Managing organizational ethics becomes pervasive within

Organization’s. Sector - Telecommunication

Business Ethics, Governance and Social Responsibility

REPORT SUBMITTED TO:

Dr. Mamta Hegde
PGDBM, MBA, Ph.D
Assistant Professor - OB & HRM 
SDMIMD Mysuru

REPORT SUBMITTED BY:

Group-8 Section ‘A’- PGDM 22-24
ALWYN SABU- 22562
DRUVA N- 22573
MANJUNATH C - 22584
RADHIKA CHOUHAN - 22594
SRISHTI K – 22604
YASHAS M D - 22614

Date of Submission: 5th December 2022

 ACKNOWLEDGMENT

We would like to thank our Professor Dr. Mamta Hegde who gave us this opportunity to
work on this project. We got to learn a lot from this project various Ethical practices that are
being followed and some of the Unethical situations that occurred or happening in the
Telecommunication industry.

We also thank our Professor Dr. Mamta Hegde Madam for teaching this topic in class while
we were very much in need to understand the topic and follow through with the process of
creating the report.
 EXECUTIVE SUMMARY

The telecommunication industries within the sector of information and

communication technology are made up of all telecommunications/telephone
companies and internet service providers and plays a crucial role in the evolution of
mobile communications and the information society. They play a vital role in bridging
communication among people around world exchanging information, emotions,
feelings, thoughts, and ideas. So, communication through has become an essential part
of our daily life.
Telecom operators are more concerned about earning profits rather than considering
customers, because communication is a need to everyone, therefore telecom operators
increase price because they know customers will pay.
Through this report we come across many unethical practices done by many telecom
companies which we were not aware of. Also mentioning about the corporate ethics of
telecom industries and what the directors, organisations and employees can follow to
maintain ethics in the organisation.
This report helps us in understanding the ethical work culture of telecom companies.
Good work environment helps in better performance thereby increasing the efficiency
of the employees for better profits.
Table of Contents
INTRODUCTION..................................................................................................................1
Brief about Telecommunication Industry............................................................................1
Key Telecom Industry Segments.........................................................................................1
Indian Telecom Industry at a glance in 2022.......................................................................1
Key Drivers of Digital Native...............................................................................................1
Corporate Governance:......................................................................................................2
Qualifications that a ruling body should possess to adhere to Ethics in any Organization:......2
Corporate Ethics:................................................................................................................2
Ethical problems in telecommunication:.............................................................................2
Essentials of any Director and Employees to maintain Ethics in an organisation:................3
AIRTEL................................................................................................................................4
Ethical Issues in Airtel....................................................................................................................4
Religious Bigotry..........................................................................................................................4
Discrimination against Minority Shareholders.........................................................................4
Misleading Advertisement..........................................................................................................4
ASCI on other Telecom operators..................................................................................................5
As per Consumer Protection Act,2019 (Compensation & Penalties as per bill,2019)............5
Airtel and VI are accused by Reliance Jio of poaching its consumers (An ethical dilemma) 5
Complaint By Reliance Jio..........................................................................................................6
Response from Airtel and Vi.......................................................................................................6
How company encourages good ethics at work?...........................................................................6
At workplace................................................................................................................................6
Dealing with third party..............................................................................................................6
Law and regulations........................................................................................................................7
Corporate social responsibility.......................................................................................................7
BSNL...................................................................................................................................8
BSNL's ethical practises..................................................................................................................8
1. Commitment towards the nation................................................................................................8
2. Transparency in reaching to the customers...............................................................................8
3. Rationalized services...................................................................................................................8
Unethical Practises observed in BSNL...........................................................................................9
1. Lack of ethical values in BSNL hierarchy.................................................................................9
2. Followed biased practises during tenders..................................................................................9
3. Unethical billing practices...........................................................................................................9
Some of the CSR initiatives taken up by the BSNL......................................................................9
MTNL...............................................................................................................................10
 Some of the unethical practises of MTNL....................................................................................10
Reliance JIO......................................................................................................................12
Ethical practices in Reliance Jio...................................................................................................12
Customer Value:........................................................................................................................12
Ownership Mindset:..................................................................................................................12
Respect:......................................................................................................................................12
Integrity:.....................................................................................................................................13
One Team:..................................................................................................................................13
Excellence:..................................................................................................................................13
Unethical issues faced by Reliance Jio..............................................................................14
'Boycott Jio': Reliance accuses Airtel, VI of 'unethical campaign'; charges 'baseless', say
rivals................................................................................................................................14
TATA DOCOMO................................................................................................................15
DOCOMO – Do Communication Over the Mobile Network.....................................................15
Ethical Issues in Tata Docomo......................................................................................................15
Reason for decline..........................................................................................................................15
Actions taken by DOCOMO.........................................................................................................15
RBI’s Stand in Tata’s case............................................................................................................15
Resolution to the issue...................................................................................................................16
Internal Environment Analysis of TATA DOCOMO.................................................................16
Brand Image of Tata and Docomo...............................................................................................16
Problems with TATA DOCOMO.................................................................................................16
Employee Mortality in Organization...........................................................................................16
TATA DOCOMO'S Management System...................................................................................16
TATA DOCOMO'S Organizational Culture..............................................................................16
Environmental External Analysis................................................................................................17
Social...........................................................................................................................................17
Technology.................................................................................................................................17
Environment..............................................................................................................................17
Cyrus Mistry – Whistle Blower at TATA DOCOMO.................................................................18
What happened to Tata Docomo at the End................................................................................18
Conclusion........................................................................................................................19
References.......................................................................................................................20
INTRODUCTION

Brief about Telecommunication Industry

The telecommunication industry is made up of businesses that enable global communication,
whether it be via the phone or through the Internet, over airwaves or cables, via wires or
wirelessly. These businesses built the network that enables the transmission of data in the
form of text, speech, audio, or video around the globe. Internet service providers, satellite
companies, cable operators, and telephone operators are the biggest businesses in the
industry.
The sector has been caught up in fast liberalization and innovation since the early 2000s.
Government monopolies are currently being privatized in many nations throughout the world
and are up against a slew of new rivals. The rise of mobile services is outpacing that of fixed-
line services, and the Internet is beginning to supplant voice as the mainstay of commerce,
upending traditional marketplaces.

