Ethical and Moral System - Thinking Analysis of Current Market Phenomena

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Assignment:

Managerial Ethics

Ethical and Moral System-Thinking Analysis of Current Market Phenomena

MANISH KUMAR [pic 2]

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Assignment 01:

1. Justification for the topic selection

The decision of the Government of India for demonetizing the Rs 500 and Rs 1000 currency notes take everybody by surprise. With the announcement of the decision in the evening hours of November 8, 2016 created the mixed atmosphere of many feelings amalgamated together with Surprises, Confusions, Chaos and what not. Probably it was the biggest event in the current generation which touched upon core of life of almost all citizen of the country. As we are aware Rs 500 currency contributes 47.8%  and Rs 1000 contributes 38.5% (as on March 2016). So effectively, the decision of the Government created a void for 86.3% value of available currency in the market. We have further consider the remaining 13.7% was also not entirely in the possession of general public as good part of these currencies were kept with Banks and other financial institutions. In a sense, we can say that the people were cash out.

The magnitude of impact was quite high and it created panic all over. It is still appearing as a mystery which is unsolved with regards to intention, impact, result and repercussion.

 The mystery associated with the decision propelled me to choose this topic “Demonetization of Rs 500 and Rs 1000 bills in India”.

1. This was one such event in the country which touched everybody’s life and we all have experienced its effects first hand.
2. In my opinion, the action of demonetisation went beyond stated motives and ran into the sphere of different inferences by different sets of people making the action quite intriguing. The ethical spheres touched upon various facets such as transparency, accountability, equity, compassion etc.
3. It also appeared to have some key discussion points regarding state-subject relationship in the matter of duty of the state towards subjects/society.

Different units available for analysis – As directly stated in the announcement by the Prime Minister on 08.11.2016 : Demonetisation as an instrument to strengthen the Common Man for fight against

1. Corruption,
2. Black Money, 
3. Fake Currency and
4. Terrorism.

A few references were given in the said announcement which is as under:

1. Economy Growth
2. That the Government is dedicated to the poor, It will remain dedicated to them. In Government’s fight against poverty, its main thrust has been to empower the poor and make them active participants in the benefits of economic progress.
3. Corruption perception improved from 100 to 76 in last two years.
4. Strong and decisive step for course correction. For years, this country has felt that corruption, black money and terrorism are festering sores, holding us back in the race towards development.

The shocking and shaking decision by the State (The GoI) has left everybody surprised and perplexed.  Demonetization move by the government has been taken keeping in view the welfare of the people by driving the black money out of the system. The majority of subject, general public, inferred from the announcement that the demonetization decision will have following effect:

1. That the persons having Black Money will either loose the money or be taken to book by law enforcing machinery.
2. That the terrorist become out of fund and their activity may be curbed due to absence of money.
3. Corruption will nosedive and the corrupt start fearing expose and also will be booked by the law
4. Counterfeiting of new currency will be difficult and the economy will be controlled in a better way.

As the entire episode is still to be deciphered properly, the topic in totality is taken for further understanding. The action touched upon several key areas and opened up lots of discussion points viz.

a. Accountability and Transparency- The people inferred that this action may lead to be an attack over the black money hoarders. This may ensure accountability of them if found guilty and would bring a transparency in future transactions. In a swift move, all Fake Currency in operations, hawala transactions and similar types of illegal economy which is used in self sustainable criminal network and terror funding come at a standstill.

b. Honesty Vs Dishonesty- The honest would come out clean of this process and dishonest would be penalized. Such a move would be a moral lesson that vices like dishonesty, corruption are bad for both society and their perpetrators. It will create an atmosphere of honesty. For honest people this could be encouragement and boost for them to remain honest. A hope to live in a corrupt free country generated. It is obviously a step which will put dishonest people into turmoil. Honest people will be safe and can take pride in their honesty,