- 1. Volume 3 , Issue 1January 2014IN THIS ISSUE: CORPORATE
SOCIAL RESPONSIBILTY .....1 BITCOIN: LATEST GLOBAL CURRENCY.1
CORPORATE SPEAK ....1 COMPANIES OVERVIEW... 3 QUOTE FOR THE MONTH.
.4 Masters of International Business , Centre for Management
Studies , JAMIA MILLIA ISLAMIACorporate Social Responsibility
Business persons have always been concerned with their own profits,
but huge pressure from society has forced them to sit and think
about their means of profits as well. The need of the day is
genuine business responsibility and societal trust in business. In
earlier days the organizations were having a common thinking that
the business of business must be only business, the rest was none
of their business. Many of US based Business Corporation has made
huge profits for their owners in 20 th century and some have
created trust in their name through philanthropy. . But the damage
that these companies had done to the environment and community in
course of Cont.on page 2Bitcoin: Latest Global CurrencyCORPORATE
SPEAKAn introduction Bitcoin is a digital currency created by
Satoshi Nakamoto. Bitcoin was conceived in Japan in 2008 but it
became operational in 2009, similar to wallet on some e- commerce
website which can be used to purchase goods online. It is a crypto
currency because it uses cryptography to control the creation and
transfer of money. Advantages Low transaction fee (almost zero)
versus transaction fees (2-4%) charged by credit card companies and
anonymity led to rising Cont...on Page 4Executive Director Amira
Foods (Delhi)Mr. Manish TandonQues 1: What all are the
challenges/opportunities that volatility in rupee has presented to
you? Ans: Thats a very interesting question, see as far as Indian
exports are concerned it is definitely an opportunity because the
realisation of dollars is higher. I would say opportunities are
immense when it comes to dollar crossing over a certain limit, we
become more competitive. The moment dollar crosses threshold,
opportunities are there for the exporters and people have tapped
it. Cont.on Page 2
2. Page 2Corporate Social Responsibility Cont..from Page 1
making profit led to creation of many laws to constraint their
conduct. Douglas C North received the Nobel Prize in economics in
1993 for his work on the development of institutions and their role
in human progress. He defined institutions as the humanly derived
constraints that structure political, economic and social
interactions. Constraints, he said, are derived as formal rules
including constitution, laws, property rights and informal
restraints include sanctions, taboos, traditions and codes of
conduct. There is definitely some force driving political and
economic institutions in 21 st century. This storm has been caused
by recent collision of many forces which are strengthening with
time. They are open market system democracy and principle to human
rights, the growing awareness towards the usage of earth to expand
economies and availability of information to people everywhere
through advancing means of communications. The new Indian Company
Law that received the Presidents assent includes novel provision
which made it compulsory that companies should spend 2% of their
profit on corporate social responsibility. However there is a buzz
about matters of details, such as what will include genuine CSR
expenditure and how and who will certify it. Whereas we must
examine the effect this expenditure of 2% of profits will have on
the direction we want the business to take, the improvement of
genuine business responsibility and societal trust in business.But
it is an implementation nightmare with no proper enforcement
mechanism. Only minimum requirement are prescribed and the actual
implementation of the policy is left to the company itself. The
bill does not seek to implement or enforce the CSR policies of
individual companies to monitor and regulate the activities under
it. CSR policies and reports are usually designed to inform
investors, shareholders and other stakeholders about the social and
environmental performance and philosophy of a company rather than
to satisfy government scrutiny.The fear is that so called CSR may
enjoy greater legitimacy and state support with this bill. CSR as
imagined in the bill is ineffective without corporate
accountability. There are as many CSR policies as many companies
i.e. if a company is spending on educational institutions to
safeguard the interest of beneficiaries of such projects, the
content and quality of curriculum, assessment and improvement have
to be insured. It is well known that it is not in the DNA of the
