New Compliance Emerging On Corporate Horizon
Business is important. Making profits is also important. But, compliance will not reduce your profits, said Praveen Kumar, DG & CEO, IICA.
HYDERABAD, Mar 12 (The CONNECT) – After CSR and ESG, a new compliance called Human Rights in Business is emerging on corporate horizon, globally.
Stating this, Praveen Kumar, DG & CEO, IICA (Indian Institute of Corporate Affairs), under the Ministry of Corporate Affairs, said It is very important. IICA is taking baby steps in this subject. It may be a full-blown subject for corporate training in future, Praveen Kumar said.
Business is important. Making profits is also important. But, compliance will not reduce your profits, he said his valedictory address at the two-Day Certificate Course on Corporate Management and Governance jointly conducted by FTCCI (Federation of Telangana Chambers of Clommerce and Industry) and IICA. It is the business that drives growth and not the government. If the business grows, the country also grows. So also, the prosperity of the nation, he said.
The course was aimed at all types of Directors and Prospective Directors, corporate managers, management consultants, entrepreneurs, corporate secretarial and legal professionals, risk management professionals, corporate planning and strategy professionals, legal counsels, qualified lawyers, and CA & CS professionals who will benefit greatly from this programme. In all, 40 corporate executives and senior leaders participated in the course.
After the New Companies Act came into existence in the year 2014, Kumar said, now feather touch regulations have come in the place of strict compliance. “Under the changed circumstances, you follow the law on your own. Though it sounds good, it is also dangerous,” he sad and asked:. How do you keep vigil on 15 lakh companies.? Will all comply on our own? Some may violate their freedom. One violates, everyone suffers, he said.
The role of IICA, therefore, is helping develop and maintain a knowledge management system, covering all aspects, and issues relating to Indian and global corporate functioning.
Many new-age practices coming into existence such as CSR and ESG. Environmental, social, and corporate governance, also known as environmental, and social, governance. “It is a framework designed to be embedded in ways to generate value for all organizational stakeholders. It is very important. IICA is developing training programmes around it now. It is a need of many corporates. A few years down the line, we may encounter situations where the disclaimer on future products may read that this product is ESG compliant,” he explained.
