Ethics

Moral Rule

Ethical Theory

Morality of the corporate Executive Act based on:

Moral Rule Applicable to the Corporate Executive

R01-Process Related

Kantian Formalism-doing what one is ought to do, whether one likes it or not.

That is being open to all the choices and acting for betterment of all

Principles of Universalizability(Applied)

The decision of demonetization was applicable to all the citizens of the country so it was universal

Reversibility(Applied)

Demonetization was implemented to for the betterment of the country and all the people

Is the act of demonetization is motivated by a law that can apply to all?

Yes, demonetization was applicable to all the citizens and to remove black money in the market.

R02-Process Related

Was the act of demonetization grounded on moral reasons that convince all?

Yes, the reason was convincing to all the people as it was implemented for betterment of the people

R03-Process Related

Deontological Justice-thinking about the rightness or wrongness of the action itself

Deontological rights of all stakeholders, especially the poor (Not applied)

The basic rights of the people using their own money were restricted. The poor who mostly depend on all cash transactions suffered the most

Did the act of demonetization safeguards personal and social rights of all stakeholders.

No, it did not safeguard personal and social rights. It affected adversely mostly the poor and people in the crisis situations like medical emergencies

R04-Process Related

Deontological rights of corporate Executives (Not Applied)

It affected all the businesses which run on high liquid money. It affected the people in turn

Did the act of demonetization uphold the rights and duties of  corporate executives

No, the law did not uphold and protect the rights of the corporate executives. There was loss in business and total output of the economy was hit adversely.

R05-Outcome Related

Situationalism (J. P. Sartre)

When right and duties conflict one taking the decision should take the ownership of the results

When people were affected did government respond.(Applied)

The government took the responsibility of the inconvenience caused to the people and tried to respond quickly. But it did not anticipate the problems before implementation

When rights/duties conflict, act freely, but own responsibility for the consequences

The ruling party took responsibility for the actions and tried to rectify the mistakes in the system. They tried helping out to the people who needed urgent liquid cash like medical emergencies and marriages

R06-Outcome Related

Existentialism (R. Niebuhr;  D. Bonhoeffer)-

When right or the wrong consequences and good or bad effects are ambiguous

Was the decision of demonetization right or wrong, good or evil.(Not Applied)

The decision of demonetization even though was for the good of the people the consequences of the actions adversely affected the people. People were out of cash and faced a lot of problems.

Did government act  amidst risk and ambiguity, and owned the consequences.

Yes,the government tried to reduce the ambiguity by accepting old notes in hospitals,petrol pumps and stopped the tolls across the country to reduce the inconvenience of the people

R07-Outcome Related

Legalism

Was the decision legal

Was the decision of demonetization legal(Applied)

The government decision of demonetization was legal and was taken under section 26(2) of RBI act

Did demonetization decision, obey legitimate law and ordinance

Yes, as the decision was legal it obeyed the law of the country

R08-Outcome Related

Contractualism

Did the decision freely acted on contracts

Did the people and government  freely agree on contracts. (Not Applied)

The people were not aware of the action of the government.

Did people mutually agree upon contracts.

The people were not aware of the demonetization before it was implemented. So there was no agreement

R09-Process Related

Parenesis: A Code of ethics that counsels and exhorts action.

Was demonetization credible and valid for industry and corporate ethical code of conduct(Applied)

Yes,demonetization was valid and  was to remove the black money from the system and hence was for the betterment of the people

Comply with agreed upon codes of conduct.  The obligation is hortatory.

No,there were many loopholes in the system and the action of demonetization was not foolproof.Before implementation all the possible outcomes and problem should have been studied.

Teleological Justice

R10-Outcome Related

Hedonism (Jeremy Bentham)-

Should be satisfactory to the majority

Satisfaction of the majority(Not applied)

The government did not look at the possible problems which the people would face on implementation of demonetization

Did demonetization decision maximize satisfaction of all.

No, the rich people were not affected much, but the poor people who did not have liquid cash were not using digital payment modes were affected the most.

R11a-Outcome Related

Utilitarianism-

Utilization for maximum people

Utility of the maximum(Not applied)

The decision of demonetization was thought to be beneficial for all but the consquences were not studied in detail

Did demonetization benefited to all.

Yes, the decision was taken to benefit all the people and reduce the black money in the system.

R11b-Outcome Related

Consequentialism-

Some decisions should not be taken even if the consequences are good.

Utility of the Consequences. (Not applied)

Before implementation the consequences of the action were not thought of. The possible problems were not explored.

Minimize harm of the consequences to all innocent stakeholders

No,the innocent stakeholders suffered a lot. Many people were standing in the long queues to exchange their old notes and to draw cash from ATMs.

R12-Outcome Related

Eudemonism-

Maximize the happiness of all the people

Happiness of the maximum(Applied)

Demonetization was implemented for betterment of all the people and bringing black money out in the system.

Maximize happiness of all.