Key Telecom Industry Segments

 Wireless Communication
 Communication Equipment’s
 Processing System
 Domestic Telecom Services
 Foreign Telecom Services
 Diversified Communication Services.

Indian Telecom Industry at a glance in 2022

In India, the development of the telecom infrastructure is regarded as essential to achieving
the country's socioeconomic goals. With 1.17 billion users (wireless + wireline subscribers)
as of August 2022, India has the second-largest telecom sector worldwide. Affordable prices,
greater accessibility, the introduction of Mobile Number Portability (MNP), expanding 3G
and 4G coverage, changing subscriber consumption patterns, government initiatives to
increase India's domestic telecom manufacturing capacity, and a supportive regulatory
environment have all contributed to the industry's exponential growth over the past few years.

Key Drivers of Digital Native

Digitize or perish is the stark warning that telecom companies must heed. Not using
technology or retraining staff members is the biggest barrier. It has been difficult for telecom
providers to provide new, unique services while preserving profitability. Perhaps the most
challenging and underappreciated step in any digital transformation process is changing an
organization's culture. We cannot anticipate any significant change in the real world unless
the culture shifts.
Organizations that are "digital natives" run substantially differently from traditional players.
They frequently have an entrepreneurial mindset. They are more concerned with the results

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than the process. The telecom industry provides important services and is more than just a
source of income.

Corporate Governance:
Effective management and monitoring of telecom are made possible by strong corporate
governance, and it also ensures that we fulfil our obligations to our stakeholders, which
include investors, customers, workers, and the community. The Board of Directors ought to
pass resolutions outlining their fiduciary obligations and anticipated standards of behaviour.
Additionally, the Board of Directors should create corporate governance policies that are
consistent with its present governance procedures and its dedication to ensuring its
effectiveness. When the time comes for the Board to hold special elections to replace
vacancies or create new directorships, the Nominating and Governance Committee of the
Board should select eligible candidates for the Board and nominate them.

Qualifications that a ruling body should possess to adhere to Ethics in any

Organization:
i. The greatest levels of morality and integrity in both personal and professional life.
ii. Sound business judgment.
iii. Have enough time to dedicate to their duties as a board member.
iv. Necessary education, training, and expertise to comprehend our company.
v. Ability to demonstrate independence and financial literacy in accordance with
SEBI, NASDAQ, and other standards.

Corporate Ethics:
Telecom should establish a complaint process so that staff members can voice complaints
regarding accounting, auditing, or similar ethical problems. A Code of Ethics for Directors
and a more thorough Code of Conduct for Employees should be adopted by Telecom. The
Compliance Officer should be the Executive Vice President, General Counsel, and
Regulatory Policy. The examination and resolution of issues presented to the Compliance
Office should be under the direction of an Ethics and Integrity Council made up of the
Compliance Officer and other senior executives. To encourage moral behaviour and prevent
wrongdoing, the corporation should adopt a code of ethics for directors and staff. Any
individual with knowledge of a breach of the Code by a director or employee should
immediately fax the Company's Integrity & Ethics Council to alert them to the situation.

Ethical problems in telecommunication:

Privacy, Security, and Resilience: As mobile devices turn into personal data centres, end
users face growing privacy and security risks as hazards from several contexts, such as SMS,
the cloud, Web 2.0, and mobile apps, congregate to pose a common threat. Customers,
however, hold operators liable for risks or assaults coming from outside parties and
providers, including rogue applications and mobile viruses. At the same time, privacy issues
limit the development of new services. For instance, location-sensitive data may enable
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revenue models based on advertising but may also cause privacy issues for users. Operators
should be aware that national security concerns are becoming more important and that ideas
of digital rights are an emotional problem for consumers to control the dangers that emerge.
For various clients and stakeholders, including consumers, businesses, and the government,
security concerns can take on diverse forms and sizes. At the same time, evolving concepts of
security and privacy are giving the industry new obligations. Operators must collaborate
closely with governments to explicitly clarify their obligations for content and data, such as
anti-terrorism measures and material for minors, to respond.

Essentials of any Director and Employees to maintain Ethics in an

organisation:

