(MENAFN- KNN India) Today's companies need to balance needs, expectations and aspirations of all stakeholders. They should also have a mechanism by which if there is a tie between the expectations of one group over the other, there should be rules that ensure that a tie breaker is done in a proper manner, said Resident Director, Tata Group, Bharat Waklu.
If that is not done, then the enterprise will again morph into having focus on the expectations of only one predominant group such as the owners or the most vocal group and so on, he warned.
In conversation with Responsible Business India, he revealed his take on the concept of business responsibility, explaining how businesses have evolved over the centuries in the way they function.
In the early days, according to him, the primary focus for any business enterprise was to ensure that its shareholder, owner or investor got the returns they expected. They designed their policies and the way they functioned keeping that in mind, and in doing so did a lot of good for their owner/investor but not for the community or nation.
ìIt is no longer possible for an enterprise to be concerned about just one group of people, like the owners; they should balance expectations of all stakeholders,î he said.
In his opinion every company should make conscious efforts to balance the social, environmental and economic requirements of different stakeholders that are impacted by the enterprise. ìThat is the kind of focus that every company should have from now on. The luxury of focusing on shareholders or investors is gone.î
Significantly, he pointed out that we are living in a digital age where everyone figures out what a company is not doing right. ìIf they find out that a company is not meeting the requirements of one group of stakeholders, with as much zeal or commitment, as it does its owners, the company is likely to be penalised in a number of ways.î
Waklu headed the team that drafted the National Voluntary Guidelines on the ìSocial, Environmental and Economic Responsibilities of the Business.î
On the genesis of the report, he said that the government over the past 8-10 years has become conscious of the fact that businesses need to do more, so that the society does not look at businesses in an adversarial fashion.
Although many companies play a legitimate role in improving quality of life by manufacturing products, goods and services, innovations in medicine, mobility, etc, businesses should be driven for beneficial change in society by doing more, spending more money; so that they are not regarded as untrustworthy, he said.
'Mind Your Business' is a new series of interviews that brings new insights from a wide range of stakeholders including industry leaders, academicians, thinkers, sustainability experts and practitioners by Responsible Business India.
Responsible Business India is a platform that encourages enterprises to adopt sustainable business practices, empowers them with knowledge and resources, and contributes towards building an enabling ecosystem always striving to push the envelope further. (KNN/ES)
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