Manwani on Brexit:Rise in nationalism,retreat of globalisation

Brexit is a reminder that there is a rising tide of nationalism and a retreat of globalisation, HUL Chairman Harish Manwani today said while stressing upon the need for MNCs to "win the hearts and minds" of local communities.
Addressing shareholders at the company's annual general meeting here, Manwani said societal trust in business is eroding throughout the world.
"The outcome of the recent 'Brexit' referendum is a reminder that there is a rising tide of nationalism and a retreat of globalisation," Manwani said.
In that context, he said, it is even more important for companies to not just be seen as responsible international citizens but also be perceived as serving the local communities.

Business is and must be a force for social good and companies must strive to win the hearts and minds of the local communities in which they operate, he added.
"Above all, to be successful in a world where societal trust in business is eroding, global companies must adopt the model of responsible growth and go beyond mere compliance to laws and regulations," he said.

Britain voted last week to exit from the European Union after 43 years as the 'Brexit' camp defeated 'Remain' in a down-to-wire referendum with far reaching implications for the world.
Manwani also pointed out that trends are gaining global scale and significance that consumers are becoming more rooted in their local cultures and identities.

"For example, the digitally aware Indian consumers demand the best products and services from across the world but at the same time, are more boldly rediscovering and celebrating local customs, tastes and festivals," he said.
Terming it as a "striking paradox that defines this age of global connectedness", Manwani said creating the right organisation and mindset is critical for organisations to strike a balance between going global and meeting local aspirations.
Commenting on the impact of digitisation, Manwani said it
is changing "dramatically what consumers watch and where consumers buy. For instance, in India, we have more than a billion mobile phone subscribers and e-tailing is now the fastest growing channel. Technology is creating a level playing field between developed and developing markets."

This creates an opportunity for global companies to build digital capabilities and rapidly roll out technology-based business models, said the Chairman of Hindustan Unilever Ltd.
With developing countries poised to lead the world economy, Manwani said "this is a defining moment for Indian businesses that plan to expand their global footprint.
"To be a truly global enterprise, businesses need to balance global leverage with local relevance, build an organisation that is diverse and agile, and embrace technology to serve the fast-changing needs of consumers everywhere.