i. Act honestly and ethically on the performance of their duties at the Company.
ii. Avoid conflicts of interest, whether real or imagined, between your personal and
professional connections, your other professional or corporate interests, and your
duties and obligations to the company.
iii. Obey all laws, ordinances, rules, and regulations of the federal, state, local, and
other private and public regulatory agencies that have an impact on how the
company conducts business and how the company reports its financial
information.
iv. Without distorting material facts or enabling independent judgement to be
compromised, behave in good faith, responsibly, with due care, competence, and
diligence.
v. Maintain the privacy of information obtained during your employment unless you
are required by law or are permitted to do so.
vi. Exchange information and uphold abilities necessary for performing the
individual's job responsibilities inside the Company.
vii. Actively encourage moral conduct among peers, work teams, and co-workers in
the workplace and community.
viii. Bring any information relating to the Audit Committee's work as soon as
possible.
 There are serious weaknesses in internal controls that might have an
adverse effect on the organization's ability to collect, process, summarise,
and report financial data.
or
 Any fraud, whether it is material, that involves management or other staff
members who play a big part in the company's internal controls,
disclosures, or financial reporting.
ix. Accept responsibility for following this Code on a personal level.
Corporate governance and business ethics discuss how ethical and corporate governance
theories are applied in diverse business contexts. The successful operation of a concern
depends on the effective implementation of these theories. It relies on several factors related
to managerial tasks as well. According to contemporary marketing theories, consumer
happiness ought to be the goal. Customers therefore have the key to an organization's success
in their hands. They are ignorant of the organization's immoral tactics. A good company
should understand business ethics, which are essential for economic development. Maximum
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use of the human, material, and financial resources is said to exist in an organisation with
flawless corporate governance. The concern can only win the public's goodwill by
successfully implementing corporate ethics.

4
AIRTEL
Ethical Issues in Airtel
Religious Bigotry
The Company faced criticism for switching executives based on the customer’s
religious preference.
In a incident where the customer blatantly asked for a Hindu representative to resolve
her issue and her request was entertained by switching the executives from Muslim to
Hindu, this appears Unconvincing as the Company has created the impression that it
only cares about income and doesn't care about people's feelings by caving in to an
offensive discriminating request.

Leading telecommunications providers like Airtel should serve as an example by

forbidding any form of discrimination based on race, caste, or religion. Employees at
the company should be made aware of the different forms of discrimination that
require opposition.
It should also be aware that an honest apology always works and is far preferable to a
fake explanation.

Discrimination against Minority Shareholders

Bharti telecom had offered a discriminatory resolution plan to its minority
shareholders at the oppressive consideration price of rs. 163.25.
On behalf of the Bharti Telecom Ltd.'s minority shareholders, the whistle-blower has
petitioned the Security and Exchange Board of India (Sebi) to withdraw and alter the
capital reduction proposal that aims to provide an exit route for its 1.1% owners.

Gupta stated that these shareholders consider their BTL shares to be a "crown
treasure" and are unwilling to sell them at the "oppressive consideration" price of Rs
163.25, confirming that these shareholders have rejected Bharti Group's
discriminatory resolution proposal.
He referred to the company's special resolution plan as a coercive, abusive, unlawful,
and discriminating act of exploitation.
Misleading Advertisement
Airtel’s 4G Advertisement was declared Misleading by the Advertising Standard
Council of India after an unnamed person filed complain against them, as it was
projecting their 4G services as the best in the country without any evidence or proof.
Airtel has been announcing two claims in its print and video commercials on a regular
basis: "Airtel 4G is the fastest network ever" and "If your network is faster, we will
pay your mobile bills for life." This is unethical according to ASCI regulations and
advertising ethics.
First, there has never been an official assessment performed to verify the statement
that Airtel is the fastest network, and there is no method for a consumer to verify this
claim.

5
 Additionally, their claim that they will cover all future mobile bill payments seems to
be a made-up marketing gimmick to attract more attention. A customer is unaware of
how to verify these assertions and get in touch with Airtel for free bill payments.
Thus, ASCI made the statement to withdraw or modify the advertisement
appropriately and asked the viewers to bring to their notice if they continue to see the
misleading advertisement.

ASCI on other Telecom operators

As it relates to exaggerated claims and promises, ASCI has not been shy in slapping the
whip on telecom companies in the past.
IIN (Idea Internet Network) commercials from Idea Cellular were deemed deceptive by
ASCI in the past year. These ads essentially demonstrated how the Internet can improve
rural residents' quality of life. They used biased imagery in one particular video
advertisement to convey the idea that all women in Haryana are uneducated and unequal.
Similar to Airtel, ASCI chastised Vodafone for creating misleading commercials with the
text "Share images 43% faster" and "The fastest 3G network," and directed them to
remove them.
As per Consumer Protection Act,2019 (Compensation & Penalties as per bill,2019)
 Penalties for deceptive advertising
A fine of up to Rs 10 lakhs and a two-year prison sentence are possible penalties
for breaking the CCPA. The maximum fine is Rs. 50 lakhs, and the maximum
prison term is 5 years.
 Right to lodge a complaint from anywhere
According to this new regulation, consumers may submit a complaint from any
location, including their home, place of business, or anywhere.
ASCI Says - Don't be hesitant to complain directly to ASCI if you come across
advertising like this that is dishonest, discriminatory, or that supports a particular
perspective without presenting any evidence.
Airtel and VI are accused by Reliance Jio of poaching its consumers (An ethical
dilemma)
Telecom companies were at odds with one
another on the effects of the farmers'
protest. Jio has accused Airtel and VIL in a
letter to the Telecom Regulatory Authority
of India of pursuing an unethical campaign
to promote mobile number portability in
order to profit from the ongoing farmer
protest. Jio complained in a letter to the
telecom oversight authority that "they are
instigating the public by making ridiculous
statements that moving Jio mobile numbers
to their networks will be an expression of
support to farmers' demonstrations." Jio's
allegations have been deemed false by Airtel and VIL.

