The Hindu Business Line : Need for continuity of reforms stressed

THE President of the Employers' Federation of India, Mr R.K. Somany, has said that the economic reforms initiated by the previous Governments should be continued irrespective of the party that comes to power at the Centre.

Addressing the media here on Wednesday, Mr Somany said that the industry wanted political stability to implement its plans and for this, there is a need for continuity in the reforms process. He hoped that the reform process would continue to keep the India Inc moving.

Mr Somany was here in connection with the one-day seminar on `Corporate Social Responsibility' organised by the Cochin Chamber of Commerce and Industry in association with the Employers' Federation of India, Mumbai, and the Employers Federation of Southern India (EFSI), Chennai.

Stating that reforms were irreversible, he said competition had become severe in the market. The industry had to face several ups and downs. Sometimes unfair competition (arising out of economic policy decisions) forces the industry to close shop. The industry was not in favour of `hiring and firing'. Redundant workers are given appropriate training with a view to retaining them, he said.

Mr Somany felt that industrial relations in Kerala needed to be improved. Hartals and bandhs were giving a negative message to prospective investors, he added.

Earlier, speaking at the seminar, he listed out environment, community development and compliance with laws among various aspects of corporate social responsibility (CSR).

Mr V.B. Cheriyan, trade union leader, quoting a UNDP report, argued that the share of wealth owned by the rich across the world after globalisation had increased from 70 per cent to 80 per cent while the share owned by the poor was reduced from 2.4 per cent to 1.3 per cent. This meant that poverty was spreading. The cultural distinctions achieved by the humanity in the past were systematically being erased by globalisation, he said.

Production, distribution and consumption were parts of an entity and focus on one aspect would generate imbalance and lead to destruction, he added.

Mr P.C. Cyriac, former Secretary (Industries), Tamil Nadu, said that companies would be doing themselves a favour by executing CSR. He specifically mentioned the drug companies, which could reduce the price of life-saving drugs.