Disparities have grown significantly: Sunil Mittal

Philanthropy helps companies to be viewed favourably by the consumers, says Mittal

With populism seen rising across the world, top Indian industrialist Sunil Mittal on Tuesday said disparities have increased significantly in the last decade and voters are feeling it.

He also said that philanthropy helps companies to be viewed favourably by the consumers.

Speaking at a session on future of big businesses at the WEF Annual Meeting 2017 here, the Bharti group chairman said, "disparities have increased in the last 10 years, and the people who feel that are the voters".

He said the world is looking at a jobless growth today.

According to him, being a philanthropic business is a "matter of heart" but it also means consumers view you more favourably.

Rules in India mandate that companies need to spend 2 per cent of profit on Corporate Social Responsibility (CSR), he said.

Certain class of profitable companies in India are required to shell out at least 2 per cent of their three-year annual average net profit towards CSR activities.

In the same session, financial services major Credit Suisse's chief Tidjane Thiam said the biggest risk in running the businesses is to lose sight of what society wants.

Brexit and Donald Trump's victory in the US have generated a populist trend where big business is in the front line, WPP's Sir Martin Sorrell said.

Industry leaders also discussed that fewer than 10 per cent of the world's public companies account for 80 per cent of all profits and what does operating at this scale mean for competition, collaboration and innovation.