6
Complaint By Reliance Jio
 Bharti Airtel and Vodafone Idea are attempting to profit from the farmers'
demonstrations, according to Reliance Jio.
 Due to the protests in the country's north, both competing networks have produced
mobile number portability (MNP) commercials.
 False information about Reliance benefiting from the new farm legislation is
being disseminated directly or indirectly by Bharti Airtel and Vodafone Idea
employees, agents, and retailers.
 Reliance Jio users are leaving in droves, citing their support for farmers as their
justification.
 Both Bharti Airtel and Vodafone Idea should be penalised by TRAI for
undertaking deceptive advertising efforts.
Response from Airtel and Vi
 Airtel and Vi responded by saying that despite fierce market competition, they
handled their rivals and business partners with respect.
 Airtel has always operated its business with integrity and openness, according to
the statement.
 Airtel pleaded with TRAI to treat Reliance Jio's complaint "with the disdain that it
deserves."
 According to Vodafone Idea (Vi), they operated their company ethically.
 The business denied Reliance Jio's accusations by claiming that the present
complaint was an effort to damage their names.

How company encourages good ethics at work?

At workplace
 Behaviour and conduct
 Fair practises and avoiding conflicts of interest
 Harassment-free and cordial behaviour
Dealing with third party
A. Government institutions- The company operates in a highly regulated industry, and
its employees interact often with governmental bodies like regulators, tax collectors,
and local authorities and such are necessary to develop relationships based on
openness and justice at all levels. Thus, their code of conduct forbids hiding,
changing, or destroying any information that the investigating authorities may request.

B. Affiliations to politics and religion- Every employee's right to hold beliefs in politics
and religion that are legal and permissible is respected by the organisation. All
political and religious matters, however, are personal in nature and cannot be
discussed during working hours, on company property, or with co-workers.

C. Customers and Business Partners - The business is dedicated to provide

consistently excellent levels of service to its clients. It adheres to the belief that the
customer is the cause for our existence and accords each and every one of them the
utmost respect and consideration.

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 D. Media and communication
 Only authorised spokespersons are permitted to communicate any information
about the company to the outside world. No other person is permitted to
communicate with, share information with, or express opinions on the
company with third parties.
 Only with the prior approval of a business partner may any comments,
opinions, or information regarding that partner be made.

Law and regulations

 Competition and legal observance
The business adheres to the highest standards of honest and ethical corporate conduct
and market-driven competition. The business realises that, in addition to fierce
competition, the nature of the industry necessitates collaboration—but only within the
bounds of the law.
 It is mandatory and unavoidable to abide by all applicable laws and regulations. Every
employee must be completely informed of all applicable laws as well as follow them
in letter and spirit because the organisation has a zero-tolerance policy for breaking
rules and regulations.
 Insider trading- Insider trading is illegal, and those who engage in it risk being
prosecuted by the Securities Exchange Board of India and having their employment
terminated by their employer. If you have any questions about your eligibility to trade
in the firm's shares at a specific moment, please consult the company secretary.

Corporate social responsibility

The Company says - We owe it to the communities where we do business to do everything in
our power to raise everyone's standard of living.
The corporation is dedicated to taking voluntary and affirmative action to give sound
education to the economically underprivileged groups, especially female children, so that the
young people have access to high-quality education and can find employment. To accomplish
this, the organisation established the Bharti Foundation.
The Company supports workers who choose to volunteer their time with the Bharti
Foundation by granting one day of paid time off for such activities.
The corporation now has a policy that provides a matching contribution to the Foundation
and any authorised non- profit organisation, and donations to the Foundation are also
encouraged.

8
BSNL
BSNL's ethical practises
1. Commitment towards the nation
BSNL has always been at the lead during natural disasters. Only the
BSNL network was operational in Visakhapatnam during the Hudhud cyclone,2014. Unlike
private TSPs, BSNL made sure that Diesel Generator sets were operating continuously for
seven days a week, offering uninterrupted service (Telecom Service Providers). Through an
ICR (Intra circle Roaming) arrangement, it permitted users of other TSPs to access its
network. The State government and customers praised BSNL for its excellent services,
similar to how it stepped up and helped consumers after the floods in Chennai and the
cyclone in Orissa. During natural calamities, calls were provided at no cost. These are some
of the most moral actions the firm has taken to benefit the nation.

2. Transparency in reaching to the customers

The hallmark of BSNL has been metering and billing with transparency, which has been
praised by the industry regulator, TRAI. Along with LIC in the insurance industry, BSNL
was named the most trustworthy brand in the telecom industry. The rates of BSNL are really
affordable. While doing so, it avoids using predatory pricing. It conducts business in a moral
and just manner. Due to BSNL's involvement in the mobile market, the "missed call" regime
gave way to the "free call" regime. In terms of national security, BSNL's position in the
telecom sector is crucial. Never again will anyone forget how one TSP misrepresented the
CLI of overseas calls received as local calls in order to reduce IUC (interconnect Usage
Charges) and put their customers' safety at risk. For its telecom requirements, the armed
forces rely on BSNL/MTNL.

3. Rationalized services
As a result of fierce competency, BSNL had faced competition from private telecom service
providers, and has attempted to improve services and efficiency both in urban and rural
environments. It established ethical standards and norms in the telecom industry that lateral
entrants in the market should follow. With a huge boom, it launched mobile services with the
promotion of free incoming calls, branding India as a "free incoming" country. Due to BSNL,
the other private TSPs were compelled to offer free inbound service, which benefited the
customers and amply illustrated the need for a PSU and the effects of competition. With the
implementation of "One Nation, One Number" on June 15, 2015, it was the first operator to
eliminate roaming fees for incoming calls.

9
Unethical Practises observed in BSNL
1. Lack of ethical values in BSNL hierarchy
In 2006, Dayanidhi Maran, the then telecom minister started influencing the government
officials to provide illegal favour to his brother firm sun network. During his tenure, he mis-
utilised 323 telecom connections with BSNL which resulted in huge loss of around 1500
crore to BSNL and arrest of many top management officials who were involved in these
unethical practises. BSNL was the original Indian telecom firm to suggest bringing up wimax
services in India but unfortunately the telecom ministry did not allow this proposal of the
BSNL after the illegal activities and scams that happened.

