Make ‘growth with equity’ the motto of business – Vice President

Mumbai,
1112
Vice President Mohammad Hamid Ansari today urged the captains of Indian industry to embrace the concept of ‘growth with equity’ as part of their Corporate Social Responsibility motto. “Empirical evidence shows that growth without equity is not sustainable in the long run. On the other hand, desired levels of equity or inclusion cannot be attained without rapid and sustained growth. Hence the solution is not in ‘either-or’ but in ‘both’” he said. Shri Ansari was addressing a Financial Conclave organized by the Indian Merchants’ Chamber in Mumbai.

Vice President said businesses promote growth directly by increasing production and output and they help in inclusion by generating productive employment and creating wealth. He said the Companies Act 2013 has brought the idea of CSR to the forefront by making it mandatory for certain class of enterprises. According to the Indian Institute of Corporate Affairs, a minimum of 6,000 Indian companies are required to undertake CSR projects under its provisions. Some estimates indicate that CSR commitments from companies can amount to as much as Rs. 20,000 crores.

Shri Ansari said there was greater potential for CSR efforts from the business community. “The answer however does not lie in enacting new laws to make CSR mandatory for all. It has a greater chance of success through voluntary commitments by all able enterprises, in private or public sector. This would be a win-win proposition for the businesses and the society in which they exist and flourish” he said.

Vice President observed that CSR in India has traditionally been seen as a philanthropic activity. “Over the years, it has evolved from institution building to community development through educational, cultural or research projects. It now needs to move forward from community development to becoming more strategic in nature by getting linked with business” he added.

Shri Ansari called for allocation of more resources for uplift of weakest segments of our society. “In allocation of CSR resources, the needs of the poorest and the least socially developed segments should be appropriately prioritized. This will ensure greater social harmony so essential for national prosperity” he observed . Vice President said our social edifice will not be stable unless its foundations were strong. He said our commitment to the basic tenets of our Constitution must be reinforced and institutions of state strengthened in order to preserve our unity in diversity.

Vice President recalled the role played by the Indian Merchants’ Chamber in promoting the Swadeshi movement during India’s struggle for independence. He said “I believe that Mahatma Gandhi was associated with the Chamber as an Honorary Member; a truly rare honour for any institution.”

The 108 year old Indian Merchants Chamber honoured six wealth and value creators from the private and public sector for their contribution towards boosting manufacturing growth, generating employment and skilling people and tax compliance. The awardees were selected by a Jury headed by Dr. Ajit Ranade, Chief Economist, Aditya Birla Group.

Maharashtra Governor Shri C Vidyasagar Rao, Chief Minister Shri Devendra Fadnavis were also present

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