‘Businesses should be about human well-being, not just profits’

Our Bureau Businesses need a “larger purpose” for existing than just profits, said Anu Aga, former chairman, Thermax.

Saying “the reason for businesses to exist is profits, is like saying the purpose of life is breathing,” she said that businesses should be about human well being. “Profit should not just be about figures but values,” she said at the KS Narayanan Oration, 2018. The Founder of the Sanmar Group was instrumental in the promotion of a range of enterprises such as Chemplast Sanmar and Sanmar Shipping.

Dwelling on the topic ‘Doing business in India today — Does it call for compromises?’ she said typically industries where government intervention is strong are among the most corrupt such as sugar and mining. Unless there is a “drastic clean up” nothing can be achieved, she said.

But, in general, breaking the politics-business nexus will help. This would call for total transparency in political party funding, which a few years back all parties had opposed unanimously.

Companies, too, need to follow a moral code. She recalled that a few years back the CII had asked its members to sign a boy-scout oath. “But creating a façade of honesty is as bad, as the mask becomes the face,” she said.

Together, to stand

While harassment and speed money to get routine work done are difficult to address, industries can get together to stand against bribery, pollution and tax-related corruption. Industry bodies such as CII and Assocham have to work with local governments to address these issues, she felt.

Thermax has concentrated on globalising operations with nearly 40 per cent of its businesses coming from international operations. More than half its business is from repeat orders, as there are enough business houses keen to adopt transparent policies, she said.

Uday Kotak, Founder and CEO, Kotak Mahindra Bank, recalled that from the initial days in business he had emphasised transparency in terms of business to the customer and business partners.

Citing the Ramayana and the Mahabaratha , he said, ideally his goal will be to emulate Rama, in letter and spirit. If needed, it is all right to be like Krishna, right in spirit, maybe flexible in letter. But it will never do to be a Duryodhana, wrong in spirit, or a Raavana, who was wrong on both counts.

Responding to a question on private sector corruption, he acknowledged that the “private sector had looted the banking segment. A majority of the losses of banks are from lending to big businesses.” Five decades back banks had been nationalised because they had only supported businesses but now the situation is not much different, he regretted.

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