2. Followed biased practises during tenders

BSNL invited bids in 2009 for 802.16e mobile WiMAX standard which was initiated to
provide its services in pan India 16 license service areas, but on August 4 th 2009, BSNL had
to cancel its original WiMAX tender because of allegations of non-transparency in the
bidding process. In this tender, allegations were made on some participating companies that
they had close contact with the government. These unethical business practices let to a sharp
fall of BSNL in the market share which made it so difficult for the company to even manage
its operational expenses. Similarly, 13 more tenders were cancelled between 2007 to 2010.
After the Dayanidhi Maran incident and the 2G scam, the government started digging for
corrupt practices, and several reputed companies were disqualified in the first round itself.
The CBI got into the case, and soon enough, BSNL was not allowed to procure equipment’s
and materials after the realization of involvement of top management officials of BSNL.

3. Unethical billing practices

Some of the unethical moves by BSNL included an incident in 2014, where BSNL did not
intimate most of the consumers over the plan change from unlimited night data plans to
reduced rate at night hours, which led Many customers to worry about bill shocks the next
month. BSNL should had intimated the customers as an ethical practise through proper means
like email, SMS or phone call and briefed about the impact and suggested alternatives. Not
everyone can compare plans easily, even experts need time to compare and opt for the best
plans.

Some of the CSR initiatives taken up by the BSNL

 Quality Service at Inexpensive Prices - Since it is crucial for the attainment of the
state's social and economic objectives, BSNL provides dependable telecom services
for the residents of the most remote areas of the country at an affordable price. As part
of its social obligation, BSNL is the only telecom company to provide rural telephone.

10
  Provided Services in Tribal Area – BSNL linked the isolated Miyar Valley in
Himachal Pradesh to the mobile phone network. In the chilly desert region of
Himachal Pradesh's Lahaul & Spiti district, a tower was built to provide mobile
communications. Over 1,000 individuals living in six communities throughout the
valley benefitted from the phone service.
 With the backing of the government, BSNL brought up universal broadband
connections across Gram Panchayats, upper- and secondary-level educational
institutions, and public healthcare facilities. In comparison to subscribers in
metropolitan areas, BSNL is providing special prices for subscribers in rural areas that
include cheaper rental and higher free calls.
 Paramilitary Forces Special Tariff Plans – BSNL introduced unique rate options for
paramilitary forces. Under this offer, Jawans can talk to their families from anywhere
in the country for 20 minutes of free talk time to two BSNL numbers every day.
 Assistance in the event of natural disasters - BSNL is constantly aware of its
obligations as a corporate citizen. BSNL acted quickly to help the devastated
populations in the coastline areas after a natural calamity, the Tsunami waves, hit the
Indian coastlines. The coastal districts most severely affected by the tsunami which
had poor communication systems in Tamil Nadu, Kerala, and the Andaman &
Nicobar Islands were quickly restored. It is also clear that in the past, telephone
connection was quickly restored in flood-affected parts of Gujarat and Maharashtra,
and 2,207 lakhs of rupees were contributed to the Prime Minister's Relief Fund by
BSNL and its workers.

MTNL
MTNL is a Public Sector Undertaking that provides customers with world-class
telecommunications services at cost-effective rates. MTNL is limited to Mumbai and Delhi
and competes with Private TSPs for basic as well as cellular services. Private cellular
operators have accused Mahanagar Telephone Nigam Ltd (MTNL) of wanting to engage in
anti-competitive business activities while expanding out its cellular
network ever since MTNL announced its plans to offer cellular services
in Delhi and Mumbai in 2013.

Some of the unethical practises of MTNL

MTNL was reported of following unfair trade practises by MRTPC -
The Monopolies and Restrictive Trade Practices Commission had fined state-run telecom
firm MTNL for poor service and harassing a customer. Hari Gopal Garg, who moved from
11
Delhi to Faridabad in June 1998, had sought a 'surrender certificate' from MTNL and had
returned his telephone set to MTNL as per the mandatory requirement. MRTPC observed
that, despite Garg's reminders to MTNL officials, no action was taken for more than a year
after MTNL issued orders to shift the telephone connection on July 15, 1998. Furthermore,
even after the service was disconnected and the handset was returned, the company continued
to send him phone bills. Despite the fact that Garg submitted the bills, he appealed to the
MRTPC, requesting it to direct MTNL to return the money. MRTPC stated in its decision
that the respondent's (MTNL) action all along appears to be derogatory and is a deficiency in
service, from that which is expected of a public undertaking like MTNL. The Commission
then ordered MTNL to refund Garg's rental charges along with a 9% interest on it.

Some of the unethical practises of MTNL involved in customer services are also reported
frequently. An example of it is an incident reported by one of the subscriber Amish Gupta in
November 2020, Amish Gupta's landline phone stopped working a year ago, and he ignored
it, using his cell phone instead. In May, His landline's broadband connection started
flickering. so, he complained to his telecom provider. He then decided to surrender his
MTNL connection altogether. He had even called the telecom operator 10 to 15 times to get
his connection fixed, but his call was never received. He also claimed that the majority of the
MTNL office in Wadala was unoccupied when he arrived there later. They didn't have
enough workers to complete the work, and he was simply being moved from desk to desk,
which highlights their unethical customer services. Without a reliable internet connection,
working from home in the midst of the pandemic was impossible, and in July, a disgruntled
Gupta made his decision to completely give up his MTNL connection. According to him, the
surrender procedure went on for more than two months.

