Centre for Corporate Governance Recommends Social & Environmental Reporting as part of Company Disclosures.

Social & environmental reporting shall become part of the company disclosures as per the guidelines on corporate governance issued by the  Centre for Corporate Governance. The Guidelines were released yesterday by Lord Swraj Paul at a Seminar on the Power of Collaborative Governance conducted by Dr. Madhav Mehra, President, World Council for Corporate Governance at Hotel Maurya Sheraton, New Delhi.

Lord Swraj Paul stated, “the corporation has a key role to play in providing employment in public and private sectors, goods and infrastructure. The efficiency and accountability of the corporation is now a matter of both private and public interest and governance, therefore, comes at the top of the international agenda.”

Addressing the Chairmen, CEOs and Directors from Navaratna PSU’s and top Indian companies, Dr. Mehra said “no government in the developing world has the economic resource to overcome the poverty and inequality inherited by them. If business, as a corporate entity, has to survive in this age of rising public aspirations, it is of utmost importance that it collaborates with the state and the civil society to engage in sustainable solutions for our economic, social, environmental problems.”

Dr. Mehra exhorted that companies adopt a triple bottom line approach and look after all 3 aspects - profits, people and planet. He added, that “globalization to be effective, has to work for everyone.” He asked , “in the fiercely competitive market-place when corporates are  scouting to employ only the top 1% highest scorers on competitiveness and innovativeness who will take care of the balance 99%?”.
He said, that “the widening gap between winners and losers was the biggest threat to the security of the business as knowledge society breeds non state actors with awesome power. Corporations therefore, had to take a centre-stage role in building proactive strategies in taking social measures that bridge this gap between winners and losers.”