‘Socially-responsible corporates stand to gain'

Amidst growing worries about the economic slowdown, it is better for companies to pay attention to their social responsibility.

This was among the several suggestions from experts at a plenary session on corporate global citizenship at the Confederation of Indian Industry's Partnership Summit 2012 in Hyderabad on Friday.

“Participation in corporate good citizenship is becoming an entry ticket to many countries for companies,” Mr Richard Heald, Chief Executive Officer, UK-India Business Council said.

Mr Amin Hashwani, President, Pakistan-India CEOs' Business Forum, said a drastic change in mindset was needed to align corporate interests, societal needs and sustainable growth.

According to Mr K. Venugopal, Director, Kasturi and Sons Ltd, the existing behavioural patterns of multinational companies as well as domestic firms were not in harmony with the concept of corporate global citizenship.

While multinationals were securing the best incentives from the host State such as land allotment at cheaper rates, corporate India has been seeking tax giveaways.

Tax giveaways alone were to the tune of Rs 88,000 crore in the last budget.

“Please don't ask for tax breaks. This money can be used to lift people out of poverty,” Mr Venugopal said.

Mr Ravi Chaudhry, Chairman, CeNext Consulting and Investment Ltd, said custodians of corporate governance were facing loss of trust.

“A company that only makes money will be considered poor,” he said.

Mr Ajit Rangnekar, Dean Indian School of Business, said compliance to legal, ethical and moral norms besides societal obligations would pay off well for companies in the long run.

To make businesses socially profitable and economically sustainable, corporates should work on their own besides partnering with Government and other agencies, Mr Rajive Kaul, Chairman, Nicco Corporation Ltd said.

>nagsridhu@thehindu.co.in

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