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Reliance JIO
Ethical practices in Reliance Jio
At Reliance Jio, the concept of ethics is consistent with our values and
behaviours. It is a straightforward process that entails deciding what is
right or wrong and then acting in accordance with those values. At
Reliance, ethics is all about values and the action that goes along with them. It involves
creating values and making sure that company and employee behaviour exemplifies those
ideals.
At Reliance, we think that any type of business behaviour can only be considered ethical if it
is based on the fundamental principles of customer value, ownership mindset, respect,
integrity, unity of the team, and excellence. Reliance has always operated under the tenets of
strong commitment to these values.
Customer Value: We believe the customer is the reason for our existence and the only
guarantee to our future. Everything that we do must delight our customer, each time and
always.
Anticipated Outcomes:
1. We will continually show that our customers come first and that we delight them.
2. We always take steps to ensure that Reliance is our clients' first choice.
3. To continually enhance our goods, services, and the customer experience, they will
actively listen to client feedback.
4. We'll take proactive measures and go above and above to continuously cultivate and
expand all of our consumer relationships.
5. We will treat our internal consumers equally in order to better satisfy our end users.
Ownership Mindset: The company's success and reputation, in our opinion, are crucial. A
mindset of ownership is essential to our survival. It inspires people and gives them a feeling
of direction. Accountability and success are made possible. It confirms our steadfast
dedication to the highest levels of environmental protection and safety.
Anticipated Outcomes:
1. Keeping the corporate mission at the forefront of our priorities and work alignment.
2. We will "play to win" and work with a sense of ownership and personal stake.
3. We'll always be flexible, predict what will matter to our stakeholders tomorrow, and act
quickly to make it happen.
4. We'll always uphold the strictest environmental and safety requirements.
5. We shall act in a way that upholds the highest corporate citizenship standards.
Respect: Without respect for all of our stakeholders, we think there could be no reliance jio.
We understand that different viewpoints could exist, but there must also be respect.
Anticipated Outcomes:
1. We should behave ourself with respect and dignity both as an individual and as a group.

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2. We will promote an open culture that encourages the expression of thoughts and ideas,
regardless of hierarchy, in order to protect the dignity and self-worth of one another.
3. We'll be open and honest in our communication while still respecting other people's
opinions.
4. We support inclusive practises in both our thinking and deeds, and we understand that
people have different points of view.
5. We'll try to create a welcoming, diversified workforce where everyone is respected and
treated with decency.
Integrity: Maintaining our reputation is essential because people assess us by the way we
behave. We are dedicated to acting honestly at all times. We make an effort to be open and
truthful with one another as well as with all of our stakeholders. Compliance with rules and
regulations is the first step. We behave in a manner that gain other people's trust and hold
oneself to the highest standards of ethical.
Anticipated Outcomes:
1. By consistently acting with integrity, being fair, and being humble, we will gain the
confidence and trust of others.
2. We uphold the Reliance Conduct Code and all pertinent laws because we believe in the
integrity of our words and deeds.
3. We think that creating a trusting environment with all of our stakeholders is important.
4. If we witness something that goes against the company's ideals, we will speak out.
5. We'll have the guts to speak up for what's right and bring issues to light quickly.
One Team: Regardless of an individual's strength, working together will allow us to do
more. We pledge to strengthening the team's capacity and prioritise the team's success over
our own. We have faith in one another to fulfil our commitments.
Anticipated Outcomes:
1. 'Team Reliance' always and everywhere comes before me
2. As "One Team, One Vision," we work together smoothly, asking for and aiding.
3. We accept responsibility for our team's and our own conduct.
4. We celebrate victories as a team and honour the contributions of other employees.
5. We take responsibility for the bigger picture and look outside of our own immediate tasks.
Excellence: We are dedicated to excellence in thought and deed. We think there is always
room for improvement in all we do and think. We always strive for excellence because we
frame all of our actions in the context of our higher purposes and goals.
Anticipated Outcomes:
1. We strive for excellence in all that we say, think, and do.
2. We won't produce, accept, or distribute anything of inferior quality.
3. Using the "Plan, Do, Check, and Act" method, we will accept responsibility, learn, and
improve rather than justification and justification.
4. Each of us will be responsible for providing greatness.

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5. We constantly strive for excellence and increase the bar, taking inspiration from external
benchmarks around the world.

Unethical issues faced by Reliance Jio

'Boycott Jio': Reliance accuses Airtel, VI of 'unethical campaign'; charges
'baseless', say rivals

Mukesh Ambani's Reliance Jio has asked the Telecom Regulatory Authority of India
(Trai) to take strict action against Vodafone Idea and Bharti Airtel for resorting to
"unethical" ways, spreading "frivolous rumours" that Jio will gain from the three
agricultural bills passed by the Parliament. However, rivals Airtel and Vodafone Idea, now
rebranded as Vi, have refuted the charges, calling it "baseless".
In a letter to the telecom regulator, Jio alleged that "large number of ports out requests,
wherein the customers are citing this as the sole reason for porting out of Jio without having
any complaints or other issues related to Jio services."
"This is further to our aforementioned letter dated 28 September 2020 highlighting the
unethical and anti-competitive MNP campaign, being run by Airtel and Vi to capitalize on
the ongoing farmers protests in the northern parts of the country," said Jio in its letter dated
December 11.    
Meanwhile, Bharti Airtel has refuted the charges, calling it "baseless". Responding to Jio's
complaint, Airtel said that it has just been made aware through media about an outrageous
compliant made to the Trai.
"Despite being provoked by some competitors who we know will go to any length to make
baseless allegations, adopt bullying tactics and use intimidatory behaviour we have always
conducted our business with character and transparency something that we are deeply proud
of and known for," Airtel said in a statement.
"The current complaint therefore deserves to be dismissed and thrown out with the contempt
that it deserves. It is in poor taste and is scurrilous to say the least," it added.
Airtel said it has operated in the telecom industry for 25 years and has competed hard in the
marketplace and striven to serve its customers with excellence. At the same time the
company takes great pride in treating its competitors and partners with respect, the Sunil
Mittal-led company said.
Meanwhile, Vodafone Idea, which recently rebranded as Vi, termed these allegations
baseless, saying that it believes in doing business with ethics.
"These are baseless allegations against us to malign our reputation. We strongly refute such
irresponsible comments on us," it added.

