A PROJECT OF

ETHICS AND VALUE MANAGEMENT

ETHICS IN MINES
E-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.

 Ethics in Marketing/Advertising: 4

 Ethics in advertising and promotion 6

 Ethics in tobacco advertising
 Summary 10
 summary of Vedanta 10-14
 summary of posco 15-16
 Mines 16-21
 Data of operating mines 21-22
 Pure ethics (BHAGVAT GITA) 23
 Learning from the bhagvad gita 26
 Future of mining in India 30
 Conclusion 31
 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:

 -oriented framework, analyzing ethical problems on the basis of the values

which they infringe (e.g. An example of such an approach is the AMA.
 Stakeholder-oriented framework, analysing ethical problems on the basis of
whom they affect (e.g. consumers, competitors, society as a whole).
 Process-oriented framework, analysing ethical problems in terms of the
categories used by marketing specialists (e.g. research, price, promotion,
placement).

None of these frameworks allows, by itself, a convenient and complete

categorization of the great variety of issues in marketing ethics.

Power-based analysis

Contrary to popular impressions, not all marketing is adversarial, and not all
marketing 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 is
adversarial, another dimension of difference emerges, describing the power
balance between producer/consumer or buyer/seller. Power may be concentrated
with the producer (caveat emptor), but factors such as over-supply or legislation
can 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 to
consumer.

Is marketing inherently evil?

A popularist anti-marketing stance commonly discussed on the blogosphere is that

any kind of marketing is inherently evil. The position is based on the argument that
marketing necessarily commits at least one of three wrongs:

 Damaging persona. The victim of marketing in this case is the intended

buyer whose right to self-determination is infringed.
 Causing harm to competitors. Excessively fierce competition and unethical
marketing tactics are especially associated with saturated market.
 Manipulating social values. The victim in this case is society as a whole, or
the environment as well. The argument is that marketing promotes and
waste.
 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 change
that climate.
 Marketing/Advertising creates artificiality and influences sexual attitudes.

Specific issues in marketing ethics

Ethical danger points in market research include:

 Invasion of privacy.
 Stereotyping occurs because any analysis of real populations needs to make
approximations and place individuals into groups. However if conducted
irresponsibly, stereotyping can lead to a variety of ethical undesirable
results. In the Statement of Ethics, stereotyping is countered by the
obligation to show respect ("acknowledge the basic human dignity of all
stakeholder)

Market audience

Ethical danger points include:

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  Excluding potential customers from the market: selective marketing is used
to discourage demand from undesirable market sectors or disenfranchise
them altogether.
 Targeting the vulnerable (e.g. children, the elderly).

Examples of unethical market exclusion or selective marketing are past industry

attitudes 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 proved
highly profitable. For example, 20% of US clothing sales are now plus-size.
Another example is the selective marketing of health care, so that unprofitable
sectors (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 exclusion
of developing countries from AIDS drugs..

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

In the case of children, the main products are unhealthy food, fashion ware and
entertainment goods. Children are a lucrative market: "...children 12 and under
spend more than $11 billion of their own money and influence family spending
decisions 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 also
controversial .

Ethics in advertising and promotion

Ethical pitfalls in advertising and promotional content include:

 Issues over truth and honesty. In the 1940s and 1950s, used to be advertised
as 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."
 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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  Taste and controversy. The advertising of certain products may strongly
offend some people while being in the interests of others. Examples include:
products, and medication. The advertising of has become acceptable in the
interests of prevention, but are nevertheless seen by some as promoting
Some 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).
 techniques, such as In negative advertising, the advertiser highlights the
disadvantages 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 least
since the 1990s. Major corporations increasingly fear the damage to their image
associated with press revelations of unethical practices. Marketers have been
among the fastest to perceive the market's preference for ethical companies, often
moving faster to take advantage of this shift in consumer taste. This results in the
expropriation of ethics itself as a selling point or a component of a corporate
image.

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

range solely on an ethical message.
 is an example of a strategy used to make a company appear ethical when its
unethical practices continue.
 is another strategy whereby a product can masquerade behind an image that
appeals to a range of values, including ethical values related to lifestyle and
anti-consumerism.

