The Hindu Business Line : Peaks and troughs the economy had to endure

India's `first financial scandal' was in 1957, states Building India With Partnership, by Sharmila Kantha and Subhajyoti Ray, from Penguin Portfolio (www.penguinbooksindia.com). Hari Das Mundhra, the six companies that he owned, and the LIC were embroiled in the scandal.

Mundhra was the only Indian on the board of Jessop, and he had also `substantial holdings in Richardson and Cruddas.' He had siphoned off company resources, `while manipulating the shares.' What happened then? LIC bought the Mundhra shares for Rs 12.4 million `to avoid a collapse in the stock exchange.' The book states that it was Feroze Gandhi who raised the suspect nature of the clandestine deal in Parliament; thereafter, `a commission was set up to investigate the dealings.' And one reads more: "Justice M.C. Chagla placed the moral responsibility for the deal squarely on the Finance Minister, T. T. Krishnamachari, who resigned in the wake of the scandal." The damage to the companies was done, though.

In retrospect, that was one of the many troughs the economy has had to endure. "Indian industry has evolved and progressed in all environments. The Confederation of Indian Industry (CII) has displayed an indomitable spirit and fortitude throughout all travails and triumphs," notes the concluding chapter.

Useful chronicle of more than a century, through the eyes of the CII.

For a handle to the future

James Baldwin says, "Not everything that is faced can be changed, but nothing can be changed until it is faced." With this quote begins one of the chapters in Risk Issues and Crisis Management, by Michael Regester and Judy Larkin, from Kogan Page (www.vivagroupindia.com).

"We live in a world where corporate reputations are fragile and where crises seem to be occurring more and more," fears the foreword. "No matter how well organised and in control you may feel about your day-to-day tasks, extraneous events may suddenly place you and your colleagues in a vulnerable position," notes the preface. "How issues are handled can mean the difference between a crisis out of control and a proactive solution — between profit and loss," explains one of the chapters.

An issue is "an unsettled matter which is ready for decision," reads a definition of Chase and Jones. An emerging issue is "a condition or event, either internal or external to the organisation, that if it continues will have a significant effect on the functioning or performance of the organisation or on its future interests." Issues management is, therefore, about managing change. Essential read, for those looking for a handle to the future.

Tailpiece

"To know more about the mosquito repellent market... "

"You did research on mosquito bites?"

"Plus, we appointed an expert who understands the insect's lingo!"

http://BookPeek.blogspot.com

D. Murali