And for a Friday of a week wherein business, politics and economics was dominated by Adani, some thoughts….. some musings…..
As a Corporate Professional with almost 5 decades in management, I am happy to see the Indian Corporate sector and democracy, both showing increasing signs of maturity and global recognition. Large corporates are no longer about just profits and owners interests. The global economy today is hugely intertwined. Publicly listed companies must recognise that their existence is not merely to make profits. That’s the interest of just one stake holder – the owner/shareholder. In today’s world, for large corporates, sustainability is defined on how well they take care of ALL stake holders, which include employees, customers, vendors, Govts, the resources consumed and society at large. To me the Adani group episode has brought to focus; Corporate Governance, Transparency and the role of Independent Directors on the Boards of Indian Companies. The Adani group is well invested and are successfully managing massive infrastructure companies with huge asset base. Market capitalisation is a virtual factor. It’s also perception. Hopefully this episode will moderate the speed of diversification and improve highly desirable financial discipline on the Group and be a win-win for all.
United Nations SDGs ( Sustainability Development Goals) 16.5 is particularly on Governance. The stated objective is to substantially reduce corruption and bribery in all its forms. India is a signatory and has amended the company’s act, SEBI listing agreements and a host of other legislations, to meet the Global legal requirements. Notwithstanding the legal part, one must appreciate the spirit of sustainability practiced by individuals and Business Groups in India. My good friend Azim Premji is one such. The largest philanthropist; it’s rumored that he only travels economy class air travel. Include the TATA listed companies, Mahindra, L&T, Aditya Birla, Uday Kotak group, HDFC Group, TVS, Murugappa Group, Marico, MNCs in India, Levers, Siemens, BOSCH, BASF, the list is endless and happily increasing. Corporate Professionals today are well paid and also get stock options. Hence the best Professionals no longer will be dictated by some crony capitalist owners. Each professional must stand up for good governance and transparency.
India is at a cusp to take off from the fifth largest economy to be in top three. Let’s all support the honest growth of corporate India, the transparent way, the professional way, the SEEGOS way.