INVC NEWS
New Delhi,
The Vice President of India Shri M. Hamid Ansari has said that since independence, our country has made significant progress in most aspects of economy and society. India has emerged as the third largest economy in the world, in Purchasing Power Parity terms. Socio-economic indicators, such poverty, unemployment, inequality, health, education, housing, sanitation etc have shown considerable improvement, especially in last two decades. Addressing at a function organized by the “Indian Merchants’ Chamber” in Mumbai, Maharashtra today, he said that we have attained self-reliance in most agricultural products and are even exporting some of them. Our services sector is counted amongst the best in the world. Manufacturing has grown and diversified into hi-tech areas as well. India’s share in global trade and investment has been on the upward trend, albeit modestly. In these endeavours, the public and the private sector have been equal partners. Both have made valuable contributions to the national growth and development agenda.
He opined that the task, however, is by no means accomplished. We still have the dubious distinction of being home to the largest number of poor in the world. Inequality in social and economic terms is a stark reality. Unemployment is rampant. Hunger, malnutrition, disease, illiteracy and homelessness still afflict a large section of our vast population. Our Manufacturing capabilities and the Services sector need to grow, in terms of quantity and quality, if we are to match the levels of other developing countries, such as Brazil and China. Given the size of our economy, our share in global trade and investment also should be much higher.
The Vice President said that rapid growth produces inclusiveness through a larger expansion in total income and production which, directly raises living standards of a large section of our people by providing them with employment and other income enhancing activities. It also generates higher revenues, which help to finance critical programmes of inclusiveness, which either deliver benefits directly to the poor and the needy, or increase their ability to access employment and income opportunities generated by the growth process.
He said that 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’. As we pursue faster, more inclusive and sustainable growth for the country the government and the corporate sector both have critical roles to play in its realization.
The Vice President said that Businesses promote growth directly by increasing production and output. They help in inclusion by generating productive employment and creating wealth. Businesses are an integral part of society, and have a critical and active role to play in the sustenance and improvement of healthy environment, in fostering social inclusiveness and equity, and in upholding the essentials of ethical practices and good governance. This is commonly referred to as Corporate Social Responsibility, aptly defined by the World Bank as “the continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families as well as of the community and society at large”. CSR is thus understood as being the way through which a company achieves a balance of economic, environmental and social imperatives, sometimes called the Triple-Bottom-Line Approach, while at the same time addressing the expectations of shareholders and other stakeholders. This today has been recognized as bringing social, environmental and ethical responsibilities into the governance of businesses to ensure their own long term success, competitiveness and sustainability, besides contributing to the larger common good. It goes beyond charity and philanthropy.
He emphasized that there is a 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 concluded that no edifice is stable unless its foundations are strong. This holds good for our social edifice also. More resources and greater efforts need to be devoted to the weakest structures in our society for the social and educational development. 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.
