CHIEF OF BUSINESS BUREAU                                                                                                                               August 16, 2011

PRESS RELEASE

ICSI  CORPORATE GOVERNANCE CONCLAVE

on

“Integrating Sustainability into Corporate DNA”

Dr. M. Veerappa Moily , Hon’ble Union Minister for Corporate Affairs has thrust upon a Corporate culture that must be familiar to the universally accepted values of good governance – accountability, transparency, responsibility and responsiveness to stakeholders.

Inaugurating the  Corporate Governance Conclave organised by the Institute of Company Secretaries of India ( ICSI) in New Delhi , Dr. Moily said, ”ICSI is playing a pivotal role in promoting good governance among the corporates. As specialist in corporate governance, Company Secretaries need to continuously own the responsibility to ensure that the corporate sector creates a governance culture that is able to generate wealth in a sustainable, ethical and socially beneficial manner and fulfills its obligation to all the stakeholders. Corporate laws, corporate processes, corporate procedures, corporate regulatory framework are all core domain of Company Secretaries. Investors and shareholders look upon them for quality of information, which ensures market discipline and foster confidence of various stakeholders”.

“The corporate endeavours have to be consonant with the demands of eco system and the expectations of Indian democracy. The economic reforms of the last two decades have opened up many new opportunities. But just as over bearing controls stifle initiative; dogmatic adherence to extreme models of non-regulation can also be disruptive to sustainable growth,” He added.

Dr. Moily also informed that, “Recently MCA released the National Voluntary Guidelines on Social, Environmental and Economic responsibilities of Business mainstreaming the concept of Business Responsibilities. The new guidelines build upon the Corporate Social Responsibility Voluntary Guidelines released in 2009, reflect a conscious shift from what is generally termed as CSR to a more encompassing concept of “Responsible Business.”.

Smt. Sheila Dikshit, HON’BLE CHIEF MINISTER OF DELHI in her Key Note Address, complimented ICSI  for choosing the appropriate  theme “Integrating Sustainability into Corporate DNA” for discussion because in present times there is a greater understanding that corporate strategy can be crafted to encompass a larger picture that not only enhances competitiveness but also ensures responsible and sustainable growth ..She strongly emphasized that alternative sources of energy should be utilized for sustainable future.

She also informed about the plantation drive by Delhi Government and said that “ the Plantation drive in the capital  pledges to plant one million saplings across the Capital thereby providing more green cover to the city. The target is to bring 33% of the city under green cover” she said.

Shri. Arun Maira, Member, Planning Commission  in his  address at the Corporate Governance Conclave said that the creation of shareholder value is possible when business is run in an ethical manner that will enable the business to win the trust of the business holders. Speaking  on Corporate Social Responsibility,  he said that it is more important to know how profits are earned by the companies  and later how such profits   should be  spent.   He said that CSR means doing good to the people. 

In his special address on good governance Dr. J.J. Irani, Former Director, Tata Sons Ltd., said that  good governance cannot be  mandated, it should flow from the Company within  and be integrated with corporate  culture.He also said that “Company Secretaries are the legal centres and they have to discharge onerous duties to ensure the implementation of good governance. Speaking on Independent Directors, Dr. Irani said that good quality professionals on the Companies in the Board can sway the decision of the Board and could be the  guardian  of minority shareholders”. Business by nature needs to earn profit but  that profit has to be  earned by following the guidelines .  It is here where the question of sustainability steps in, he added.

Earlier Shri. Nesar Ahmad , Vice-President, The ICSI, in his theme address urged the Government to take steps to introduce the Companies Bill in this monsoon session of the Parliament. Also While introducing the Theme of the Corporate Governance Conclave “Integrating Sustainability into Corporate DNA he said that, “Corporate sustainability can be viewed as a new and evolving corporate management paradigm. While corporate sustainability recognizes that corporate growth and profitability are important, it also requires the corporations to pursue societal goals, specifically those relating to sustainable development.

Shri Sudhir Babu C , Council Member, the ICSI while addressing the august gathering expressed his views and said that,”ICSI is committed to promoting good corporate governance and has played a pivotal role in creating awareness on various issues impinging upon corporate governance ..

Shri. N.K Jain, Secretary & CEO, The ICSI in his concluding remarks, said that the idea of this ICSI Corporate Governance Week was conceived with a lot of enthusiasm and the belief that this would definitely spearhead a movement of good corporate governance practices. Further, Shri. N.K Jain, Secretary & CEO said that, “there is a need to mainstream sustainable growth in the social fabric and this can be done by creating awareness, and embedding sustainability in the corporate culture and this should flow from the top within the corporate .Corporate strategies should be developed with an eye on the sustainability.                             

Dr. Amita Ahuja
Senior Director
(Public Relations & Corporate Communication)
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