Enterprises need to restore social trust

NEW DLEHI, INDIA: Planning Commission member Arun Maira has called for a need to rebuild the rapidly dwindling trust in enterprises.

On the sidelines of the launch of his book, Transforming Capitalism — Improving the World for Everyone, here on Friday, he said that business is being run to create a value and it could reflect the values and aspirations of the society.

Speaking at a panel discussion organised by the Confederation of Indian Industry (CII), he said we often ask ourselves what kind of world we would leave for our grandchildren. “To improve the world and the lives of everyone, what is needed is a partnership between businesses, civil society and the government.”

On the role of government, Maira said the system needs to be regulated and the process of the fair regulation is the key for transforming the world. Drawing attention to the issue of high prices charged by manufacturers across the sectors, he said it has resulted in the lack of trust in businesses.

He also highlighted the importance of inclusive growth and quality of governance while achieving economic growth.

Participating in the panel discussion, B. Muthuraman, president, CII, called for developing new metrices of measurement beyond the usual parameters of market capitalisation and profitability.

Stating that a new world order is emerging and everything cannot be left to the government, he said that businesses need to play a pro-active role as the primary purpose of businesses is to improve the lives of the people.

He suggested that regulations should be initiated by the government and if we want business corporations to behave better we should have behavioural regulations incentivising good behaviour.

Seeking usage of the term ‘free enterprise’ rather than capitalism, Adi Godrej, president designate, CII said that there is a need to add more to the business objectives than the original capitalist aspirations.