Kolkata – Minister for Corporate Affairs, Shri Salman Khurshid, said that Corporate Social Responsibility (CSR) is no longer charity or philanthropy; instead it should be imbibed in the corporate culture that leads to responsible business. He was inaugurating the 38th National Convention of Company Secretaries in Kolkata.
He emphasized the role of company secretaries in the companies. Referring that corporate are the cutting edge to economic growth, he spoke about the importance of corporate democracy, industrial democracy, stakeholder dialogue with the board, etc. He referred to company secretaries as centre point in not only advising and guiding the Boards of companies but also cautioning them against any mis-governance.
Shri Khurshid said the injury to the company is an injury to the entire system and quoted the examples of Satyam Scam and Bhopal Gas Tragedy. The attitude and culture towards inclusive growth has to be inculcated and nurtured in all corporate, emphasized the Minister.
Shri Salman Khurshid welcomed the recommendations of Parliamentary Standing Committee on The Companies Bill, 2009, which covers various aspects including secretarial audit, rotation of auditors, role of independent directors, etc.
Addressing the 38th National Convention of Company Secretaries, Shri R. Bandyopadhyay, Secretary, Ministry of Corporate Affairs, said that his Ministry has got special attachment towards the company secretary profession. The upliftment of ‘Aam Admi’ is crucial for economic growth and the entire Ministry is working towards this direction, he stated.
Referring to the strength of the Indian economy, Mr. Bandyopadhyay said the economic recession of 2008 had not made a major impact on Indian economy and the country was still able to achieve 6.5% Gross Domestic Product (GDP) growth rate. Probably, in one or two years, India may achieve 10% GDP growth rate also. But the challenge is the development of 500 million people in the country who do not have access to basic needs.
In this context, he emphasized that CSR should be inbuilt in the culture of the company. “Equality of growth process and equitable dispersal of resources is crucial for inclusive growth,” reiterated Mr. Bandyopadhyay, emphasizing that the professionals being the eyes and ears of the Ministry, should ensure compliance of law in true letter and spirit.
Shri Vinayak S. Khanvalkar, President, The Institute of Company Secretaries of India (ICSI), said that the business leaders are advised by professionals like company secretaries on various business issues such as corporate strategy, governance, disclosures, policy decisions, etc. As the governance and sustainability initiatives are baseline of inclusive growth, the roles of the company secretary in this respect have been substantially raised. He spoke about various ICSI Initiatives for members, students, etc.
Earlier, in his key note address, Mr. H. M. Bangur, Managing Director of Shree Cement Ltd., said that the fundamental philosophy of the businesses is to serve the society. He said that the Indian corporate sector with its present focus on inclusive growth is continually broadening the scope of its activities with corporate social responsibility, in order to address the long term needs of the society.
Source: PIB Press Release dated September 3, 2010.
