Wednesday, June 29, 2011

Should Ratan Tata advise Mukesh Ambani about how to use his wealth?

A couple of days ago famous industrialist Ratan Tata commented about the lavish life style of another billionaire business tycoon Mukesh Ambani quoting his 27 storied Mumbai house viz., Antilla. Tata said that Mukesh Ambani's house Antilla represents the rich Indian's lack of empathy for the poor. His remarks: "The person who lives in there should be concerned about what he sees around him and [asking] can he make a difference. If he is not, then it's sad because this country needs people to allocate some of their enormous wealth to finding ways of mitigating the hardship that people have." 

Is Ratan Tata right in his remarks or is he misguided in his judgements? Is he aware about the role of an entrepreneur in an economy or is he ignorant of this basic economic fact? Or is his remarks has some underlying assumptions which make those remarks perfectly apt for Mukesh's lifestyle? Let me deal with these questions one by one. I take two scenarios to carry out my analysis. In first scenario we assume that Mukesh Ambani is an honest entrepreneur and his profit comes from the market competition. In second scenario we assume that, Mukesh is not an honest entrepreneur and his profit comes from his business ties with government officials and his manipulation of the system of State. We see the implications of Ratan Tata's remarks under both these scenarios.

Scene 1: Mukesh is an honest entrepreneur
I first make an assertion and then go onto prove it. If Mukesh is an honest entrepreneur then his profit - which he earned in the market competition - is absolutely legitimate, and if he don't desire to do a philanthropist work then that is his voluntary choice. Ratan Tata has no right whatsoever to advise Mukesh about allocating his honestly hard earned wealth amongst the poor people or to comment on his lavish lifestyle.

As Ludwig von Mises explained, the only way in which an entrepreneur can make profit in the market competition is by serving and fulfilling the most urgent wants of his customers in the best possible way, and that best possible way is of providing top quality goods at the lowest possible price. Only those entrepreneurs succeed and make profit in the market process who can ascertain and fulfill the subjective wants of customers in the best way compared to his counterparts. 

By producing and selling top quality goods at a lowest possible price successful entrepreneurs allow even the very poor people to buy his products. By allowing them to buy his products he lifts their standard of living; he lifts them out of their poverty even without raising their nominal meager income. That happens because with the falling prices in the market with the same amount of nominal income people can now buy more goods and services i.e., their real income rises. And no sane person will deny that this is the real way of increasing prosperity in the society; this is the true way of eliminating poverty and lifting the standard of living of millions of poor people. 

Philanthropy, about which Ratan Tata is advising Mukesh, will only help poor people in a very short run i.e., for the urgent immediate consumption purposes. Such help to poor people will actually harm them in the long run by making them dependent on such easy free money. It will not cultivate any habit of hard work and independent living in those people. Redistributing the income will only exacerbate the problem of poverty because human nature is such that most people will always prefer the free goods. Such allocation of rich peoples' income will make everyone of us poor too because rich people play an important role of providing essential savings for the economy. And without savings it is impossible to sustain a labor population in present time which is involved in production of intermediate capital goods. And without capital goods it is impossible to increase the future production of final consumption goods, and without that progress (so-called growth) is not possible. Capitalist class - which includes people coming from all strata of society, and not just rich - plays a pivotal role of supplying this saving. If they are forced to allocate their saving to poor people, who will mostly use it for immediate consumption, then society and economy cannot progress and without progress everyone of us will be poor one day for sure.

And people should not forget another vital economic truth that, honest entrepreneur do not become rich by exploiting the public, but they are made rich by their consumers i.e., the same public. Consumers voluntarily buy the products sold by such sellers because they prefer their products over other sellers. And in this process they give their portion of income to these entrepreneurs making them rich in turn. Profit is a signal that the businessman is fulfilling the most urgent wants of his consumers in a best possible way, and that's why he is rich. On the other hand those entrepreneurs who make losses are not fulfilling consumers' wants properly and so they remain poor in turn by going broke! (to deeply understand the beautiful system of profit & loss I will advise my readers to read Mises' wonderful book, Profit and Loss).     
So, if Mukesh is an honest entrepreneur then he has all the rights to keep and use his profit in whatever way he wants to. 

