work in an interlinked

world.

The world has chosen to go in a direction in the new age that was mapped out long

before in Hindu scripture. The world is turning into a global village or a

VasudaivaKutumbam- that cuts across political borders by building and merging

the political segments into regional blocs.

Today, the Internet has turned the entire globe into a small village or a family. The

way we work has changed dramatically. Electronic networks have created a

radically different world of business that binds us into a single networked family;

distances have vanished and new bond are being forged.

BUSINESS LESSONS FROM THE GITA

So, what does the Bhagvad Gita say to the corporate manager? Like all great

religious classics, it is filled with questions as well as answers. It provides

solutions to the many ills that plague modern society. It is pregnant with deep

philosophy for high end applications. One may find its philosophical flight beyond

the understanding of a common man.

The Bhagvad Gita sees truth and good in all things it is an exposition of the

fundamental beliefs of Hinduism. The basic principle of the Gita is karma, or

action; it defines the entire process of human life in the context of karma. It isgoverned by the simple logic that what we do is what confronts us later in life. This

is a principle that has a lot in common with the biblical exhortation: µDo unto

others what you would have them do unto you¶.



28

PROCESS ORIENTATION

Here is another intellectual inspiration:

To action alone have you a right;

And never at all to its fruits.

Let not the fruits of action be your motive;

Neither let there be in you

Any attachment to inaction.

This explains the µprocess orientation¶ that is followed by the Japanese and most of

the Southeast Asian countries. The only difference between the Japanese and theWestern management practices is that between µprocess orientation¶ and µresult

orientation¶. Unlike the western entrepreneurs, the Japanese perfect their processes

and obtain the best yields. If you take care of the processes, the results are bound to

be good.

The Bhagvad Gita needs to be understood in its appropriate context. Each of its

hymns provides us with an insight into how one needs to act in that appropriate

situation. The corporate world is probably the best place to practice what the

Bhagvad Gita preaches.

Yoga Vanishta prescribed the percepts to his disciple Rama: knowledge without

practice is superior to practice without knowledge. Practice with knowledge is

superior to knowledge without practice.



29

CORPORATE REALITY

The model of universal harmony is the model of business management in the new

millennium. The person who is virtuous without discrimination and takes care of

those who practice virtue and selflessness as well as those who do not practicevirtue and selflessness, shall be the role model for tomorrow¶s leadership- the

virtues leader. The virtues leader follows µnon- judgmental justice¶ and will lead

both the virtues and the non-virtues while holding steadfast to their virtues. What is

needed is the correct awareness of one¶s true nature.

Tomorrow¶s business organization will be the enlightened organization.

We have now learnt the simple truth and realized that ancient wisdom is not

something alien; it is relevant to the world of business. The true business guidance

ought to be intangible; the universal integral way is beyond the limits of our minds.

Success and failure in business depends on the µuniversal law of energy response¶.

I believe that your present way of understanding business management only in

terms of tangibles is skewed. The longer we remain insensitive to our soft assets

while stepping up the pace on the universal integral pathway, the farther we move

away from those intangibles that really matter in managing tomorrow.

the various tag words that we have- business management doctrines, business

principle, concepts, buzzwords, and watchwords- have their usefulness to the

extent that they condition business acumen. If one has to understand the perfect

cosmic management ethos, one has to remove the µconditioning¶ and perceive the

whole ±the big mental map snapshots do not reveal the big picture.

To survive in uncertainties today, always try to discover a new horizon. Keep

looking for an alternative strategy even when you are doubly sure of success- there

are no sure fire solutions in management matters.

CONCEPT OF A HIGHER POWER

The subtle cosmic one cannot be seen in any beautiful form, because to the

universal one there is nothing which can be considered as¶ form¶. The universal

one is truly imageless, yet in the attempt to make it conform to an image, people

distort reality and separate themselves from it.



30

Business management is no different. In an attempt to comprehend the invisible,

we conform to an image giving it some name. and while doing so, we distort

reality and separate it from the truth.

Business management is within the realm of universal life. The intangibles areinvisible; they go beyond the concept of measurement. When we start measuring

the intangibles, they cease to be intangibles. ¶reality defined is reality defied¶: that

is one of the angelic thought of Lao Tzu.

What lies within- and which researcher are unaware of is. The ancient wisdom is.

The cosmic principles are. Both ancient wisdom and cosmic principles are relevant

to the new age corporate world.

THE NEW REALITY

It is not just a question of whether you believe in values, virtues and wisdom in

business management. The question is; if you believe, will you change? Would the

manager change if they knew what awaits them in the new age?

Here is what Richard Batch says:

A cloud does not know

Why it moves in just such a direction

And at such a speed.

But the sky knows the reason and the pattern,

And you lift yourself high enough

To see beyond horizons.

It is time to discover new horizons. Trawl ancient wisdom to find the modern

solution in the new age. Take a holistic look with an intuitive eye to turn dreams

into reality.



31

We must learn sometimes from fiction and our dreams. Sometimes our undying

quest must go beyond the dreams. We must learn to dream, yet struggle not to lose

touch with reality.

Part ( e ) :-

future of mining in India :-

The government plans to reassess mineral reserves in mines already owned by

metal companies to determine whether such mines can be released to new entrants

that have applied for ore supplies for proposed project .

Tata steel has five iron ore leases in Orissa and Jharkhand all of which are

expected to come up for renewal over the next two years. The government

reassessment of reserve potential would also determine whether companies likeTata and sail deserve more mines to allotted to feed their capacity expansions

,while companies have put in application for more mine allocation.In the past due

to lower environment consciousness ,the trade off was always decided in favor of

exploitationthis is deplorable .Yet environmental fundamentalism can also exact a

high cost that will prevent a number of people to remain without access to basic

necessalities of life . the proposed amendment to the mines and minerals

(development and regulation ) act (MMR DA) for sharing of revenues, profits and

equity in mining operations , will make organised and scientific mining unviable.this is clear under different scenarios for global prices. The proposed amandments

to the MMR D act .which will drive out serious and organised mining firms are an

example : to attract long term investors,statutory,provision need to be simplified

and the burden ofb taxation and levies kept at rational level. windfall gains need to

be shared and directed towards the development of the sector rather that we

expropriated, for instance, major minerals, although the lease period envisaged is

effectively 50 years. the proposed legislation still envisages return of land to the

private owner of surface rights instead of an outright sale. does this not create aclear distincentive for the mining ferm for developing the mining area and

maximize the residual sale value? similiarly,liabilities for compensation

aqndrehabilliation of project affected person are defined in an ambigious manner.

it is thereforeb important that legislatores keep in mind the need to create an

environment that discourages boundary hunters and encourages longterm investors.



32

Wrong choice could results in irreperable damage to both our environment and

social fabric. This must be avoided.

Conclusion

The people in the east, however, have a different orientation: they are taught the

meaning of life and raised on the teaching of the Bhagvad Gita, Vedas, and the

Qur¶ an and the teachings of Confucius and Lao Tzu. They are taught to become

karmyogis, concentrating all their energies on actions and harboring no

expectations about the fruits of their labour. The results, they are taught as

children, will flow from the Divine Hand. Over the years, critics of eastern thought

have called that fatalism. However, tales of corporate shenanigans and fraud have

increased in the world, as modern-day managers have lost their ethical moorings. It

is time to revisit such notions and see how eastern philosophy can influence

corporate life in general.With their excessive ardour for figures, corporate today

have become soul-less organizations. The people in the organization are seen as

just a factor of production. They are pitch forked into a pressure-cooker

environment in world-class companies, where they are expected to meet

impossible targets and made to feel they are underachievers if they fail to deliver.

Companies sweat their human assets to maintain the temperature of the corporate

furnace.But it hasn¶t changed matters a whit. Today, the information society is

built on the same bedrock of exploitation with cyber coolies forced to work for

long hours in dehumanizing call centre¶s, forced to fake names accents and

attitudes to make themselves µacceptable¶ to customers in foreign lands.That brings

me to a simple question: should the corporate world serve the interests of society

and mankind, or should society and mankind subsume themselves to the corporate

world? We all need to ponder over this question carefully and delve into all that

happened with the advent of the industrial revolution in the 18th

century. When you

search for and find the right answers, you will become a corporate Buddha- theenlightened one.

The corporate world has always been somewhat self serving and self -centered. It

tries to conceal this by spouting off concepts like corporate citizenship and

corporate governance- which have more frills than purpose. We talk of value- based



33

organizations and then define commercial gains as corporate and fundamentally

skewed towards bottom line-gazing that they have robbed us of our sensitivity.

What we need today is not a corporate guru who can fashion a new flanged fad but

a corporate thinker who can provide lasting wisdom.

But is such a body of wisdom available? Yes it is philosophers like Lao Tzu,

Confucius, Buddha, Heraclitus, Socrates, Plato and Aristotle have always focused

on the innate goodness of mankind and society. These thinkers can direct us to the

high road of ethics that will imbue not only our lives but also our corporate

governance practices. The road may be less travelled today; but once you get on to

the highway of corporate ethics there will be no need to look in to the rear - view

mirror.

Vedanta claims that that it ³takes human rights, the environment and itsrelationship with the communities in which it operates very seriously, andconsiders them part of its licence to operate.´46 If this is true, the company shouldnow recognise that its policy has come badly adrift in Niyamgiri, and that it mustfocus its efforts first on seeking an independent assessment of the true impact of its

plans on the DongriaKondh, andsecond on a realistic programme to secure if it cantheir free, prior and informedconsent.. If the NCP cannot persuade Vedanta to dothis, the Dongria will have no other means of securing their right to be heard.Denied that right, they may feel driven to use every means available to them to

resist and disrupt Vedanta¶s operations. This cannot be inthe long term interests of anyone.



PART ( f )

REFERENCES

Ethics in Marketing/Advertising :-

http://en.wikipedia.org/wiki/Marketing_ethics

sub topic (TOBACCO):-

<http://www.tobaccofreekids.org>

Summary:-ET ± 3/12/10 , ET ± 9/12/10

Summary of Vedanta

Business Line- 28/8/10., ET- 29/11/10 , ET- 30/8/10, ET- 24/8/10,ET-

10/1/11,BL- 28/8/10, ET- 27/8/10,ET- 27/8/10 , ET- 27/8/10,ET- 8/9/10,ET-

20/9/10, ET-17/8/10,ET-16/11/10.

Summary of Posco project:ET-5/8/10, ET-25/1/11, ET-9/11/10, BL-

22/08/10,ET-19/10/10, ET- 7/08/10,ET-1/02/11.

ABOUT MINES

http://en.wikipedia.org/wiki/Mining_in_India

DATA OF OPERATING MINES

ET ± 23/8/10

Ethics of Vedanta with PURE ETHICS (BHAGVAT GITA)

www.eupolitix.com/NR/rdonlyres/3940BD43-2C2C-44AF-AE69-A71DE5FBC4E/0/sdreport.pdf

www.jpmorganchase.com/pages/jpmc/community/env/policy.

Letter from Vedanta¶s public relations consultants, Finsbury, at page F11.

ET ± Economic times

BL ±Bussiness line

Documents

Evm Project