PM flays ethical deficit in India Inc

Singh said,'ethical and responsible behaviour needs to become the cornerstone of corporate behaviour'.

Amid charges for flouting environment laws by some influential business houses,Prime Minister Manmohan Singh said there was a perceived 8220;ethical deficit8221; among some corporates which need to follow fair means in their pursuit.

8220;I am sure,business leaders are aware that business practices of some corporate houses have recently come under intense public scrutiny for their perceived ethical deficit,8221; he said while addressing captains of industry at India Corporate Week 2010 function here.

Some leading industrial houses,mainly engaged in mining and real estate are facing charges of violating environmental laws,while a few others are under public eye for intensive lobbying to influence government policies.

Expressing concern over the way natural resources are being used by industry,Singh said,they need to be 8220;sensitive to the needs and aspiration of common man 8230; for their long term survival.8221;

The Prime Minister cautioned that in absence of adequate resettlement and rehabilitation of project displaced people,faith in industrialisation may erode.

8220;Our growth process must not suffer because of loss of confidence in industrialisation and development. We need policies and interventions that would minimise livelihood disruptions.8221;

He said increased employability of population through skill development must be central to corporate strategy.

Story continues below this ad

Singh said 8220;ethical and responsible behaviour needs to become the cornerstone of corporate behaviour,as indeed our national outlook8221;.

Recalling the words of the Father of Nation,he said,8221;Mahatma Gandhi repeatedly emphasised the importance of not only good ends but also the use of fair means to attain them. It is the large companies that have to set the pace in this regard. The rest of the corporate sector will quickly follow as a norm.8221;

The companies,he added,must adopt environment friendly measures and 8220;avoid taking shortcuts8221; which can adversely impact livelihood of the local populace.

The prominent industry leaders present at the function included CII President Hari S Bhartiya,Assocham President Dilip Modi,Ficci past president and Apollo Tyre chief Onkar S Kanwar and Bajaj Auto chairman and Rajya Sabha member Rahul Bajaj.