Engines of National Transformation
by Harichandan A. A.

The Hindu, Bangalore, Friday, August 17, 2001

Globally, corporate organisations are being asked to be more accountable, practicise self-policing and make financial transactions transparent and constitutional. They are expected to be partners in the economic and social transformation of nations.

Corporate directors then, must embrace radical thinking, aggressive competition and good corporate governance, says Dr Madhav Mehra, Chairman, World Quality Council.

He was speaking to corporate leaders here recently about his favourite idea - the need to revolutionise the role of corporate directors to make Indian corporate "engines of national transformation rather than mere economic entities."

"A corporate director has civic responsibility. The people who accept this responsibility, do it conscientiously and well, deserve our respect as they are serving a nation. But those who as directors are passive and view their role as mere advisers, are pliable and pleasant but do not insist on a real monitor's role, do small service to anyone and deserve little respect"-is what Chancellor William T. Allen, Corporation Jurist from US, says.

The views are as valid for corporate directors in India, says Dr Mehra. He admits he does not have all the answers. His persuasive skill and the goodwill he has earned through diplomatic perseverance are his strengths.

The right thing
Corporations are now being asked to do more than maintain bottomline profit. Indeed, with "public-private partnership" being the latest mantra of cash-starved government, businesses are expected to play role in social transformation of the country.

This being the case, such business leaders who dare to do the right thing, must be encouraged, Dr Mehra says. "If we tell people that it is all right to make mistakes, they too will come up with the ways of tackling those mistakes. If Thomas Allen Edison had been forced to give up after his initial failures to create the electric bulb, the ultimate phenomenal success would never have seen the light of day," he says.

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