Yes, though it was implemented for happiness on long run but the short term consequences were overlooked

Distributive Justice

R13-Process Related

Formal Justice-

Canon of equality

Aristotle’s Canon of Equality(Applied)

The rule was same for all the citizens of the country

One’s level of equality

Yes, the demonetization was implemented to reduce the inequality in the system and reduce the gap between rich and the poor by bringing out the black money out of the system.

R14-Outcome Related

Socialist Justice-

Was there a need

The Canon of Need (Applied)

There was need to clean the system and remove the black money

One’s level of need

Yes, the needs of all were considered. There was restriction for daily withdrawal of the cash hence it gave opportunity to all to get money.

R15-Outcome Related

Naturalist Justice-

Justice for all

The Canon of Natural Ability(Applied)

There was equal opportunity for all the people to draw cash and exchange old notes

One’s level of innate merit or ability

Yes, the needs were addressed. Like the old notes were accepted in hospitals. Tolls were closed as people were low on cash. Special cases of marriages were addressed

R16-Outcome Related

Retributive Justice

Justice for effort

The Canon of Effort(Applied)

Demonetization was not to take away money from the rich, it was to take away money from the people who bypassed taxes and got money through illicit manner

One’s level of effort

Yes, the government took the action to reduce the disparity between the efforts put to earn the money and wealth possessed.

R17-Outcome Related

Capitalist Justice

Responsibility of the action

The Canon of Productivity(Applied)

The black money in the system affected the system. The taxes were not collected and paid,such money was brought out

One’s level of contribution

Yes, demonetization was implemented to curb the black money in the system and so that all non-taxed money is brought into the system. It was implemented for the betterment of the people

R18-Outcome Related

Libertarian Justice-

Social Justice for all

The Canon of Social Utility(Applied)

It was bringing justice to all the people who were honest and paid taxes and stayed away from the corruption

One’s level of social value

Yes, the demonetization was implemented for social value. It was to promote honesty and punish the people who were corrupt and avoided taxes

R19-Outcome Related

Libertarian Justice-

Justice for all

The Canon of Supply-demand(Not Applied)

The government did not print enough new notes and thus there was disparity between the supply and demand for the cash which created a lot of problems

One’s level of market-exchange value

Yes, there was one level of justice for all the people. But, should justice of mass should be addressed overlooking justice at individual level? People suffered a lot during implementation.

R20-Outcome Related

Individual Justice

Justice at individual level

Rescher’s Canon of Legitimate Claims(Applied)

Addressing the legitimate claims

One’s level of legitimate claims

Yes, such claims were addressed like special lines for aged people and toll was removed so that cash available in the market is not reduced further

R21-Process Related

Fair Opportunist Justice-

Ethical for all the stakeholders

Rawls’ Equality Principle(Applied)

Ethical and fair to all the stakeholders

Offering equal opportunity

Yes, demonetization will redistribute the wealth among the people and create equal opportunity for all the people in the system

R22-Process Related

Libertarian Egalitarian Justice-

Remove the undeserved advantage

Rawls’ Difference Principle(Applied)

Demonetization did not take away money earned and taxed in ethical way

Nullifying undeserved advantages along all stakeholders

Yes, people who had money earned in illegal ways and not taxed money were only penalized due to this. It thus nullified the undeserved advantage to all the stakeholders

R23-Process Related

Libertarian Justice-

Ethical treatment to all the stakeholders

Nozick’s Principle of Distributive Justice-

To bring justice in the society

One’s level of original entitlements

Yes, demonetization was to bring justice in the society. It also pushed cashless transactions to bring justice in the long run in the society. Some people who were hiding cash and caiming to be poor were caught and they lost the false BPL claims

R24-Outcome Related

Non-malfeasance Justice-

Not causing evil to the people

Principle of Strict Liability(Not Applied)

Demonetization did not consider the harm caused to all the people in the society

Doing no harm or evil

No, it harmed the poor and small businesses which depended mainly on cash. Proper system for these people should have been implemented. Many small businesses shut down as they lost their working capital.

Corrective Justice

R25-Process Related

Preemptive Justice

Preventing evil in future

Principle of Preventive Justice(Not applied)

The actions taken in demonetization were short term and did not look into a long term solution to the black money.

Preventing all evil

No, it removed the black money from the system, but does not prevent black money from entering the system in the future.

R26-Process Related

Protective Justice

Protecting all from evil in the situation

Principle of Protective Justice(Not Applied)

There were no means to prevent hoarding of black money and corruption and fake notes

Protecting all from evil

No, fake notes immediately entered the system and the people were not protected against such an evil.

R27-Process Related

Procedural Justice; Corrective Justice

Taking corrective action

Principle of Procedural Justice and Corrective Justice(Applied)

When old notes were removed from the system, the new notes were introduced immediately on next day

Setting up just procedures for equitable distribution of benefits or correcting current structured injustice systems

Yes, the new notes were brought into the system immediately and printing was also increased to meet the future needs.

Distributive Justice

R28-Process Related

Beneficent Justice

For the good

Principle of Beneficent Justice(Applied)

Doing and promoting good

The actions were implemented for promoting good in the society. Prime Minister promoted people to pay taxes and act ethically