Business Ethics

Name : Karan Sodha

Roll
No. : AU2014043

Assignment : Evaluate the ethical concern

of following businesses :-

Legalizing
sports betting in India
Manufacturing/Selling of Tobacco products
 Legalizing sports betting in India

Introduction :
Gambling or other forms of betting are legalized as games all
across the world. However, with India, there is especially a
culture revolving around this, which goes on to make it an
immoral sport. In India, the Public Gaming Act, 1867 prohibits
most forms of betting other than horse racing, lottery and
rummy. Other than these three fields, no person is allowed to
engage in any form of betting, online or offline. Any person
violating the law has to face ‘dire’ consequences (please note
the sarcasm) of paying a fine up to ₹200 or face jail for 3
months.

Why are there different state gambling laws in

India?

The answer is the Seventh Schedule of the Constitution of India

which explicitly gives states the right to legislate and make policies
related to “gambling and betting”. It is quite clear in the Seventh
 Schedule Entry 34 List II which says states could legalize
gambling should they choose to do so.
Every state government is free to enact as well as legislate
gambling laws as per their discretion. Also, the Central
Government cannot intervene in any of the state proceedings.
To date, most Indian states have only made laws against
gambling, while 13 states have legalized lottery, and two states
(Goa and Sikkim) have legalized many other forms of gambling.
With a country as diverse as India and 29 separate states, you
can only imagine the variance in gambling laws.

Gambling laws and betting in India :

 The Kerala Gambling Act, 1960
 The Meghalaya Prevention of Gambling Act, 1970
 The Pondicherry Gaming Act, 1965
 The Rajasthan Public Gambling Ordinance, 1949
 The West Bengal Gambling and Prize Competitions Act, 1957
 The West Bengal Gambling Rules, 1958
 Uttar Pradesh Public Gambling Act,1961
 The Public Gambling Act, 1867
 Payment and Settlement Act, 2007
 Assam Gaming and Betting Act, 1970
 Bombay Prevention of Gambling Act, 1887
 Goa, Daman and Diu Public Gambling Act, 1976
 Karnataka Police Act, 1963
 Madhya Pradesh (C.P.) Public Gambling Act,1867
 Madhya Bharat Gambling Act, 1949
 Orissa Prevention of Gambling Act, 1955
 Public Gambling Act, 1867 Constitution of India, Seventh Schedule, List II, Entry
No. 34
 Punjab Public Gambling Act, 1867
 Sikkim Online Gaming (Regulation) Act, 2008
 Tamil Nadu City Police Gaming Rules, 1949
 Tamil Nadu Gaming Act, 1930
 The Andhra Pradesh Gaming Act, 1974
 The Andhra Pradesh Gaming Rules, 1976
 The Delhi Public Gambling Act, 1955
 The J. & K. Public Gambling Act, 1977

Betting Terms and Conditions :

https://www.indiabet.com/betting-rules

Ethical concerned involved in this business:-

According to law, Foreign direct investment is prohibited as well to do

collaboration with foreign technology in gambling business is also ban in
India under Exchange Control Regulations. If someone found guilty in
this case then (1.) one has to pay three times of the total amount
involve, where amount is quantifiable, (2.) Or one has to pay 200,000
INR where sum of amount is not quantifiable, (3) or ales convict has
pay 5000 INR per day from when one found guilty.
Wagering contract except horse racing are fall in the category of
voidable contract under Indian contract law.

Winner won't probably approach the fitting specialists to cause

specialist organization to pay rewards from betting. Be that as it may,
given the legitimate approval under the Gambling laws of Goa, Daman
and Diu, Nagaland and Sikkim, champ need to have the option to
approach the proper specialists to recuperate rewards from authorized
coordinators.[ CITATION Gan181 \l 1033 ]

Arguments in Favor and Against :

Favor :-

In India, majority of people believe that gambling or betting are

bad thing but there are some benefit we get by these activities
which are as under :

1) Firstly it boost up country’s economy through pumping new

money in market. If gambling become legal then the income

earn from it also become taxable. In 2013, only Goa contributes

135 crores through gambling.[ CITATION Tim13 \l 1033 ]

2) Curb black money and terror financing : Despite devoting
several legal measure and covert actions, legal enforcement
authorities are not able to curb it. Gambling and betting is
mostly done very secretly and which is handled in a delicate
manner. These activities could include terror financing. So
legalizing the activity will not only help curtail an important
source of black money and stop funds flowing to terror
agencies.

3) Huge Revenues : Estimates about the size of the gambling

market in India vary according to various private and
government agencies. According to KPMG report, the size
could be around $ 50- $60 billion, while other, more recent,
studies from financial institution peg the value even to higher
numbers. Even a normal estimate suggests with just 15 per
cent GST, the government could earn tens of thousands of
crores by legalising sports betting. If online gambling and
casinos are also permitted in a strong restrictive way, the
estimated tax revenue very huge to both state and central
government. These can be used to fund health and other
constructive projects of the government.
 4) Employment opportunities : Apart from revenue generation,
legalizing the gambling will surely create huge employment.
Globally, wherever gambling is regulated, it has created a
massive opportunity for employment generation. In India it
could create direct and indirect jobs for around 25-40 lakh.

Against :

1) Integrity is a core component in any activity, but in sports

and games is crucial to its success. It serves the basis for
the enjoyment of participants and spectators. But if the
gambling and betting are legalized, integrity and honesty will
be under great threat. Match fixing and spot fixing would
drastically increase. Athletes and players will be tempted.
Psychologically, players attracted to gambling naturally
because of their competitive nature, media success, money
and self-assured sense of entitlement .

2) If betting were to be legalised, this lower class of the

country will affect. Betting attracts the common man to try
their luck and tempts them to play with money. It is very
tough to imagine the consequences of a poor person losing
 his hard-earned money or his life saving on betting. Law
commission report on legalizing gambling.

