GS Paper 4 20 marks · 250w 20 min Hard
Parmal is a small but underdeveloped district. It has rocky terrain that is not suitable for agriculture, though some subsistence agriculture is being done on small plots of land. The area receives adequate rainfall and has an irrigation canal flowing through it. Amria, its administrative centre, is a medium sized town. It houses a large district hospital, an Industrial Training Institute and some privately owned skill training centres. It has all the facilities of a district headquarters. A trunk railway line passes approximately 50 kilometres from Amria. Its poor connectivity is a major reason for the absence of any major industry therein. The state government offers a 10 years tax holiday as an incentive to new industry. In 2010 Anil, an industrialist, decided to take benefits to set up Amria Plastic Works (APW) in Noora village, about 20 km from Amria. While the factory was being built, Anil hired the required key labour and got them trained at the skill training centres at Amria. This act of his made the key personnel very loyal to APW. APW started production in 2011 with the labour drawn fully from Noora village. The villagers were very happy to get employment near their homes and were motivated by the key personnel to meet the production targets with high quality. APW started making large profits, a sizeable portion of which was used to improve the quality of life in Noora. By 2016, Noora could boast of a greener village and a renovated village temple. Anil liaised with the local MLA to increase the frequency of the bus services to Amria. The government also opened a primary health care centre and primary school at Noora in buildings constructed by APW. APW used its CSR funds to set up women’s self-help groups, subsidize primary education to the village children and procure an ambulance for use by its employees and the needy. In 2019, there was a minor fire in APW. It was quickly extinguished as fire safety protocols were in place in the factory. Investigations revealed that the factory had been using electricity in excess of its authorized capacity. This was soon rectified. The next year, due to a nationwide lockdown, the requirement of production fell for four months. Anil decided that all employees would be paid regularly. He employed them to plant trees and improve the village habitat. APW had developed a reputation of high quality production and a motivated workforce. Critically analyse the story of APW and state the ethical issues involved. Do you consider APW as a role model for development of backward areas? Give reasons.
Subtopic: Case Study · inclusive rural enterprise and business ethics
How to structure your answer
Brief facts → stakeholders → positive ethical dimensions of APW → ethical issues/concerns (illegal electricity use, dependency, MLA liaison) → reasoned judgement on whether APW is a role model.
Detailed model answer
294 words · target 250 words · 20 min
Facts
Anil set up Amria Plastic Works (APW) in backward Noora village using a tax holiday, trained local labour, generated local employment, ploughed profits into village welfare (temple, greenery, CSR-funded self-help groups, school subsidies, an ambulance), retained workers with pay during the lockdown, and built a reputation for quality — but the factory was once found using electricity beyond its authorised capacity, later rectified.
Stakeholders
- Anil / APW as an enterprise.
- Noora's workers and villagers.
- The state (tax revenue, regulation) and the local MLA.
- The environment and future generations.
Positive ethical dimensions
- Inclusive development: local jobs, skilling and dignified livelihoods in a backward area.
- Corporate social responsibility: genuine reinvestment in health, education and women's empowerment.
- Ethic of care and trust: paying workers through the lockdown and engaging them in tree-planting — valuing people over short-term profit.
- Compliance culture: fire-safety protocols were in place and prevented disaster.
Ethical issues / concerns
- Use of electricity beyond authorised capacity — an illegality amounting to unauthorised use of a public resource, even if later rectified; profit should not have come at the cost of legal compliance.
- Risk of dependency: a single-employer village economy is vulnerable if APW falters.
- Liaison with the MLA: legitimate advocacy for bus services is welcome, but such closeness must stay transparent and free of favouritism or crony ties.
Is APW a role model?
On balance, yes, with qualifications. APW demonstrates that ethical, inclusive capitalism can transform a backward region — aligning private enterprise with public good, employee welfare and community development. But a true role model must also be scrupulous about legal compliance and environmental responsibility; the electricity violation is a real blemish. If that lapse is treated as an aberration that was corrected, and if the model avoids fostering dependency and undue political proximity, APW is a worthy, replicable template for backward-area development.
What an examiner expects to see
- Positives: inclusive local employment, skilling, genuine CSR in health, education and women's empowerment.
- Ethic of care: paying workers through the lockdown and engaging them in habitat improvement.
- Compliance strength: fire-safety protocols in place prevented a larger disaster.
- Concern: using electricity beyond authorised capacity is an illegality, despite later rectification.
- Concern: single-employer dependency makes the village economy vulnerable.
- Concern: MLA liaison is legitimate advocacy only if transparent and free of favouritism.
- Verdict: a role model with qualifications — inclusive development must pair with legal and environmental probity.
Concrete cases, schemes and judgments
- CSR obligations under Section 135 of the Companies Act, 2013 (2% of net profit).
- Self-help group (SHG) models empowering rural women (e.g. NRLM/DAY).
- Tax-holiday incentives for industry in backward areas as regional development policy.
- Business-and-human-rights and stakeholder-capitalism frameworks.
- Environmental and electricity regulations governing authorised industrial capacity.
Terminology to weave into the answer
inclusive developmentcorporate social responsibilitystakeholder capitalismethic of carelegal compliancebackward-area development