Scene 2: Mukesh is a dishonest entrepreneur
But, if Mukesh Ambani is a dishonest entrepreneur and his profit comes solely from his friendships with the government bureaucrats and politicians then he has no right whatsoever on his wealth. Profit generated by such dishonest political maneuvering is immoral. In a system of government such businessmen are working not to serve their consumers but only to serve the politicians and bureaucrats who help them in restricting the market competition. They actively lobby government so to establish their monopolies in the market. Through these monopolies then they fleece the consumers. And because their profit depends on exploiting the political system they don't care about their consumers. In fact they go to any length to harm their consumers for making such illegitimate and immoral profits. 

This type of system is historically known as 'fascism' and sadly in today's world most of the businessmen, especially the big business houses are making their fat profits by this way only.

If Mukesh Ambani (also Ratan Tata and all others) is doing his business in cahoot with the government officials then his profit is illegitimate. If one day India becomes truly a free country then he should be stripped of his illegal profits (property) and should be convicted and punished for his crimes against the people. He and all such dishonest business tycoons should be incarcerated, may be hanged.       

Looking at these economic facts, if Tata and Mukesh both are honest businessmen and they really want to help people of this country then instead of  allocating their profit to the poor people they should use that capital in producing top quality goods at the lowest possible price. They should try to provide as many economic goods as possible to people of India through market competition. Tata and Mukesh both can profit by serving the needs of poor people. There exists a thriving market even in remotest rural poor areas of the world as C. K. Prahalad has shown. All capable entrepreneurs (existing and new ones) should provide top quality private schools, hospitals, private roads, electricity, water works, sanitation, home etc. goods in these areas at the lowest possible price. That will be the best possible moral way of making a difference in poor peoples' lives; that is the only way in which these entrepreneurs can help the poor in mitigating their hardships. Allocation/redistribution of wealth will only result in misery for all of us.   


kapil69 said...
it's not about being honest/dishonest? it's about show-off lavish life style in a locality which is deprived & it doesn't make sense at all. Every entrepreneur can't be like Bill Gates, i agree & there is no need to be. Ambani can purchase Al Burj or anything like that, nobody will ever comment on that.

Post a Comment

Please leave a civilized comment. Use of bad language is strictly prohibited. I always welcome a healthy discussion.

If you want to carry on the discussion further with me (or want me to reply to your comment) then please email me at: Privately we can continue the discussion.

Wednesday, August 6, 2008

Preparing for an Inspection

July 11th, 2008
Inspections and Audits
First we need to know the difference between an Inspection and an Audit, which is:
An Inspection takes place at a lower level (normally employee or first line supervisor), it is done more frequently (daily, weekly monthly) and is focusing on the detail of all aspects within the working environment, for example: the fire fighter or external fire contractor will inspect all 160 fire extinguishers in the working environment every month.

An Audit is done at a higher management level or externally by a professional/specialist (lawyer or ISO/OHSAS lead auditor), it is done less frequently (once every 3 months or 6 months or annually) and it consist of a process of random sampling (looking at a representative sample), for example: part of the OHSAS18001 audit might consist of looking at emergency preparedness and response and therefore you would audit randomly fire extinguishers 7, 88, 122 & 149 to determine if the implementation of this section was done effectively.
So how do you prepare for an inspection?
Here are the steps in the process:
Determine which area or aspect needs to be inspected.
Identify the competent person who will take ownership of this task.
Identify the inspection form to be used and ensure that the criteria on the form is applicable to the inspection to be carried out and that it is understood by the person that is going to perform the inspection.
Make a decision whether the inspection will be done announced or unannounced.
In both cases inform the respective manager of the area/division of your intent.
Select a day and time for the inspection.
Make sure that the selected day and time is not during lunch, tea-break of shut-down but during a normal busy shift.
On the day of the inspection:
Confirm with the area manager that everything is going according to plan.
Identify possible resources that are needed (eg. PPE requirements, transportation, etc.)
Ensure you have your clipboard, inspection form, writeable pen and other requirements available.
Switch off your cell phone and ask your fellow colleagues and manager not to disturb you during the process unless it is an emergency.
Before you start walking through, sit in your office and mentally prepare your approach and the questions that you would like to ask.
When you are relaxed and ready, start working systematically through your inspection route – do not rush – take your time and do a quality inspection.
Write clearly on your form and give yourself memory joggers on the sheet to assist you later in recalling some of the facts.
Look at positive and negative factors.
Do not do fault-finding.
Remember: an inspection consist of documentation review, interviews and observation – make sure you have a balance in terms of these three information gathering techniques.
When you have completed your inspection, thank all the people that were involved.
Leave the area in a positive manner.
Go back to you office and finalize the content of the inspection report.
Report problem or high risk situations immediately to the respective supervisor or manager to prevent possible incidents.
Hand in your report to your next level of supervision.
Ensure that you form part of a committee who will sit on a regular basis to discuss these reports and make recommendations for continual improvement.
Give regular feedback to the employees on all issues (positive and negative).
Important tip: Your attitude and approach during the inspection will determine whether it will be a success or failure.
A typical approach towards interviewing an employee would be:
Good morning, my name is…
I am busy doing an inspection to assist the SHEQ management system with continual improvement opportunities.
You are a valuable part of this process and we would like to find out if we can make your job/task safer.
Do you mind if I ask you a few questions, please?
What are the hazards that you know of in your job?
Have you gone through induction training?
When was the last emergency evacuation drill performed?
Who is your management representative for SHEQ?
Has an incident occurred in your area over the past month?…etc…
I thank you for your honesty and for sharing this information with me.

