Companies Need to Look Beyond Shareholder Value And Make Sustainability a Core Driver of their Strategy Sachin Pilot
Corporate Affairs Minister Inaugurates ˜CSIA International Corporate Governance Conference™
Shri Sachin Pilot, Minister of Corporate Affairs, inaugurated the two-day 2nd CSIA (Corporate Secretaries International Association) International Corporate Governance Conference on the theme ˜Corporate Governance for Sustaining Prosperity and Posterity.™ Addressing the delegates from across the world, Shri Pilot said that each one of us is a trustee in sustaining Prosperity and Posterity. He said, As important actors in national and global economies, corporate enjoy and capitalize on natural, social, human and economic resources. They need to look beyond shareholder value and make sustainability a core driver of their strategy. This is important to embed entrepreneurship more firmly into social realities of the day, to ensure that they use these resources judiciously and without discounting prospects of the future generations. He said that corporations are expected to ˜build a better future™ not only for their shareholders but also for their customers, workers, business partners, community, nation and the wider world. Those with effective corporate governance based such values will have an added competitive advantage: attracting and retaining talent and generating positive sentiments in the marketplace. Sustainability of the environment, climate, social development and corporate economy all depend upon good corporate governance so much so that sustainable development has become a part and parcel of good corporate governance. Corporations who possess enormous economic and social prowess must take it on themselves to operate in such a manner that there is not only economic stability and progress but that these are inter-twined with environmental and social sustainability, said the Minister of Corporate Affairs.
Shri Pilot said that his Ministry has been working towards repositioning itself as a significant facilitator in creating a positive and healthy environment for doing business in India by offering an enlightened regulatory regime and efficient services so that the entrepreneurial energies are utilized in creating value for all stakeholders. He informed the Conference that in 2012, the Ministry had constituted a Committee to formulate a Policy Document on Corporate Governance under the Chairmanship of Shri Adi Godrej with the President ICSI as Member Secretary/ Convenor. The Committee has submitted its report which touches upon various areas of Corporate Governance. These include Board Composition & Diversity, Gender Diversity, Selection Process, onboarding and induction Process, Lead Independent Director, Continuing Board Training & Education, Board evaluation, succession planning, risk management, whistle-blowing, investor activism, etc. The report is being examined by the Ministry of Corporate Affairs, Shri Sachin Pilot said.
The Conference has been organized by the Institute of Company Secretaries of India (ICSI).