NATIONAL INSTITUTE OF FOOD TECHNOLOGY

ENTREPRENEURSHIP AND MANAGEMENT

HARYANA-28
Deemed to be university (de-novo Category)
BUSINESS ETHICS & HUMAN VALUES
(MBA-303)
TOPIC: CASE STUDY ON JODHPUR CLOSURE

PRESENTED BY,

PARTHA BAUL FACULTY

V N RAI
RAMESHWAR LOKHANDE

TANMOY BAG

VIKYATH A S
CASE STUDY ON JODHPUR CLOSURE:
Fertilizer Corporation of India Ltd produced Ammonium Sulphate based on Gypsum
from mines in Rajasthan. After partition good mines went to Pakistan. A triple super
phosphate plant based on indigenous pyrite raw material was setup to produce gypsum
as byproduct to be used as raw material for ammonium sulphate. This scheme failed.

However all 11 gypsum mines started selling gypsum for other usage in competition
with state mining organizations of Rajasthan. One of the minister in Rajasthan state
government in collusion with another politician (a mining engineer) put up a proposal to
cancel lease of all FCI mines in Rajasthan rendering 370 employees of JMO surplus to
be retrenched.

Employees came to Nehru place, head office of FCI and staged fast until death. V N Rai,
CMD of FCI went to Jaipur to meet Chief Minister BHAIRAW SINGH SHEKHAWAT.
PS to CM was a very compassionate IAS officer. He arranged a meeting of VNRAI with
CM.
VNRAI made presentation to CM as below,

 Employees of FCI Jodhpur mining organization belong to Rajasthan.

 Majority belong to SC/ST and OBC categories
 They have special skill
 They cannot find employment elsewhere
 It is difficult to retrench them as labor laws are in their favor
 It will adversely affect operations of main fertilizer plants as all unions will support them.
 Your political image will be spoilt as Anti-Dalit and anti OBC.
 If we are given level playing field by selling our product in local market and cement plants
in north we can give an incentive of Rs 300perte to state organization to improve their
profitability.
 We can turnaround JMO in a year. If we don’t achieve turnaround we will ourselves close
JMO.

CM called chief secretary, Mr. Mehta and told him that he was in agreement with VNRAI.
Mr. Mehta also agreed. Proposal of retrenchment was kept in abeyance. JMO employees
agitating at Nehru Place returned to JODHPUR. In the meantime bids were invited for sale
of natural gypsum for reclaiming saline land in UP by WORLDBANK. JMO won the
contract and made a big profit. JMO also made profit in local sales and sale to cement
plants in North India. Later JMO was made a separate independent company.
Ever since it is running in profit.
1. What ethical principles were used to convince Chief Minister of Rajasthan to keep
retrenchment of JMO employees in abeyance?
 The ethical principles used to convince Chief Minister of Rajasthan to keep retrenchment of JMO
employees in abeyance are as follows:
 Commitment to excellence: According to the case, if they are given the level playing field by
selling the product to local market and cement plant in North, then we can give an incentive to
state government to improve profitability.
 Respect for others: As majority of the employees are SC/ST and OBC, it is important to give
respect to each and every individual for their human dignity, rights and interest of all
employees.
 Leadership: VN Rai was conscious of the responsibilities and opportunities of his position of
leadership and seek to be positive ethical role model by his own conduct and by helping to
create an environment in which principled reasoning and ethical decision making were highly
prized. Hence he took an initiative to look into the matter and made serious effort to work for
the welfare of human kind.
2. Was it ethical for state mining organization to ban sale of natural gypsum by JMO in local
market and that to cement plant in North India?
 No, it was not ethical for state mining organization to ban the sale of natural gypsum. Because it
affects the functionality of JMO and other businesses like cement plants. Thereby employees will
lose their jobs due to retrenchment.
3. What principles of negotiations were used by VNRAI to convince CM to keep Retrenchment in abeyance?
 The principles of negotiations are:
 Employees had special skills and were local people to do work in that organization.
 It will adversely affect operations of main fertilizer plants as all unions will support them and hence it will
not generate revenue for state government.
 Your political image will be spoilt as Anti-Dalit and Anti OBC if the state government close down the
company.

4. Which actors were most unethical in this Case study? Give reasons
 Most unethical actors in this case was
 One of the minister in Rajasthan state government in collusion with another politician (a mining engineer).
The reason behind this is they were selfish about their own and trying to cancel the lease of all FCI mines
just because they were not earning the profit.

5. Who was most ethical in this case study? Give reasons

 V N Rai was the most ethical in this case study because he took the initiative to look into the matter and went as
a volunteer to solve this problem by considering the social activities and ethical congruence (System ethics,
Organization ethics and Individual ethics).
6. What ethical learning do you get from this case study?
 The ethical learning we got from this case study includes leadership, culture, communication,
systems thinking, and problem-solving orientation, which are important in creating learning
organizations and in encouraging ethical behavior.

7. What learning as to negotiations do you get from this case study?

 Organization possessing ethical cultures create and maintain a shared pattern of values,
customs, practices, and expectations which dominate normative behavior in the organization.

8. How was political interest reconciled with human interest?

 Four components in intra-state peace processes are,