India’s industry and business have grown immensely over the past few decades, and there is no shortage of benefits to do business with India. Low input costs, easy access to labor and a massive consumer base are just a few. However there is a rising question regarding the ethical means of India’s thriving business community. The thing is some people believe that corruption is necessary for growth. For example the 2G Scandal in India 2008 that granted telecommunication licenses on a first come first serve basis was unethical, but helped decrease mobile calls to two cents/ min. Also, there is corruption in India’s Government and uncovered scandals in sports that forces multinational managers to question India’s success in business at an ethical standpoint.

But why is the business ethics in India so different from, say, the West? Well, it goes back to their history of a society that treasures loyalty, friendship, clanship, and favors. As well, there is a famous Indian text Arthshastra, about using deception and brutality for a common good, which many businessmen think of as “their foundation of their strategic thought”.  Furthermore, there is a concept of Jugaad, basically meaning advancement through whatever means necessary.

In conclusion, India has been very successful in growth, though to the Western eyes may have been at an ethical cost, but the viewpoint and culture in India IS a lot different than the West. They have a different set of ethical rules, and a new equilibrium that will be hard to change. There are activists out there trying to bring the issue of ethics to the public eye and bring about reform. The situation is, to them it’s just the routine of business, but to us it is a problem of ethics.

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