If we want to be successful we must remember that: we must become the change we want to see – Mahatma Gandhi.
Contact Christel Fouche
Featured, Health & Safety, Uncategorized

Audit example with notes

go here

Monday, March 10, 2008

Effective QMS Auditing Master Class

Effective QMS Auditing Master Class aims to equip delegates with quality auditing skills and strategies to implement QMS to business sustainability.

Our international trainer, Aidan Madden is the Managing Director and Principal Consultant of He has 19 years of experience working in regulated pharmaceutical industries and has delivered training workshops to 29 companies and 918 delegates since setting up FivePharma. Some of his clients include Abbott Pharmaceuticals, Bayer, Pfizer, B Braun, Cardinal Health, Haupt Pharm, Tyco Healthcare, Schering Plough,

Dr. K. Sadasivan Pillai, the Associate Director of Quality Assurance for Orchid Research Laboratories Ltd will be presenting a case study on the 'AuditPpreparation" Process in Orchid research laboratories.

You and your organization will gain crucial insights into:

· Planning, conducting and reporting Internal Audits

· Planning an audit programme and contributing to audit external clients

· Applying risk analysis to assessing audit findings

· Summarising the key requirements of FDA CFR 211 and EU GMP requirements

· Interpreting requirements of QSR in the context of an audit

· Describing the role of quality audit in the maintenance and improvement of management systems

· Describing the roles and responsibilities of auditors and lead auditors

Planning and conducting an audit in accordance with ISO 19011 and demonstrating ability to plan and prepare effectively
Analysing and interpreting information in order to determine conformance with requirements, effectiveness, and areas for improvement
Reporting the audit, including writing valid, factual and value-adding audit reports

*A 30-minute examination will be conducted at the end of the training. Participants who successfully passes the examination will receive an official Certificate of Accomplishment from FivePharma and Certificates of Attendance form FivePharma and marcus evans.*

For the registration form, please use the following link:

If the link is inaccessible, please reply my mail, and I will reply as soon as possible.

To register, simply fill out the registration form with credit card details, attention it to Karyn Nair and fax it to +603 2723 6622.

Take advantage of the 10% Premier Plus discount and register 3 or more delegates.

Best Regards,

Karyn Nair
Marketing Executive

marcus evans

Telephone : +(603) 2723 6611

Fax : +(603) 2723 6622

Email :


Friday, October 19, 2007

auditing ISO 27001

You may please look for all mentioned below during internal audit.. in addition to Annex A controls..

Basic Checklist
List of assets (with owners, threats, controls and vulnerabilities) available?
Access controls defined? (Authorization forms)
Information labelling carried out?
Security Incidents monitored?
Security events monitored?
Backup integrity monitored?
Risk assessment methodology defined?
Risk assessment covers all the assets?
Risk assessment study documents available?
Additional Control Records maintained?
Test records maintained? (mainly for System admin)
SoA Prepared and complete?
Employee Training records available with respect to ISMS?
Internal audit Plan and Audit reports maintained?
Risk Mitigation plan available?
Competency Matrix available?
Training effectiveness records available?
Roles and Responsibilities defined?
Department specific procedures documented?
(mainly HR / Admin/ System admin / MR related)
BCP and management Process available?

Thursday, October 18, 2007

Audit standards

The Department of Employment and Industrial Relations has developed an audit program that employers can access that allows employers to evaluate their performance against ten defined elements. Details of this standard are available from the Tri-safe management systems audit program (PDF, 342 KB).

