Dear editor,

I read an Aug. 18 op-ed article, “Is capitalism in coma?” with great conviction to draw policy implications from the message of President Lee Myung-bak with a paradigm shift in the economy of South Korea, which shares its independence day of Aug. 15 with us in India.

The term “ethical capitalism” is not new but is simply old wine in a new bottle. Bill Gates has been using the term “creative capitalism” to combine capitalism with corporate social responsibility (CSR), which is practically the new explanation of the “trusteeship” of Mahatma Gandhi. Those who own money need to behave like trustees holding their riches on behalf of the poor. It may be said that trusteeship is legal fiction.

But if people meditate over it constantly and try to act up to it, then life on Earth would be governed far more by love than it is at present. Absolute trusteeship is an abstraction like Euclid’s definition of a point, and is equally unattainable. But if we strive for it, we shall be able to go further in realizing state of equality than by any other method.

I am in agreement with the writer on giving priority to the manufacturing sector over and above the service sector, as most research studies reveal that employment elasticity is highest in the manufacturing sector in countries like India.

It should no longer be ignored in South Korea in the name of cheap Chinese labor ― the reason Seoul is full of “Made in China” products, as keenly observed by me during my stay in 2010-11 as professor of Indian economics at Hankuk University of Foreign Studies.

There is nothing wrong with healthy profits. However, the relentless, unceasing drive for maximum profits creates a number of ethical problems. Sound business ethics conflicts with profit maximization since profit maximization can harm a number of stakeholders.

Maximizing profits can be done by minimizing tax payments. There is nothing wrong, of course, with minimizing taxes. Except, that ethically challenged executives are not contributing to the countries that allow them to make their money.

We need to be thoughtful to ask whether it is ethical for individuals or businesses not to pay their fair share of taxes. Greed seems inherent within capitalism. Greed, not balanced by generosity or temperance, creates strong motivation to harm individuals, stakeholder groups, the corporation and even entire societies. There is a strong case for increasing propensity to save, which is possible by reducing propensity to consume in the economies of Korea and India.