Real Account of GD: 'Business lobbying be made legal in India'

MBAUniverse.com brings to you a series of real account of GD, PI, WAT round at Top B School for admission in the session 2013-15.

This article describes yet another real account of GD round held for admission to one of the top B-schools. Name of the B-school is not disclosed for obvious reasons and the names of the candidates have been changed to protect their identity. The GD have been evaluated by the B school Admission Panel and have been provided marks and Feedback/comments on each individual candidate on the basis of their participation in the GD round.

Given below is the realistic account of Group Discussion with 8 candidates for admission to one of the top Business school.

GD topic - Business lobbying be made legal in India.

No. of candidates - 8

Time allotted- 20 minutes

Composition of the group- 3 girls, 5 boys

Candidates have scored between 88+ to 94+ percentile

Moderator - Good morning friends. The topic for todays Group Discussion is “Business lobbying be made legal in India”. You have one minute to think before starting the discussion. The observers will neither interfere nor participate in the discussion.

(After the pause of one minute)

Raman- (In a composed voice and moving his eyes straight towards the fellow group members) - Friends, I am Raman and would like to begin the discussion since time is short. Our country is passing through the fierce debates on Lobbying. The print and electronic media have been discussing this issue as it directly affects the lower income groups. Lobbying in fact are the attempts made by certain Corporate Groups to influence the direction of legislative policy of a country or state in such a manner so as to bring benefits to them and safeguard their interests. The objective can be achieved by influencing the legislators, members of Parliament and create a lobby to bring forth and get the legislation passed in favour of the Corporate Group. Lobbyist may be an individual or a group of individuals working for their employer or as an agent to them. Such people can be leaders of labour Unions, Corporate representatives, even legislators, bureaucrats, leading advocates exercising influence in legislative circles, or other private interest groups.

Sushma- (Interrupting) I think let us have your views instead of wasting our time on defining lobbying.

Raman – (Politely but firmly) – In fact, if we do not have clarity on the topic, we may not be able to express our views on it. Nevertheless, let me share my views.  India does not have any clear regulation for or against lobbying, especially when it comes by the name of lobbying. But it is not legal either. Lobbying has now become a well established service industry although, known by different names like –Public Relations, various established Associations, Federations, Confederations of Industry and commerce etc. function as lobbyists to get the policies framed in favour of Corporates. When Lobbying groups are working in India behind the scenes it seems better to give them a legal name. Government will at least come to know about them and their activities and will also get revenue through their registration fee etc.

Sushma – Friends, in my view allowing business lobbying will mean legalising an illegal activity. Lobbyists will give the corruption legal term. The politicians, influential people, will still garner their share from the lobbyists at the National cost.  Legislators-who are the law makers of the country and are responsible for framing laws that should bring all round development in the country- if influenced by the lobbyists, may get inclined towards lobbyist’s interests.

Sudarshan- I beg to differ, Sushma. Lobbying industry helps their clients in understanding the policy environment of the country.  They help them in identifying key players and their positions in the policy area. The key players could be political parties, bureaucrats, Central government, panchayat government etc. Lobbying industry has been placing its demand for clear and transparent laws in countries like India where no clarity on the issue is available. So it is high time that India should decide to make the lobbying legal by framing detailed and clear policy.  Many countries like USA, Germany other European countries have made the lobbying legal with specific conditions like quarterly disclosures on amount spent and the manner in which the same has been spent or so.  This provides vital information and transparency to lobbying practices. India could also adopt a certain model and make it legal. Lobbying would smoothen the process of working.

Udai - (Arrogantly) No, I disagree.  If the thefts, dacoities, smuggling   continue despite the presence of law enforcing agencies, it doesn’t mean that we should make them legal.  In my view Lobbying must be declared a criminal activity and if running in any form, should be stopped. Our country is already facing many problems, it should not be added to it. Everyone should agree with me.

(After this, everyone begins to speak not audible in the din. Raman watching this speaks in a loud, polite but firm voice)

Raman- (making 3rd entry with a smiling face)- Friends, we are short of time so let us continue. With the potential growth more and more companies will engage lobbyists who can directly interface with politicians and bureaucrats and push their agenda. Lobbying, whether legal or illegal, will continue to remain integral to Indian businesses and politics. Doing away with it or making it illegal is not an option.  It will be better for our legislators to make the Business Lobbying legal, of course with certain specific clauses to have transparency, at least to the extent the national interests are watched.