3) Gambling is addictive game due to which one might be lose

control of his sensibility in cash disbursement which will

surely make one’s life horrible.

4) Tension in mind leads to depression which affects one’s

professional as well as personal life.[ CITATION Quo19 \l 1033 ]

Conclusion :

As we know that every coins has two sides Government

should make some rules like , betting business owner have to collect
customer’s details like Aadhaar card and PAN card which helps
government to keep watch on all transaction done by a person through
which government collect proper tax amount. There are many countries
in the world where betting is legal, and these country get many benefits
out of this. So according to me there isn’t any problem in legalizing of
betting.
 Manufacturin
g/selling of Tobacco Products :-

Introduction :

The tobacco industry comprises those persons and

companies engaged in the growth, preparation for sale, shipment,

advertisement, and distribution of tobacco and tobacco-related products.

It is a global industry; tobacco can grow in any warm, moist

environment, which means it can be farmed on all continents

except Antarctica. According to the WHO Framework Convention on

Tobacco Control “tobacco industry” means tobacco manufacturers,

wholesale distributors and importers of tobacco products; The treaty

provides its 181 member states the duty of "In setting and implementing

their public health policies with respect to tobacco control, Parties shall

act to protect these policies from commercial and other vested interests

of the tobacco industry in accordance with national law. One-third of illicit

cigarette manufacturing facilities are located in free trade zones of the

United Arab Emirates, Cyprus, and Russia, producing cigarettes that are

smuggled into third-party countries, undermining tobacco control policy .

 Ethical concerned involved in this business:-

The Cigarettes and Other Tobacco Products Act, 2003 is an Act

of Parliament of India which prohibit advertisement of such product
and also provide regulation of trade and commerce in, and
production, supply and distribution of cigarettes and other tobacco
products in India.[ CITATION Sec17 \l 1033 ]

Moreover, tobacco items can’t be sold or offered to individuals

whose age is less than 18 year, also one can’t not sell such
product in the limit 300 foot near the educational institutions. If
someone fail to follow this rule then he shall be charged 200 INR.

There are also some rules related packing like tobacco product
must be sold in a package which contains an appropriate warning. It
is also compulsory for owner or manager of public place to put a
warning board “No Smocking ” in appropriate manner at the
entrance and inside the premises.

Likewise, a firm who fabricates tobacco items and neglect to pursue

the standards or law related disappearing on bundles on first
conviction will be rebuffed with as long as multi year detainment or
with fine up to 5000 INR. Be that as it may, on ensuing conviction,
 a firm will be rebuffed with as long as multi year in detainment or
with fine which can stretched out to 10000 INR.[ CITATION Sec19 \l 1033 ]

Arguments in Favor and Against :

Favor :-
1) An advantage of using taxation to control population-level tobacco
consumption is that it can raise government revenue which can be
spent on services and materials aimed at public health and
wellbeing improvement.

2) As we know that currently India is facing burning problem of

unemployment. In this situation there are 3.32 million workers
employed in bidi industry, this is 7.04% of the entire manufacturing
industry in India

3) Estimates show smoking increases the risk: For coronary heart

disease by 2 to 4 times. For stroke by 2 to 4 times. Of men
developing lung cancer by 25 times. (Quora)

4) In 2005-2006, registered bidi manufacturing sector earn 1.73

billion which increase to 12.81 billion in the year 2010-2011.The

 profit Gross Value Added (GVA) ratio also increased from 17.1%

to 58.9% in 2010-2011.

5) Five health benefits of Smoking:

https://www.livescience.com/15115-5-health-benefits-smoking-disease.html

Against :-

1) Tobacco smoke contains more than 70 chemicals that cause

cancer.

2) Respiratory system:

A) emphysema, the destruction of the air sacs in your lungs

B) chronic bronchitis, permanent inflammation that affects the lining of the breathing tubes of

the lungs

C) chronic obstructive pulmonary disease (COPD), a group of lung diseases

D) lung cancer

3) Nicotine affects blood flow to the genital areas of both men and

women. For men, this can decrease sexual performance. For

 women, this can result in sexual dissatisfaction by decreasing

lubrication and the ability to reach orgasm.

4) Annually 4 million people die due to smoking. And according to

prediction, and within 10 year from now that figure will ascend

to 10 million.

5) These tobacco companies mostly focus on teenager and

children to compete and cover large market share. Because the

number of teenager is high in India.[ CITATION Wor19 \l 1033 ]

Conclusion :

This kind of industry earn profit by harming people. Tobacco leads to

many disease which affects general public. So, tobacco production
industry become hurdle which slowdown the growth of our economy. So
it is better to reduce the tobacco production. Also government has to
make strict rules against producing and selling this type of products. But
as we known that every coin has two sides we cannot ignore also the
positive side because if we completely ban these products then there
are chances of products sold in grey market.
 References :-
https://www.healthline.com/health/smoking/effects-on-body#6
https://en.wikipedia.org/wiki/Tobacco_industry
https://en.wikipedia.org/wiki/Health_effects_of_tobacco#/media/File:Risks_form_smoking-
smoking_can_damage_every_part_of_the_body.png
http://www.healthscotland.scot/media/1829/rapid-evidence-review-strengths-and-limitations-of-
tobacco-taxation-and-pricing-strategies.pdf
https://www.careeranna.com/articles/should-gambling-be-legalized-in-india/
https://www.careerride.com/view/gambling-or-betting-should-be-legalized-in-india-8964.aspx
https://economictimes.indiatimes.com/magazines/panache/fun-games-and-money-legalising-online-
sports-betting-can-make-india-rich-by-rs-19000-cr/articleshow/70475644.cms