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

conformity — 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 are
invented which shift power too suddenly or too far, other participants may respond
with 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 problems

associated with the packaging of products. Some, such as members of the
advocacy group have argued that marketing by is negatively impacting physicians'
prescribing practices, influencing them to prescribe the marketed drugs rather than
others which may be cheaper or better for the patient. Ethically thinking is
responding to situations that deal with principles concerning human behavior in
respect 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 use
ethics as a guiding force when conducting business is something that business
leaders, such as managers, need to instill. Marketers are ethically responsible for
what is marketed and the image that a product portrays. With that said, marketers
need to understand what good ethics are and how to incorporate good ethics in
various marketing campaigns to better reach a targeted audience and to gain trust
from customers. Marketing ethics, regardless of the product offered or the market
targeted, sets the guidelines for which good marketing is practiced. When
companies create high ethical standards upon which to approach marketing they
are participating in ethical marketing. To market ethically and effectively one
should be reminded that all marketing decisions and efforts are necessary to meet
and suit the needs of customers, suppliers, and business partners. Ethical behavior

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should be enforced throughout out company culture and through company
practices.

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 information
that 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 more
complicated than before. This forces these companies to take aggressive
advertising measures to gain interest of the buying public. Examples like these
raise 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 settlement
agreement 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 no
longer cost effective to market its products through magazines. A company’s
spokesman 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 behaviors
and shapes attitudes. It is morally wrong to use manipulative and corrupting
methods of advertising for any product or purpose. There is a need for external
structures and systems to support and encourage responsible practices for tobacco
advertising. There are only a select few of today’s current population that know
little or nothing about the effects of tobacco and their health. Most have seen the
wide array of television commercials condemning the use of tobacco and have
formed some sort of opinion on the methods used to prevent its use. Tobacco
companies have been using the media as an instrument to sell their product, but in
sly and corrupt ways. Anti-tobacco organizations have been trying relentlessly to

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change their vantage point on getting the message out to stop people from using
these products.
Are tobacco companies playing fair when it comes to ethics and advertising? Do
the majority of people even want the business of tobacco to be eliminated
completely? These are tough issues that become even tougher when the subject of
money is involved. Can we afford to rid ourselves of tobacco? Tobacco marketing
ethics for both pro and anti-tobacco ad campaigns are flawed. By creating a bias
towards the people that they target, tobacco companies in effect still control
that part of the market that is pertinent to their operations. Anti-tobacco ad
campaigns are just the opposite. They concentrate their ads, whether intentional or
otherwise, on the other portion of the public, most of which do not use tobacco
products.

Part c
(summary) :- The government is determined to implement a policy intended to
give 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 also mentioned 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's proposed 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

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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
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,
Dongaria Kondh and Kutia, Kondh are both Scheduled Tribes. The constitution
requires that the government respect s and upholds the land rights of the scheduled
tribes. The Niyamgiri Hills is the role habitat of the two tribe And the least 20% of
the Dongaria Kondh 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 started appearing 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 naxal operations. 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 without
causing 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 on
environmental 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

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the density deta of forest areas and put it on its website. Prime Minister Manmohan
singh has directed the petroleum ministry to decide whithin this month 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’s capacity has increased from 1
million tons per year to 6million, tones without requisite clearances.All issues that
have been raised by the saxena report Looked into and settled by expert agencies
appointed by the supreme court. Country’s energy security is paramount and we
will Not compromise on that said minister of state for oil Natural gas, Jitin Prasad.
Three key blocks of chain India in Rajasthan, Raava and 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 necessary for 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
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Indian subsidiary cairn India to London listed mining major Vedanta resources
which is no stronger to India.Vedanta resources will come under further 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 ministry
has 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 affiliated In 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’s Kalahandi)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 Niyamgiri hills.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
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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
Energy plc, 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 the
mandatory 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-vedanta deal.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 Aggarwal Muradabad 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
Dongria Kondh tribe.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 church says it
expects a certain level of respect for human rights and local communities. the
church’s unprecedented and very welcome decision 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

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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
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.“Prime 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 ‘loot’ .Mr Mohanty 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 ‘Loot’ 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
permission for 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

15
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 fits in with the government ‘s ‘look 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 ,
which has invested about rs 45000 crore in its alumina and power refinery, had
committed 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 been
completed ,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 Posco Pratirodh Sangam Samiti undertaking a long march between
pradeep and puri cost to protest the 30000 villagers .POSCO India managing
director GW Sung said in a statement ‘we 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 significantly

to the The mining sector underwent modernization following the independence of
India although minerals have been mined in the region since antiquity. The country
exports a variety of minerals—found in abundance its geographically diverse

16
regions—while it imports others not found in sufficient quantities within its
geographical boundaries. Several techniques for mining are employed in the
country and a significant part of the country lies unexplored for mineral wealth.