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16
TATA DOCOMO
DOCOMO – Do Communication Over the Mobile Network
Ethical Issues in Tata Docomo
 A contract was signed between Ratan Tata and
Docomo in the year 2009 which was not
honored. Under this deal, the Tatas had to buy
the Docomo shares in Tata Teleservices on the
rate of half the price in a span of 5 years. When
Docomo decided to stop functioning in 2014,
Tatas refused to buy back the shares at a
predetermined rate.

Reason for decline

 The change in the stand was due to modification in the central bank’s regulations
where RBI objected the deal between Tatas and Docomo. Original investment in
2009 made by Docomo was estimated to be $52.2 billion.

Actions taken by DOCOMO

 Docomo took Tatas to US and UK courts and filed a litigation in the Delhi High
Court. An international arbitration panel of 3 individuals commanded the Tatas to
compensate $1.17 billion for breaching the contract which was not paid. Later
Docomo sued Tatas in UK Commercial Court and in US to enforce the award. The
British court gave ruling in favor of Docomo to realize the amount against Tatas
properties in United Kingdom, subjected to Tatas contesting the adjudication. Tatas
argued that TISCO and Tata Motors JLR properties cannot be attached, as Tata Sons
in a small shareholder.
 Docomo applied another enforcement application in Delhi High Court. The Indian
conglomerate company challenged the process, but they had deposited the full sum
with the registrar of High Court in London. Docomo sued Tata Sons in District Court
of NY City demanding $1.2 billion in compensation that it had won in England Court.
RBI’s Stand in Tata’s case

 The regulatory body wanted to intervene in the current proceedings and asked to give
a chance to prove about the legality of the award. The RBI counsel wanted to show
that it was the Indian rule that governed the contract, yet LC reached a conclusion
without making a decision on the RBI issue and proceeded for a conclusion.
 The RBI advocate Mukund stated that if the transaction is enforced, it will set an
alarming situation because a void or voidable contract cannot be executed under the
Indian Law. He termed the act of Tata depositing the amount in arbitral court of
London as magnanimous act. Docomo was responsible for such acts as it was already
aware about the RBI regulations.

17
Resolution to the issue
 RBI’s filing was rejected by the Delhi High Court in which RBI stated that it violates
the Foreign Exchange Management Act (1999). Tata is seeking an out of the court
settlement in this case.
 This decision shows that courts are making it difficult for the Indian companies to use
FEMA (Foreign Exchange Management) Act as a defense for resisting contractual
obligations. Lack of closure of the Docomo issue was one of the reasons for dispute
between Cyrus Mistry and Tata Trusts (holds 66% in Tata Sons).
 The inability to find a solution by Ratan Tata’s successor was seen as a move to
damage his legacy.

Internal Environment Analysis of TATA DOCOMO

Brand Image of Tata and Docomo
TATA Docomo is a GSM-based cellular service provided by Tata Teleservices Limited
(TTSL), which was created as a result of a strategic partnership between the Tata Group and
NTT Docomo in November 2008.Docomo, headquartered in Tokyo, holds a 50% market
share in Japan and is one of the top mobile operators globally.
Problems with TATA DOCOMO
Due to the low costs, it may initially attract many members, but there is insufficient
infrastructure to support them. The main problem would be network coverage, where users
would rather have a call connected or go through than spend an extra Rs 0.5 to Rs 1 on a call.
In addition, as operators have thus far concentrated on the "land grab,"

Employee Mortality in Organization

Good attitude
People's thoughts about their employment, bosses, and firms are referred to as their "morale,"
and these feelings are correlated with the actions and attitudes that individuals do at work.
When an employee's morale is high, they are loyal to their employers, committed to their
work, and inspired to produce.
Poor morale
Low morale has a negative impact on employee performance and productivity, claims BNET,
a website that provides business management advice. Employees lose their will to work hard,
their dedication to their employers, apathy, and are missing more frequently. Low morale has
an adverse effect on businesses since less work is completed, and time and money are lost.
These traits might not necessarily be indicative of low morale.

TATA DOCOMO'S Management System

A new organization and management system will be introduced at the level of a chosen firm
or a group of companies (holding), as the situation may require. This is the aim of
management system and organization optimization. The conceptual planning of the client's
new organization and its implementation, which is broken down into specific organizational
and functional patterns including job structure and category, constitute the typical subject
matter of the solution.

TATA DOCOMO'S Organizational Culture

The organizational culture of TATA DOCOMO is the working environment that has been
developed via employee engagement. All the employees' life experiences, strengths, flaws,
education, upbringing, and other factors define the organizational culture. All employees
18
contribute to the company culture, even while executive executives play a significant role in
establishing it through their actions and leadership.

