“If India is to find its rightful place in the world, we have to think and act like Team India,” said Mr Injeti Srinivas, Secretary, Ministry of Corporate Affairs. Corporate India powers the growth of the Indian economy and a vibrant and strong corporate India is imperative to make the USD 10 trillion dream come true, he added.
He was speaking at a Session on Building Trust at the CII Annual Session in New Delhi today. The Theme of this year’s Annual Session is ‘India 5.0: India@75 and Beyond’.
However, corporate scandals in the last few years have raised issues of corporate governance. Building trust is the issue for governance, and trust is a cross-cutting issue in the internal and external environment, noted Mr Srinivas. While we have seen falling standards in corporate governance, about 70% of companies are compliant. He pointed to the steps being taken to bring in corrective measures such as the National Financing Reporting Authority and the Fiscal Stability Development Council. But there is no substitute for a trust-based system and technology should help make the processes transparent and smooth, he said.
Sharing his perspective on whether more regulation is required, Mr Uday Kotak, President Designate, CII and MD & CEO, Kotak Mahindra Bank Ltd, said trust needs very careful nurturing. In a corporate setting, the conflict between a fiduciary and owner is at the heart of the trust issue and the role of fiduciary is more important.
Speaking on how corporates can build trust with communities, Mr R Dinesh, Joint Managing Director, TV Sundaram Iyenger & Sons Pvt Ltd, shared that the perception and reality must be the same and trust begets trust.
Dr Ajit Mishra, Department of Economics, University of Bath mentioned that while there is a high-level of trust in technology, there is a strong need to focus on integrity, transparency and fairness to build trust. He was of the opinion that over-regulation adversely impacts trustworthiness, and that regulation should be forward looking.
Mr TV Narendran, CEO & MD, Tata Steel Ltd observed that there is a trust deficit currently between Government and corporates and civil society. Corporates must balance their and government’s roles and all must work together for building trust.
4 April 2019