PM concerned over ethical deficit among sections of India Inc

Prime Minister Manmohan Singh today said there was a perceived "ethical deficit" among some corporates which need to follow fair means in their pursuit.

"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," 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 "sensitive to the needs and aspiration of common man ... For their long term survival."

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

"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."

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

Singh said "ethical and responsible behaviour needs to become the cornerstone of corporate behaviour, as indeed our national outlook".

Recalling the words of the Father of Nation, he said, "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."

The companies, he added, must adopt environment friendly measures and "avoid taking shortcuts" 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.