Self-insurance audit standard
The Department of Employment and Industrial Relations is responsible for the administration of the occupational health and safety performance requirements for current and prospective self-insurers. This role includes the accreditation of self-insurer auditors, coordination of audits with self-insurers and reporting of audit findings to Q-COMP.

Employers seeking a self-insurance licence from Q-COMP are required to have an assessment of occupational health and safety performance as part of licence requirements.

An element of this assessment process is a requirement for an OHS management systems audit. The standards that this audit is conducted against are detailed in the The Workers’ Compensation Self Insurers Performance Criteria and Guidelines.

Audits conducted for the purposes of self-insurance licence requirements are conducted by auditors accredited by the Department of Employment and Industrial Relations. Persons wishing to become accredited can apply to the Department of Employment and Industrial Relations after addressing the requirements set out in the Self Insurance Accreditation Criteria.
Last updated October 17, 2006


ISO 19011:2002 provides guidance on the principles of auditing, managing audit programmes, conducting quality management system audits and environmental management system audits, as well as guidance on the competence of quality and environmental management system auditors.
It is applicable to all organizations needing to conduct internal or external audits of quality and/or environmental management systems or to manage an audit programme.
The application of ISO 19011 to other types of audits is possible in principle provided that special consideration is paid to identifying the competence needed by the audit team members in such cases.
Revision information
Revises: ISO 10011-1:1990
Revises: ISO 10011-2:1991
Revises: ISO 10011-3:1991
Revises: ISO 14010:1996
Revises: ISO 14011:1996
Revises: ISO 14012:1996


Hazard specific audits

Hazard specific audits address particular issues such as confined space entry, or working at heights and involve the inspection and testing of current workplace control methods. This type of audit has a narrow focus and looks at the effectiveness of policies and procedures in dealing with specific hazards.

These audits differ from compliance audits in that the standards set by the organisation to address a risk of injury may exceed legislative requirements. Many organisations use suitably qualified external providers to undertake these types of audits especially when hazardous tasks are being undertaken.

Workplace Health and Safety Queensland inspectors may review specific hazards in order to monitor legislative compliance at a workplace.

The Workplace Health and Safety Act 1995 (PDF, 766 KB) requires that workplace health and safety officers (WHSO’s) conduct a hazard based assessment of the workplace using criteria approved by the Chief Executive of Workplace Health and Safety Queensland or criteria agreed to by the Workplace Health and Safety Committee at the workplace.

More on WHSO’s.
These assessments must be conducted at least once every twelve months, or at intervals agreed between the WHSO and the Health and Safety Committee. There are eight elements referred to under this criteria and includes a number of common workplace hazards-
Hazard identification, risk assessment and control
Work environment
Hazardous substances
Manual tasks
Information, instruction, training and supervision

An example of a hazard based assessment form (PDF, 144 KB) is provided for your convenience.
Last updated July 18, 2005



An occupational health and safety management systems audit has a wider scope, and although addressing hazards and risk controls, it also looks at organisational structures, planning activities, responsibilities, implemented procedures, review cycles and measurement and evaluation issues.
A basic occupational health and safety management system has some of the following characteristics:
Existence of a health and safety policy that is communicated to staff
Management commitment
Allocation of responsibilities and accountability for health and safety matters
Controls for suppliers, sub-contractors and purchasing
Health and safety consultation
Hazard identification, evaluation and control
Provision of information and training of staff
Incident recording, investigation, analysis and review
Measuring and evaluating workplace health and safety performance.


Audit Management

An audit is a systematic examination used to determine whether or not an object meets previously specified requirements, and is usually performed using question lists. The results of an audit are valuated and documented.

SAP PLM QM Audit Management helps you plan and process audits, monitor corrective and preventive actions that were determined during audits, and evaluate audit data according to different criteria.

The audit management solution is very flexible and allows you to perform any type of audit that you require, for example, quality audits (system audits, process audits, product audits, supplier audits), environmental audits, security audits (site security, function security, data security), or industrial safety audits. The solution can be applied to the needs of all relevant norms like QS9000 or the DIN ISO 9000 series.

It encourages integration of different audits, for example, in accordance with DIN ISO 19011. Since audits are usually performed outside the office, mobile options are essential in supporting effective audit processing. Collaboration between the auditor and the audited party is required when corrective or preventive actions are agreed on, and have to be monitored. The audited party may use an Internet or intranet-based access to the actions to report their completion.

