Press Information Bureau

Government of India

Ministry of Corporate Affairs

12-August-2011 17:13 IST

Corporate Endeavours have to be Consonant with the Demands of Eco System and the Expectations of Indian Democracy-Dr. M. Veerappa Moily

Union Corporate Affairs Minister Dr. M. Veerappa Moily 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 a Corporate Governance Conclave organised by the Institute of Company Secretaries of India ( ICSI) in New Delhi today 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.

Dr. Moily said his ministry has been working towards repositioning itself as a significant facilitator in creating a positive and healthy environment for doing business in India by offering an enlightened regulatory regime and efficient services so that the entrepreneurial energies are utilized in creating value for the stakeholders. The Ministry has taken number of creative initiatives on legislative, regulatory, service delivery and capacity building sides. To mention a few, the revamping of Company Law, introduction of limited liability partnerships under a new law, efforts to converge with International Financial Reporting Standards, XBRL, Go Greeninitiatives, widespread investor education, Easy Exit Scheme, 2011 are worthwhile.

The minister also spoke of the Recently released National Voluntary Guidelines on Social, Environmental and Economic responsibilities of Business mainstreaming the concept of Business Responsibilities by the MCA . 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.” These guidelines have been formulated keeping in view the diverse sectors within which businesses operate, as well as the wide variety of business organizations that exist in India today – from the small and medium enterprises to large corporate organizations, Dr. Moily added.

The One day Conclave organised by Institute of Company Secretaries of India ( ICSI) was on the theme “Integrating Sustainability into Corporate DNA’ had eminent speakers including Chief Minister of Delhi, Smt. Sheila Dikshit, Shri Arun Maira Member, Planning Commission of India, Dr. JJ Irani, Former Director Tata Sons Ltd, Shri Nesar Ahmed, Vice President ,ICSI and Shri N.K. Jain, Seretary and CEO, ICSI.

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Responsible business principles guide corporate governance, promoting sustainability and stakeholder accountability under new national voluntary guidelines. The Ministry of Corporate Affairs advocates corporate governance aligned with environmental sustainability and stakeholder expectations, assigning Company Secretaries a central role in ensuring accountability, transparency and reliable investor information. Policy measures include company law reform, a limited liability partnership regime, convergence with international reporting standards and XBRL, Go Green initiatives, investor education and an Easy Exit Scheme. The Ministry's publication of National Voluntary Guidelines shifts focus from CSR to a broader Responsible Business model, directing firms to integrate social, environmental and economic responsibilities into corporate governance.