Rajan – ( With a nod) Oh yes, Raman you are right.  I also think on the same lines. The person or the company lobbying for certain favour cannot lobby till our government, legislative body- Parliament or the state legislature have not considered some path to move on. (Looks around in the hope of nod or some kind of applause from others)

Udai (Making second entry in a sarcastic tone)- Those who favour lobbying forget that the common man of India, who is otherwise reeling under the pressure of corruption and unemployment will be left penniless once lobbying is made legal. All the majors will lobby for their interests in the economy and will facilitate the entry riding the common man who hardly earns his bread and butter. Those who have more power and pelf will become greater lobbyist and will watch their interest while the common one will stand nowhere.  Lobbying in defence production and purchases might put national security at stake. Chopper bribery scandal is an eye opener in this regard. (Looks around proudly)
Aparajita – I agree with Udai. National interests will be cornered as the lobbyist will have one line motto of watching their own interest and will not at all be concerned with the country’s interest as they will not be from this country. (Smiles with a sigh)

Abhinav (in clear and sharp voice) – Friends, there is no doubt that business lobbying has become one of the most debatable issues in the country. Whenever India has gone for some big leap in policy framing that favoured Corporates in one or other way – the issue of lobbying has always come up. Whether it was ‘Enron’ – Dabhol power project in Maharashtra, Foreign Investment in corporate sector, big defence purchases, Infrastructure development and now Foreign Direct Investment in multi brand retail- all have been shadowed by the issue of lobbying.

Various Industry and commerce associations, bodies and some private firms such as Federation of Indian Chambers of Commerce and Industry (FICCI), Confederation of Indian Industry (CII), National Association of Software and Services Companies, Vaishnavi Corporate Communications owned by Niira Radia, DTA Associates managed by Deepak Talwar, are among the top lobby groups. Although they maintain that they are not lobby groups and work to exercise influence to engage with the government on the policy issues. When so much of lobbying is done by the registered and legal firms and companies in the guise of some or other name and it is a well known fact, making lobbying legal will add to the government’s income by levying good amount of fee and charges on the same. Where does the amount, being paid now on lobbying, go – is anybody’s guess. A transparent legislation will definitely solve this ambiguity and loss of income.  Think of the money, spent on lobbying in a single year, if made legal, at least a major part of it will find its way to treasury.  At present it forms a part of unaccounted money going into the pockets of politicians, bureaucrats and other influential lot, the cost of which will eventually be recovered from the common people in the country.  (The group keenly listens to him)

Krishna kumar (looking a little confused)- Well, Making lobbying legal will bring forth open debates and discussions on all the forums.  It will become possible to understand for one and all which option might be better. These lobbyists and representatives of their companies will openly participate in such debates with the pros and cons on the performance and product. Lobbying in fact brings more competitiveness but making lobbying legal will be harmful- the lobbying should not be made legal in India. India has lot of complexities and problems scattered over the entire country.  One part has different problem than that of other part. The lobbying company has no penetration of it.  

Moderator – (signals to stop) -  O.K. friends,  time for discussion round is over.  Thank you for active participation.

___________________________________

Expert feedback - The group overall actively participated.

1. Raman – Very well defined the topic in simple language. Placed good arguments in his three entries. Aptly replied the objection raised by Sushma. Top rated in the group and recommended

2. Sushma – Not a good listener. Has interrupting nature. Has some knowledge on the topic.  And made some valid points although not very good..- Not recommended

3. Sudarshan – Polite but firm. Has ability to present his ideas in a coherent manner. Good knowledge on the topic with facts. Although made single entry but that was good. Rated 3rd in the group.  Recommended if more than two are required from the group.

4. Udai – Seems a bully. Remains annoyed all the time. Has fact based knowledge and clear view on the topic, made two entries but lacks team spirit and doesn’t show leadership qualities. Not recommended.

5. Rajan – A follower with little knowledge. Tries to follow the footsteps of others. Not recommended.

6. Aparajita – Has nothing much to say on her own. Repeats some of Udai’s views. Feels much satisfied with whatever she had spoken. She may be good at writing but poor in presentation of views.  Not recommended

7. Abhinav – Although presented his views a little late but has clear understanding and has a balanced approach. Has good knowledge with facts.  The group was keenly listening to him. Rated 2nd recommended. 

8. Krishna Kumar - Appears quite confused. Does not have clarity of thought. It seems he had to speak as he was part of the group.  Not recommended.
   
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