The solutions suitability to processing a wide variety of audit usages meets the requirements of companies to unify different management systems in one integrated management system. This greatly reduces audit expenses. A HTML interface ensures that the functions of the audit management solution are accessible for everyone who has authorization, from any location, on the Internet or intranet. Moreover, you can directly attach documents and notes to the data objects used in audit management. Thus, the information on audits is available company-wide avoiding double work and leading to improvement of products, processes, and supplier relationships. The integration of the audit management solution with the data environment of provides access to a vast array of information from other areas.

If necessary, it is possible for you to use interfaces to tools such as Microsoft Project® for the project management of an extensive audit plan, and Microsoft Excel® for the handling of question lists. The multi-lingual nature of the user interface and of the audit information supports you when working with foreign partners. For each audit phase, you can specify the partners and communicate with them using the platform. Audit management provides a complete solution, which is easy-to-use and enables benchmarking and the evaluation of best practices inside and outside the company.


Wednesday, September 5, 2007

Auditing ISO 9001 QMS

The auditors will check compliance to ISO 9001 QMS requirements

The auditors will want to see:

at least 6 mandatory documented procedures
21 mandatory records (16 if design exemption is claimed and granted)
Apex Quality Manual containing as a minimum
Quality Plans
Work Instructions where required
Quality Data

At least 2 Internal Audits conducted
At least 2 management reviews conducted
Monitoring of Quality Objectives
Customer Satisfaction perception determination
Evidence of continual improvement

Answers to Questions posed by auditors
go here

Saturday, August 18, 2007

ISO 19011:2002

Guidelines for quality and/or environmental management systems auditing

ISO 19011:2002 provides guidance on the principles of auditing, managing audit programmes, conducting quality management system audits and environmental management system audits, as well as guidance on the competence of quality and environmental management system auditors.

It is applicable to all organizations needing to conduct internal or external audits of quality and/or environmental management systems or to manage an audit programme.

The application of ISO 19011 to other types of audits is possible in principle provided that special consideration is paid to identifying the competence needed by the audit team members in such cases.

Tuesday, July 17, 2007

Certification is Conformity Assessment, what is accreditation ?

ISO/IEC standard for "one-stop accreditation" to boost cross-border trade

A new International Standard aims to harmonize requirements worldwide for organizations that assess the competence of "conformity assessment" bodies.It will provide a global benchmark for "accreditations bodies" to ensure that they operate in a consistent, comparable and reliable manner worldwide, thereby providing confidence to purchasers and regulators and facilitating cross-border trade.

go here

Sunday, June 10, 2007

Auditing Body of Knowledge

Avail free downloads
Auditing Knowledge Bank
Good Audit Practices
ISO 14001 Audit Checklist Word Document

The other ISO 9001 Auditing Practices Group papers and presentations may be downloaded from the web sites:

Friday, March 9, 2007


QMS auditing topics

· The need for a 2-stage approach to auditing
· Measuring QMS effectiveness and improvements
· Identification of processes
· Understanding the process approach
· Determination of the “where appropriate” processes
· Auditing the “where appropriate” requirements
· Demonstrating conformity to the standard
· Linking an audit of a particular task, activity or process to the overall system
· Auditing continual improvement
· Auditing a QMS which has minimum documentation
· How to audit top management processes
· The role and value of the audit checklist
· Scope of ISO 9001:2000, Scope of Quality Management System and Defining Scope of Certification
· How to Add Value during the audit process
· Auditing competence and the effectiveness of actions taken
· Auditing Statutory and Regulatory requirements
· Auditing the Quality Policy and Quality Objectives
· Auditing ISO 9001, Clause 7.6 Control of monitoring and measuring devices
· Making effective use of ISO 19011
· Auditing Customer Feedback processes
· Documenting a Nonconformity
· Guidance for reviewing and closing nonconformities
· Auditing Internal Communications
· Auditing Preventive Action
· Auditing Service Organizations
· Third Party Auditor Impartiality and Conflict of Interest
· Auditing the Effectiveness of the Internal Audit
· Auditing Electronic Based Management Systems
· Auditing the Management of Resources
· Auditing Customer Communications

Feedback from users will be used by the ISO 9001 Auditing Practices Group to determine whether additional guidance documents should be developed, or if these current ones should be revised.
Comments on the papers or presentations can be sent to the following email address:
These papers and presentations may be downloaded from the web sites: