Business Ethics – Ghanshyam Das Rathod – Ghanshyam Machineries Pvt Ltd
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The court rose to its feet as the Judge wound up his long and carefully worded verdict. In the
defendants chair sat a towering middle-aged gentleman in a natty blue pin-stripe suit, an
expression of acute boredom numbing his otherwise handsome face. Clearly, this was a man who
had been through many a trial – a man who had seen it all. Sitting next to him and listening
intently to every word of the Judges verdict was a dark, well-built young man, presumably in his
mid-thirties. He seemed to be listening intently to the Judges verdict, but somewhere written
across his face was a look of resignation, as if in reluctant acceptance of a hard truth. The
prosecutors lawyer, a highly respected name in his fraternity, looked indignant at some grave
injustice about to be inflicted upon him and his client. The client herself looked a defeated
woman. More than anything, the last few hours at the court had only reinforced her worst fears.
With every word that the Judge uttered, she felt her tireless efforts over the last year being
mercilessly swept away by the raging waters of the Purna – a cruel irony, given that protecting
the waters of the Purna had become her raison dêtre.
Ghanshyam Das Rathod
Ghanshyam Das Rathod, 52, had built his sprawling empire almost out of nothing. Born and
raised in a family of garment traders in suburban Haridevpur, he was the third of seven siblings.
Although education had never been strictly enforced in the Rathod household, Ghanshyam took
his studies very seriously. His academic prowess notwithstanding, his neighbours knew him to
be a lad of tremendous ambition and resolve. Having breezed through school with distinction,
Ghanshyam went to study law at the renowned Radhapur University, some 300 kms away.
Completing his education, Ghanshyam returned to Haridevpur to look after his ageing fathers
business. Lucrative as his fathers fortune was, the commonplace business and mundane life in
Haridevpur did not appeal to the ambitious young Ghanshyam at all. Perhaps more pertinently,
he liked to see himself as a self-made man and did not want to stake claim to the wealth his
father had amassed. Soon thereafter, Ghanshyams father fell ill and succumbed to his illness
after prolonged suffering. Dutifully performing the last rites of his father to the tee, Ghanshyam
handed over the reigns of his fathers empire to his younger brothers. Late one balmy April
evening, after taking leave of his ageing mother and wishing his brothers luck, he set foot for the
city to seek his own fortune – to build his own empire.
The Early Years
Ghanshyam Machineries Pvt Ltd, Ghanshyams brainchild, had a history of its own. Starting out
with several failed ventures in the city, Ghanshyam finally stumbled upon the idea of
Ghanshyam Machineries Pvt Ltd. Its main business was manufacturing state-of-the-art farm
machinery and equipment ranging from tillers, ploughs, ridgers, harrows, levelers, slashers to
sprinklers. He identified the nouveau-riche agrarian society that had sprung up on either side of
the Purna in the Azamgarh hinterland as his target customers. However, it was in choosing his
suppliers that Ghanshyam was at his astute best. He acquired high quality mild steel in measured
quantities from iron ore plants located upstream along the Purna, and mixed it with inferior
quality alloys of cheaper metals. Identifying the seasonal need for farm equipment, he lured
away skilled forgers and blacksmiths from the iron-ore plants to work for him on a rotational
basis with hefty remunerations. The tool fabrication was carefully executed in a plant
Ghanshyam set up at the banks of the Purna. While the tool bodies would be crafted out of
inferior quality alloy, the most skilled craftsmen were employed in fashioning the tool tips and
edges out of the best quality mild steel.
This turned out to be a highly profitable venture for Ghanshyam. By diluting the mild steel with
spurious alloys, he was able to drive costs down to the bare minimum. Apart from a small team

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