The Confederation of Indian Industry (CII) made a strong appeal to industry members to sign the Model Code of Conduct for Ethical Business Practices.
“The Code contains the basic principles of doing business ethically. CII strongly believes ethical business practices is a journey in which voluntary adoption of this simplified code is an initial step,” said Malay Banerjee, Chairman, CII ER Governance Task Force, at the Seminar on Corporate Governance, Business Ethics & Competition Law: Emerging Trends, on Friday morning.
“It’s a matter of choice – either we regulate ourselves, or we get regulated, Banerjee said. “Intent, strong leadership and self-motivation are critical to building an ethical and profitable corporation,” added the CII ER Governance Task Force Chairman.
Banerjee, who is also the Managing Director of Linde India Ltd, cited a CII analysis to explain the business rationale, saying the companies which have demonstrated compliance as a core principle have seen their revenues go up by 17 per cent, profits 14 per cent, customer satisfaction 18 per cent, higher customer retention 17 per cent. And crucially, there is 50 per cent less spent on compliance, he said. “The Competition Act 2002 (as amended) follows the philosophy of modern competition laws and aims to foster competition and protect Indian markets against anti-competitive practices,” Mr Banerjee said.
Jyoti Jindgar, Adviser, Competition Commission of India, Union Ministry of Corporate Affairs, explained why and how non-compliance of completion law may pose serious risks to businesses, boards of directors and those held guilty. Heavy penalties, high costs of litigation, damages payable to aggrieved parties are some of the prices an enterprise will end up paying by not complying, she said.
Vivekananda Mohanty, Registrar of Companies (Kolkata), Union Ministry of Corporate Affairs, stressed the need for self-regulation saying the Government bring in law after law, but India in its pursuit to become a global leader needs “heroes and examples” in the management of corporate bodies. In this era of globalisation, corporates must follow best international practices to earn trust from stakeholders, which will in turn go a long way in boosting its image and business, he remarked.