Jamnalal Bajaj, Mahatma Gandhi and The Struggle for Indian Independence

Group 1 Kshitiz Chaturvedi Sahil Jaswal Srinivasan Ramesh Vasudev Hemachandran

Section B 12P081 12P101 12P108 12P116

Zaid Ali
Mahatma Gandhi with Jamnalal Bajaj, Satyagraha Ashram, Wardha, 1934

12P119

Overview
Pre-modern Era

Pre British The East India Company The British Crown

Parsees Marwari Modern Indian Bajaj Group

Entrepreneurship

Trusteeship

The concept of Trusteeship Trusteeship as practiced by Jamnalal Independent India: Nehrus vision Trusteeship model : Relevance in todays scenario

Premodern Era

Pre British
Indus Valley
Flourishing Commerce & Agriculture

Aryans

Guptas

Islamic dynasties
Turkish & Afghan Invaders

Mughals

Multiple Kingdoms

Golden age of India

Founded by Babur Stable empire Dissolution benefitted rich Indian merchants and bankers

Territorial ambitions

North India united under one rule

The East India Company

Ownership
Privately owned Joint Stock Company Royal Charter by the Queen to trade Rights to mint money, command troops & form alliances

Role of Merchant Princes End of Companys Monopoly

Merchants took to the Company when in dispute with rulers As it consolidated power, princes lost their role

Opened the door for private British merchants Worked closely with local merchants Local and Indian businesses victims of boom and bust cycles

The British Crown

Consolidation of Power
Transport System New Judicial System
British traders reaped all benefits of Free Trade Spent little except on railroads and defense

Social Engineering

Almost no interest Banned sati Most existing social structures left in place Lack of tariff revenue Low tax regime Colonial state had high profit with low spending

Free Trade Orientation

Modern Indian Entrepreneurship

The Parsees
Origin
Arrived in the
subcontinent from Persia

Evolution
Surat
agriculture & farming

Business
Cotton and
commodity trading

Relations with the British

Mastered English
& adopted British customs

Attracted by
growing prosperity of Bombay

Interpreters &
middlemen for Europeans

Owners of the
Indian Merchant Navy

Wealthy
landowners; close contact with the British

Bombay
increased mercantile

E.g. Tatas

The Marwari
Origin
Thar desert in
Rajasthan

Evolution
Pan India selling
textiles & importing British goods

Business
Indian textiles Opium Jute mills

Relations with the British

Close
commercial ties with British merchant houses

Traders and
bankers, even to regional Rajputana kings

Calcutta - Selling
opium

Jatia Andrew In 1990s,

controlled 3/5th of Indian private sector businesses Yule & Goenka Bird & Heilgers

Jute mills after

WW I

On board of
European owned jute mill companies

Bajaj Group
Origin
Marwaris

Business
Cotton traders &
bankers

Relations with the British

Interested &
involved in struggle for Indias independence

Fire, marine &

general insurance

Sugar refining
industrial venture

Jamnalal Bajaj
followed the TRUSTEESHIP MODEL as applied to firms

Two wheeler
vehicle manufacturer

Trusteeship

Economic equality is the master key to non violet independence & a non violent system of government Business owners should regard themselves as trustees or safekeepers of the wealth in their possession

The concept of Aparigraha or nonpossessiveness

Trusteeship
Use only what required for sustenance; rest profit distributed amongst stakeholders of the business

The concept of Sarvodaya meaning progress for all using voluntary socialism

Entrepreneurs should adhere to the tenets of

Fairness Honesty Charity

Trusteeship as practiced by Jamnalal

Chose to conduct business under constraints of Gandhian ethics
Refused to retain earning that were unlawfully obtained

Passed on profitable but unethical ventures like alcoholic drinks business

Disagreed to amass wealth at the cost of impoverishment of the people

Independent India: Nehrus Vision

Heavy state involvement; inspired by Stalins model
Once bitten twice shy: the aftermath of British colonialism

led to aversion towards private business Contrary to the Gandhian model; focused on developing Heavy Industries (PSUs) License Raj; Heavy Red-Tape

Trusteeship model: Relevance in todays scenario

Internal Stakeholders: Employees, Managers, Unions etc. Economic Stakeholders: Suppliers, Customers, Distributors, Creditors etc. Societal Stakeholders: Communities, environment, government etc.

Firms continuously shifting their focus outwards; from economic stakeholders to societal stakeholders

Trusteeship model to CSR

Businessmen of the time adopted the Trusteeship Model

Some of those businesses are now huge conglomerates:

TATA group, Birla, Bajaj. Evolution of CSR: CSV being an emerging concept Examples:
Project Shakti: HUL Recycling: TetraPak e-choupal: ITC

THANK YOU