Overview

The tradition of mining in the region is ancient and underwent modernization

alongside the rest of the world as India gained independence in 1947. The and the
1993 National Mining Policy further helped the growth of the mining sector.
India's minerals range from both types. The metallic minerals comprise minerals
while 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 one
million persons on a daily average basis.'Both and operations are carried out and
is undertaken for extracting liquid or gaseous fuels. The country produces and
works with roughly 100 minerals, which are an important source for earning
foreign exchange as well as satisfying domestic needs. India also exports etc.

Unless controlled by other departments of the mineral resources of the country are
surveyed by the Indian Ministry of Mines, which also regulates the manner in
which 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 various
activities 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 in was known and
exploited by the inhabitants of the by the 3rd millennium BCE. P. Biagi and M.
Cremaschi of 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
17
very narrow bladelet detachments.'Between 1995 and 1998,dating of Zyzyphus cf.
nummularia found in the quarries has yielded evidence that the activity continued
into 1870-1800 BCE. Minerals subsequently found mention in. George Robert
Rapp—on the subject of minerals mentioned in India's literature—holds that:

Geographical distribution

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

Mineral
Location Minerals found
Belt

iron ore, manganese, bauxite, copper, etc. Khullar

calls this region the mineral heartland of India and
North Chota nagpur platue and the further cites studies to state that: 'this region
Eastern plateau covering the states possesses India's 100 percent Kyanite, 93 percent
Peninsular of and Jharkhand orissa & iron ore, 84 percent coal, 70 percent chromite, 70
Belt W.B.. percent mica, 50 percent 45 percent 45 percent 20
percent and 10 percent manganese.'

Manganese, bauxite, limestone, coal, mica, etc. exist

Central Chattishgarh , in large quantities and the net extent of the minerals
Belt Andrhyapradesh,M.P. of the region is yet to be assessed. This is the second
largest belt of minerals in the country.

Southern Karnataka plateau and

Ferrous minerals and bauxite. Low diversity.
Belt Tamilnadu

South
Western Karnataka .,GOA Iron ore,
Belt

18
North
Western Rajasthan &Gujarat. Non-ferrous minerals, mica,
Belt

Production

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

Quant
Mineral Unit Mineral type
ity

Coal 403 Million Fuel

Lignite 29 Million tones Fuel

Natural Gas 31,007 Million Fuel

Crude Petroleum 32 Million tones Fuel

19
Bauxite 11,278 Thousand tones Metallic Mineral

Copper 125 Thousand tones Metallic Mineral

Gold 3,048 Thousand Metallic Mineral

140,13 Thousand
Iron Ore Metallic Mineral
1 tonnes

LEAD 93 Thousand tones Metallic Mineral

Manganese Ore 1,963 Thousand tones Metallic Mineral

Zinc 862 Thousand tones Metallic Mineral

Non Metallic
Diamond 60,155 Carattes
Mineral

Non Metallic
Gypsum 3,651 Thousand tones
Mineral

Non Metallic
Limestone 170 Thousand tones
Mineral

Non Metallic
Phosporite 1,383 Thousand tones
Mineral

20
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 &
103,003 tones
plaster

Iron ore 83,165 tones

Lead 81,157 tones

Limestone 343,814 tones

Manganese ore 317,787 tones

Marble 234,455 tones

21
Mica 97,842 tones

Natural gas 29,523 tones

Sulphur 2,465 tones

Zinc 180,704 tones

DATA OF OPERATING MINES:

No of operating Mines:

Sector 2007-08 2008-09 2009-10

All minerals 2942 2964 2729
Coal(incl. lignite) 570 570 570
Metallic 691 691 636
minerals
Non metallic 1681 1703 1523
minerals
All minerals- Excluding atomic minerals, 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%.

22
Issues with Mining's

One of the most challenging issues in India's mining sector is the lack of
assessment of India's natural resources. A number of areas remain unexplored and
the mineral resources in these areas are yet to be assessed. The distribution of
minerals in the areas known is uneven and varies drastically from one region to
another. India is also looking to follow the example set by Japan and to recycle and
use for ferrous industry.

Under the a committee of experts formed in 1894 formulated regulations for

mining safety and ensured regulated mining in India. The committee also passed
the 1st Mines act of 1901 which led to a substantial drop in mining related
accidents. The accidents in mining are caused both by man-made and natural
phenomenon, for example explosions and flooding. The main causes for incidents
resulting in serious injury or death are roof fall, vehicular accidents,
falling/slipping and hauling related incidents.

In recent decades, mining industry has been facing issues of large scale
displacements, resistance of locals, environmental issues like pollution, corruption,
deforestation, dangers to animal habitats.

