Good governance must think of long-term benefit"

The Hindu, Business Line, Bangalore, Jan. 3, 2002

GOOD governance should pre-suppose a long-term and sustained benefit to the society at large through collaborative efforts, rather than focusing on short-term gains of enhanced value to the shareholders and efficient management of entities.

Stressing this theme, speakers at a seminar held on Thursday said that business, stakeholders and civil society should work towards the triple bottom-line of profits distributed equitably among people, who in turn should contribute to protecting the environment. Only by this reckoning will corporate governance have some value.

This seminar was inaugurated by the Karnataka Governor Ms Ramadevi, and addressed by the Chief Justice of Supreme Court, Mr. M.N. Venkatachaliah.

Others who spoke include Mr K. Jairaj, Vice-Chairman and Managing Director, Karnataka State Road, Transport Corporation. Dr. M.R. Rao, Director IIM, Bangalore, Dr. Madhav Mehra, President of World Council for Corporate Governance, and Mr. V.V.K. Mani, Regional Manager, The Hindu.

Mr. Venkatachaliah said that the receding role of State as a welfare instrument was an issue that needed to be addressed to relocate the responsibility of social obligations.

"Globalization has not brought any marked change in the redistribution of wealth as can be seen from the fact the income value of the top 20 percent kept increasing even now.