Itc E-Choupal Case Study
1. The ethical issues in this case may be considered to revolve around rights—the rights of the poor farmers and their families, the rights of each business entity and person involved in bringing the produce to market, and even the rights of the end customer to understand the pertinent issues involved in the supply chain. How do you make trade-offs among these various persons’ rights? Which rights predominate? Give the rationale underlying your answers to this question.
The rights of poor farmers and their families are predominant in this case. In the past, the farmers were restricted to sell their products in the local mandi. The products supply chain channels were both corruption and opaque. They had to go through middlemen and prices were very low. The interests of farmers were damaged seriously. It was unfair for them to suffer so much in the modern society. They need a transparent, open and competitive business framework to sell their products and gain rewards. The business entity, such as ITC has the right to pursue profits and get reserved reputation in this case. There are kind of person involved getting hurt in this case, the middlemen. Because the healthy e-Choupal business model doesn’t allow this kind of intermediate exist. But they could become another form in the supply chain, the Sanchalak. End customer has the right to get quality goods and services. After e-Choupal reform initiatives, consumer can get better products with more reasonable price than ever.
2. How does the e-Choupal business model intervene to break and/or ameliorate the circle of low productivity (see Exhibit 7)? If you had to defend the e-Choupal idea solely on the basis of ethical principles, how would you do so? Be sure to address the issue of social justice perspective poverty in your answer.
The e-Choupal business model provided farmers the supply chain with more transparency and choice, which break this low productivity circle. The framework was structured in several ways.
The rights of poor farmers and their families are predominant in this case. In the past, the farmers were restricted to sell their products in the local mandi. The products supply chain channels were both corruption and opaque. They had to go through middlemen and prices were very low. The interests of farmers were damaged seriously. It was unfair for them to suffer so much in the modern society. They need a transparent, open and competitive business framework to sell their products and gain rewards. The business entity, such as ITC has the right to pursue profits and get reserved reputation in this case. There are kind of person involved getting hurt in this case, the middlemen. Because the healthy e-Choupal business model doesn’t allow this kind of intermediate exist. But they could become another form in the supply chain, the Sanchalak. End customer has the right to get quality goods and services. After e-Choupal reform initiatives, consumer can get better products with more reasonable price than ever.
2. How does the e-Choupal business model intervene to break and/or ameliorate the circle of low productivity (see Exhibit 7)? If you had to defend the e-Choupal idea solely on the basis of ethical principles, how would you do so? Be sure to address the issue of social justice perspective poverty in your answer.
The e-Choupal business model provided farmers the supply chain with more transparency and choice, which break this low productivity circle. The framework was structured in several ways.