Environmental External Analysis

Politically unfavorable
• Recent spectrum allocation "2G-scam" is not favorable. There will be stricter control and
auditing systems because of the 2G Scam.
Due to the intense social pressure from the Anna Hazare Movement, the UPA would also
implement some new adjustments. TATA's ingrained anti-corruption policy may be to their
real benefit. TATA Docomo needs to be prepared for a patient game to put an end to this
political unrest.
Economically speaking, tele density increased from 4% in March 2001 to 53% at the end of
March 2010. The industry with the fastest growth is cellular telephony.
•Cellular telephony in India will undoubtedly continue to thrive thanks to a high growth rate,
increased tele density, and sustained domestic demand.
Social
 The growing youth population, the everyday adoption of new technologies, the higher
literacy rate, and the increased spending power of domestic consumers make this
industry more than alluring.
 lans and rates must be changed to reflect the market and social trends. It is also
important to provide innovative value-added services.
Technology
 Tata Docomo has the particular benefit of NTT Docomo's support, which has a track
record of using cutting-edge technologies. It is the first country in India to roll out 3G
services, which has led to a 30%–40% increase in VAS and plans to introduce 3G-
enabled mobile phones at competitive prices.
 Wimax technologies, a high-speed data connection, should be used to its full
potential. By 2012, Wimax is predicted to have 12 million subscribers. There is an
increasing focus on speed and coverage as 3G technologies have been implemented
on Indian highways.
Environment
 Environmentally, people are becoming increasingly concerned about the harm that
cellular waves can do to the brain and other body organs.
 •TATA Docomo should be the first to respond to public concern with creative ideas
that can make waves less dangerous.
 A number of service providers are currently in legal limbo and must contend with the
wrath of the CBI and judiciary as a result of recent allegations and rumor’s regarding
the sale of the 2G Spectrum.

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Cyrus Mistry – Whistle Blower at TATA DOCOMO
 It's likely that Cyrus Mistry's future at Tata Sons was written before he was hired.
Despite the nearly two-year-long selection process for the Tata Sons chairman, when
Mistry's name was finally released, he was viewed by many as a practical option.
 Shapoorji Pallonji has been a silent partner in the group since 1930, while the Tatas
and Mistrys have been related for three generations.
 Mistry was connected to both Ratan Tata and the group. Given that Ratan Tata was a
reluctant retiree, it indicates that this comfort had a significant part in his choices. The
board raised the non-executive director retirement age to 75 when Ratan Tata
announced his intention to retire at age 65. His presentation on how he will run the
organisation appears to have impressed the board members.
 Tata Tata Teleservices held a 22% share of Power's net worth at a time when its core
operations demanded all of the company's resources and then some. "Mistry helped
meet a pressing requirement by freeing up the funds.
 In 2012, Mistry didn't inherit a flawless kingdom since Ratan Tata's pricey
acquisitions had left the firm feeling unsteady.
 PERSONAL & UP CLOSE
 More serious cases of imbalances and trust concerns were beginning to surface.
Mistry advocated taking legal action against serial entrepreneur C Sivasankaran (Siva)
to recoup the cash he owed the company to settle accounts with DoCoMo on
September 15, 2016, during the Tata Sons board meeting. The board members
concurred, and it was decided to file a lawsuit. Mistry was shocked and disappointed
to learn that 48 hours later, before any legal action was taken, Siva had sent legal
notices to Tata Sons, Tata Teleservices, and DoCoMo, alleging that Tata Teleservices
had been mismanaged. Since only Tata Sons board members were aware of the
decision, Mistry's internal message challenging this strange coincidence was simply
dismissed.
 Bad things weren’t over yet. When DoCoMo activated a put option in the contract in
April 2014, everyone who had made the offer to the Japanese telco had to make up
the difference in the same ratio that they had sold in. On behalf of all parties,
including Siva, Tata Sons made the full deposit of the Rs. 8,450 crores granted to
DoCoMo by international arbitration. While all of the Tata Group firms made
payments, Mistry was trying to recover the Rs. 694 crore that was owed to Siva by
him.
 The Tata group had defended its position in reaction to the Money life story by stating
that the group company had given the loan to Siva for only a few days at market-
linked terms, and that the group company had not been obligated to repay the debt.

What happened to Tata Docomo at the End

 The dispute was resolved after the Tatas paid the compensation amount of
$1.2 B in the London Court of Arbitration.
 While considering public policy concern, courts should give importance to the
contractual rules and the roles it plays in constructing a favorable condition to
practice business.

20
21
 Conclusion
Telecommunication Industry has seen a drastic and dramatic change in last few decades. It all
started worsening may be from Dot Com Bubble which was seen in 2000 or the 2G Scam in
2007 and also, we have Telecom Bill 2022 who knows what the real advantages and
disadvantages are goes behind the Citizens.
Telecom industry have played major roles in all the industries pertaining to Communication.
Many companies had started and were doing good business serving good and hoping for
Profits and to exist in long run, like Tata Docomo, Uninor, Spice, MTS, Aircel and other
companies but was not able to Survive for a long period because different restrictions and
regulations implemented by regulatory bodies and Unethical practices they were up to.
In the last decade the industry has grown in all dimensions which we are left with the options
of 3-4 companies but one Tactical move by a Single company had laid huge burden on other
competitors which led them to huge loss in market capitalization and loss of existing
customers.
In the end as we Serge more towards upgraded of technology there will be increase in
Unethical Practices but as the government is in route of launching telecom bill, we need to sit
back and watch who are the real beneficiaries. No matter which bill or amendment comes in
to stop unethical activities there shouldn’t be any disruptions in our environment and Nature.

22
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