CSR in future will be known as ‘Corporate Sustainable Responsibility'
How do you see the framework of corporate governance shaping in the next orbit?
Corporate Governance is certainly relevant today and increasingly so. Any successful company will need to be governed well not only in terms of administration but also business ethics and sustainability by following certain guidelines, systems and procedures. Practice of corporate governance is nothing new in India where many businesses, which are generations old have been able to survive specifically because of strong governance ethics. At the same time, I also maintain that the framework of guidelines shouldn’t get to situations that are unnecessarily stringent to follow. That is to say that there should be no policing done in the name of corporate governance; what is the need for competent managers then? The basic framework of corporate governance is to provide a statute of fair practices to be followed by companies. Its application should rest with companies and its managers, or else it can hamper organizational growth.
How can an inclusive growth of the human capital, stakeholders, organization, community and society be ensured in the next orbit?
Inclusive growth will happen only with economic development, that is, through better connectivity, sound and robust infrastructure, development of rural markets, et al. Human capital, community, society and other stakeholders are all inter-related. And any sensible management knows that it has to be accountable to the society at large. If the company will consider people of the society while crafting business strategies, then it will get support from the society in implementing its business strategies. Going forward, companies must focus on sustainable livelihood. CSR is no more about opening schools, hospitals, and townships for society. Companies will have to find means and ways to integrate themselves with the social fabric of the society and contribute largely to the livelihood of people. In a way, CSR in future will be known as ‘Corporate Sustainable Responsibility’.
In your view, how can young entrepreneurs sustain corporate governance and not jeopardize with their ethics in their quest to succeed?
There are two ways to look at it. One is the natural evolution of any organization. As the business grows and the company becomes an organization, basic elements of organizational structure fall into place and rules and regulations are formed without which no company or an organization can succeed. The second aspect is the basic value systems which lay the foundation of any new company. This is a pre-requisite for sustainable success.