TIMES OF INDIA 24 January 2004
Bangalore: World Quality Council chairman Madhav Mehra, who is in Bangalore to attend the 14th World Congress on Total Quality, says the corporate quality movement must also encompass social responsibility to build sustainable businesses.
You have the theme 'Triple bottom line approaches for building corporations that last' for this year's Congress. Could you explain the theme?
A strong quality movement has emerged in India. But we believe quality alone may not be enough. Better quality could come at the expense of the environment. It could also increase disparities if the benefits corporates derive from quality are not shared widely. Across the world, there is a growing trend of people punishing companies that are not socially and environmentally responsible. It is, therefore, important for corporates to focus equally on three Ps - people, profits and planet. That is the focus of this year's Congress.
Don't you think it will be very difficult to convince companies to move away from their focus on quarterly profits?
Yes. But companies must realise that in the long run, it's not profits but the perception bf the company that determines market capitalization. It's the focus on the short term that leads to financial frauds like in Enron. Social good has become an important competitive differentiator. Among the young, environmental concerns are becoming very strong. Many people are willing to pay a higher price for your product if they think you are doing something to, say, protect biodiversity.
What do you make of corporate governance standards in India?
Following the global corporate Scandals, the US and UK passed legislations to check, corporate excesses.
In India, the Naresh Chandra committee recommendations have still not been accepted.
'People & planet are as important as profit'
BY SUJIT JOHN TIMES NEWS NETWORK'
TIMES OF INDIA 24 January 2004
Bangalore: World Quality Council chairman Madhav Mehra, who is in Bangalore to attend the 14th World Congress on Total Quality, says the corporate quality movement must also encompass social responsibility to build sustainable businesses.
You have the theme 'Triple bottom line approaches for building corporations that last' for this year's Congress. Could you explain the theme?
A strong quality movement has emerged in India. But we believe quality alone may not be enough. Better quality could come at the expense of the environment. It could also increase disparities if the benefits corporates derive from quality are not shared widely. Across the world, there is a growing trend of people punishing companies that are not socially and environmentally responsible. It is, therefore, important for corporates to focus equally on three Ps - people, profits and planet. That is the focus of this year's Congress.
Don't you think it will be very difficult to convince companies to move away from their focus on quarterly profits?
Yes. But companies must realise that in the long run, it's not profits but the perception bf the company that determines market capitalization. It's the focus on the short term that leads to financial frauds like in Enron. Social good has become an important competitive differentiator. Among the young, environmental concerns are becoming very strong. Many people are willing to pay a higher price for your product if they think you are doing something to, say, protect biodiversity.
What do you make of corporate governance standards in India?
Following the global corporate Scandals, the US and UK passed legislations to check, corporate excesses.
In India, the Naresh Chandra committee recommendations have still not been accepted.
Author : Dr Madhav Mehra
Dr Madhav Mehra is the President of World Council for Corporate Governance
| Join Dr Madhav Mehra on Facebook |
| Join Dr Madhav Mehra on Twitter |