PART – d

Ethics of Vedanta with PURE ETHICS (BHAGVAT GITA)

The Dongria Kondh are one of the most isolated tribes in India. They live among
the Niyamgiri Hills in Orissa, in the east of the country. They call themselves
Jharnia,meaning “protectors of streams”, because they safeguard their sacred
mountain, Niyam
Dongar, and the rivers that rise within its forests. The culture, identity and
livelihood of the Dongria Kondh are all dependent on the Niyamgiri Hills and they
cannot live anywhere else. Vedanta takes a very different view. Far from posing a
threat to the Dongria, it claimsthat its plans offer them an unrivalled opportunity:

23
“As enlightened and privileged human beings we should try not to keep the tribal
and other backward people in a primitive, uncared-and-unprovided-for
socioeconomic environment. We have a strong obligation to provide them with
education, health care and sustainable livelihood opportunities so that they may
move forward with the rest of the world in an all inclusive growth path.” Vedanta
has failed to consider the “potential implications” of its activities for the Dongria
Kondh because it refuses to accept that there are any. This view may be a
convenient one but is unsupported by evidence. The NCP should urge the company
even at this late stage
to abide by the Akwe: Koh Guidelines14 and commission an indigenous rights
impact assessment. Only by this means will it be possible to establish what the
mine will mean for the Dongria, for their culture and for their religious practices.
The NCP should agree with Vedanta how best to ensure that the Dongria are able
to participate in the assessment, and are kept abreast of its findings in a language
and a form that they can readily understand. This will allow the Dongria to weigh
any benefits associated with the mine against its disadvantages, as they are quite
unable to do at present. In the meantime Vedanta should agree to stop work on the
mine and its infrastructure. It should also agree that if at the end of the consultative
process it has not won the broad support of the Dongria Kondh, the company will
respect their decision and look for its
bauxite elsewhere.
This approach accords not only with well-established principles of international
law but with commercial good sense. Mining companies which ride roughshod
over local rightsrun the risk of significant delays and reputational damage, as well
as hugely increased
security costs and the prospect of future litigation. This is why Anglo-American,
for instance, has committed itself to “work with indigenous people around the
world on the
basis of consent, recognizing their historical disadvantages and specific cultural
norms.” As a result the company has postponed plans to drill in the vicinity of
Suggi Lake in Canada until it has secured the consent of the Indian community.
Rio Tinto has agreed not to mine at Jabiluka in the Northern Territory, Australia,
for the same reason, and has accepted that the need to obtain FPIC “may
sometimes result in our not exploring land or
developing operations, even if legally permitted to do so. The bankers who advised
Vedanta on its stock exchange listing, JP Morgan Chase, have
made a similar commitment. They will finance projects only “if land claims of the
indigenous community have been appropriately addressed and the community has
expressed its support for the project after free, prior and informed consultation.

24
From the fuzzy logic of Buddha‘s 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 business
transactions, 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,
‘Business 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 and
intellectual 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

25
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 increasingly
need 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: ‘to 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 3rd century BC and the
4th 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.

26
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 – (Vasudaiva Kutumbam)

Vasudaiva kutumbam, 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 ‘borderless 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 Vasudaiva
Kutumbam- 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 is
governed 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: ‘Do unto
others what you would have them do unto you’.

27
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 ‘process orientation’ that is followed by the Japanese and most of
the Southeast Asian countries. The only difference between the Japanese and the
Western management practices is that between ‘process orientation’ and ‘result
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.

28
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 practice
virtue and selflessness, shall be the role model for tomorrow’s leadership- the
virtues leader. The virtues leader follows ‘non-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 ‘universal 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 ‘conditioning’ 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.

29
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 are
invisible; 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.

30
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 like
Tata 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
exploitation this 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 (MMRDA) 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 MMRD 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 a
clear distincentive for the mining ferm for developing the mining area and
maximize the residual sale value? similiarly,liabilities for compensation aqnd
rehabilliation 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.

31
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 ‘acceptable’ 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- the
enlightened 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

32
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 “takes human rights, the environment and its
relationship with the communities in which it operates very seriously, and
considers them part of its licence to operate.”46 If this is true, the company should
now recognise that its policy has come badly adrift in Niyamgiri, and that it must
focus its efforts first on seeking an independent assessment of the true impact of its
plans on the Dongria Kondh, and second on a realistic programme to secure if it
can their free, prior and informedconsent.. If the NCP cannot persuade Vedanta to
do this, 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.

33
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
34