companies to altruistic. If companies engage in CSR activities it
is usually in pursuit of short term or long term benefits. Growing
corporate interventions over economic and political affairs has led
to some critical social issues of today and it may be prudent to
avoid such influence in social policies even under the garb of
CSR.By-Tabish Md Jan 1st Year MIB,JMICont.from page 1As far as
challenges are concerned, this volatility is not good. You can make
temporary profits but if you are talking in general looking at the
top, in the long term its not conducive for trade. This situation
definitely impacts Indian economy and it is not good for the
country. If you specifically talk about exports it might give a
monetary gain but overall i think if the currency is stable
exporter are more focused and certain in their working, allowing
them to make long term and medium term decisions. Ques 2: In todays
competitive market, how do you maintain your share of global trade,
as Pakistan and Vietnam are providing the same commodity at a
competitive price? Ans: India has a soil structure which gives you
better length on your basmati plus the disadvantage with Pakistan
is the technology. Their technology know-how is not so strong, when
I am saying this I am specifically referring to parboiled
(Partially boiled in the husk) rice if you compare their parboiling
structure. Normally in the European market or in United States or
United Kingdom i.e. in the developed world where basmati is most
consumed, Pakistani basmati is not very well accepted as aflatoxin
levels are normally higher because most of their plants dont have
proper driers. Indian basmati is preferred worldwide. If you go to
the international market and you talk about Indian basmati it will
be preferred because of its quality. 3. Page 3 Cont..from Page
1Ques 3: Which are Amiras potential markets for Indian Rice, apart
from MENA (Middle East North Africa) region (where Indian rice is
widely accepted)? Ans: MENA region, if you focus more on Middle
East its the chunk which goes. Iran is the highest and biggest
importers of rice they touched 1 million tonnes of import only from
India. Saudi Arabia is the second close to about 640-650 thousand
tonne of imports and UAE is third. Except this, basmati is consumed
mainly in the United States and United Kingdom market, which is
basically the developed world. So these are the other potential
markets. United States and United Kingdom are premium end basmati
consumers and a lot of volume is flowing from India. Ques 4: How do
you position your packed rice in the domestic and international
market against your competitors? Ans: When you say Amira, you talk
about quality. Our positioning is on the top end, its a luxury
premium brand. Even at small retail stores you will find our rice
offers you the best quality best price and it is top notch product.
Now trend is changing people have more spending power, they are
willing to spend more on their food and Amira is giving them value
for money. Once you taste a product which is superior automatically
sales would come in. We are focusing on marketing part-domestic as
well as international. Quality will sell; people will come back and
buy. Ques5: Do you think that the government policies are conducive
and supportive for the rice industry or there is a need for
reforms? Ans: The only point i can say here is that Indian
government has to be more stable. So far the government policy has
supported and promoted the export of basmati. Ques 6: What will be
the impact of FSB (food security bill) on the domestic and
international trade of rice? Ans: FSB is not going to impact normal
trade or the exports of basmati rice, not at all. I think it wont
have any impact on Amira selling the rice or any other company
selling the rice in the domestic or international market. Ques 7:
what are the basic qualities a person should have to excel in
international trade? Ans: ( laughs)..... the most important thing
is to be focused. International trade is very technical in the
sense that it requires a lot of knowledge on documentation,
logistics, government schemes and benefits which you get out of
exports. so off course you have to be well prepared and learn these
things. The most important thing is to be focused in life in
whatever you do be it international trade or any other trade. Ques
8: What will be your message/advice to international business
students at Jamia Millia Islamia? Ans: What I can say is that
whatever you do dont lose your concentration. You need to know
where your strength lies and you need to work on your strength.
Identify your strengths work on them try and improve. Rather than
master of all you become jack of none. If you want to excel you
need to be thoroughly knowledgeable about lines which you are
choosing do that and InshaAllah I am sure you will reach wherever
you want to be.About Amira Foods AMIRA group was founded in 1915,
Amira has evolved into a leading global provider of packaged Indian
specialty rice, with sales in over 40 countries today. Amira Foods
generate the majority of the revenue through the sale of Basmati
rice, a premium long-grain basmati rice grown only in certain
regions of the Indian sub-continent, under Amira flagship Amira
brand as well as under other third party brands. Amira Foods fourth
generation leadership has leveraged nearly a century of experience
to take the Amira brand global in recent years. Amira Foods
recently launched new lines of Amira branded products, such as
readyto-eat snacks, to complement Amira Foods packaged rice
offerings, and we also sell bulk commodities to large international
and regional trading firms. 4. Page 4Masters of International
Business, Centre for Management Studies, Jamia Millia Islamia
E-mail: [email protected], [email protected],
9650430820,8285817199Quote For The Month The brave may not live
forever, but the cautious do not live at all!" Richard Branson
Founder Virgin GroupBitcoin: Latest Global Currency Cont..from Page
1EDITOR-IN-CHIEF: MS.SUNAYANA KUMAR Assistant Professor. CMS, JMI
STUDENT EDITORS: Michael Akbar Habib Ullah Siddiqui Suban Khalique
Ajam INTERVIEWED BY: Suban Khalique Ajam Uddipan SharmaCONCEPT AND
DESIGN: Samik SarkarWEBSITE DESIGNER: Mohd Ibrahim BadarChina. BTC
China capitalised this opportunity and met the demand thereby
becoming the worlds largest bitcoin exchange. BTC China handled
around 1/3 of worlds bitcoin transactions. The country has recently
forbid banks and payment processors from converting bitcoin into
Yuan.popularity of bitcoin. Bitcoin is not affected by high and low
of inflation. With bitcoin, money can be received or sent anywhere
and anytime without a bank acting as an intermediary. Bitcoin can
be exchanged and managed through various websites (Like
www.bitcoin.org or www.thevillage.me) and software along with
physical bank- RISK ASSOCIATED WITH BITCOIN notes and coins. The
anonymity associated with Number of websites accepting bitcoin with
respect to transacbitcoin as a payment is increas- tions has made
it a useful tool ing gradually. It is neither is- for transfer of
fund by criminal sued by a bank nor by any gov- or purchase of
illegal item. It is ernment, also are they not even the worlds most
volatile currecognized by any regulatory rency. There is no
regulator for agency or any government the currency which is a
major body. Newly minted bitcoin are concern for the governments
given to bid coin miner who worldwide which makes it diffiperform
complex calculation to cult to track thieves and those verify bit
coin transaction to dealing in black money. Most common
vulnerability prevent misuse of currency. Bitcoin has been a
subject of associated with the bitcoin is security due to ties with
illicit that bitcoin wallet can be acciactivity. Bitcoin is free
from the dentally deleted, lost or stolen. problem of double
spending as it verifies each transaction INDIAN ANGLE added to the
block chain. Total According to the Wall Street number of bitcoin
in the world Journal, India is among the top is limited to 21
million, around 30 bitcoin using countries. 12 million bitcoin are
in circu- There are 30000 Bitcoins in lation now. Trading bitcoin
for circulation in India and 50 compaper currency take place in
mercial establishments have bitcoin exchange such as Japan been
using it. These establishbased MT GOX or till recently ments
include restaurants, salons, etc. A report in tech B.T.C China.
crunch an American technology BITCOINS AND CHINA After the
introduction of bitcoin website says a salon in Chandiin 2009, the
value of one bit- garh became 1st shop in India coin surpassed
$1100 in 2013, to officially accept bitcoin. thanks in large part
to a surge Some entrepreneurs in Benin speculative interest from
galuru have teamed up to form the Bitcoins Alliance of India(BAI),
so as to decide how they want to lobby for the acceptance and use
of Bitcoin in the country. Further, KOENIG an IT SOLUTION PROVIDER
has launched a training course in bitcoin, it has designed a 4 day
programme, the course will be offered from all Koenig centres in
India. A very important step is to set up a bitcoin exchange in
India, but this setting up of exchange in India is possible only
with approval of regulatory bodies like SEBI and RBI.In December
2013, RBI asked some of the bitcoin traders to suspend their
operations. The RBI is worried about security, legal and financial
risks. These risks include losses due to volatility, money
laundering, etc. ByMichael Akbar2nd Year MIB,JMIFor Previous
Editions Pleases Visit www.jmimibytes.webs.com
