Encourage Values & Ethics in Individuals, Not Just Performance

This is the First Step towards Fighting Bribery in Business Transactions 

Certain measure to tackle the problem is by fixing standards in different industries. But it is imperative to address the fundamental question that when setting guidelines, it must be the society as a whole that benefits and not just a few persons, companies or representatives.

Christine Uriarte, General Counsel of Anti-Corruption Division at OECD applauded CII for taking leadership in this initiative and the Government effort in introducing the new international standards which will soon be enacted in the parliament to be passed as bill. This includes the Prevention of Bribery of Foreign Public Officials Bill, the Whistleblower Protection Bill, and the new Companies Bill. OECD has provided good practices guidance to several countries like Korea, Canada, South Africa for the last 14 years, effectively addressing lessons for public bribes. She said, she is particularly happy that large organizations have come forward to share their practices.

Mr Arun Maira, Member, Planning Commission defined bribery as transaction, paying to get something that one is not legally entitled to. He said that, it is the pressure to perform that makes us bend the systems. He discussed on the Corruption of concept of values. Value today is considered money and so the value of a company is measured by wealth. We create role models who have value in terms of money and are in a system where ends expressed in value terms justify the means. He emphasized the importance of focusing on the Principles of Governance in society that are needed in a democratic set up.

Mr Kiran Karnik, Former President, National Association of Software and Service Companies (NASSCOM) said, Competition is the controller and dispenser of corruption. Media activism and civil society are most critical components in fighting bribery in business transactions and that this is a developmental phase that we are passing through.

He mentioned about coercive and cohesive corruption, the former being part of the system and the latter where individuals and companies benefit. A way out he said is transparency, where Right to Information Act has been a major drive. He gave the example of land reforms in Karnataka that has led to transparency, efficiency and accountability.

The seminar saw participation from several Indian corporates, apart from Central Vigilance Commission, Central Bureau of Investigation as well as international trade and investment organizations. The seminar is a well-timed initiative at a time when United Nations Convention against Corruption and OECD Anti Bribery Convention have stepped up their efforts in the fight against bribery in business transactions. Several G20 countries including India have called for a strengthened partnership between the public and private sector for jointly developing and implementing initiatives to fight corruption.

Confederation on Indian Industry (CII) in partnership with Organisation for Economic Cooperation and Development (OECD) organized the first of its kind seminar in India on ‘Fighting bribery in Business Transactions’ today. The discussion aimed at helping Indian companies effectively overcome corruption risks that they may face in foreign markets. The seminar highlighted the Indian government’s efforts to bring Indian laws in compliance with international anti-corruption obligations in this area. 23rd May 2013

Enabling Funding Policies Is A Must To Nurture MSMEs & Sustain Economy

MSME sector is the nursery of entrepreneurship contributing substantially to the GDP, manufacturing output, exports as also is the highest generator of employment. However, this vital sector is at the crossroads in India facing numerous challenges, primary being access to credit.

CII believes that MSMEs are the backbone of the Indian economy and we are very committed to the growth and development of this vital sector. CII assists its MSME members through a vast plethora of services and platforms and today’s conference was one such initiative, shared Mr Pikender Pal Singh, Regional Director, CII Northern Region. He further shared that CII Northern Region is working on institutionalizing a regional MSME help desk which would cater consultancy services on various aspects such as finance, taxation, emerging trends in technology, etc.

Mr K H Muniyappa, Minister of State (Independent Charge) for MSMEs, Government of India shared that to ensure better flow of credit to MSMEs by minimizing the risk perception of banks / financial institutions in lending without collateral security, the Government is implementing the “Credit Guarantee Scheme” which provides guarantee cover of up to 85% on collateral-free credit facility extended by lending institutions to new and existing MSMEs for loans up to Rs.100 lakh and has provided guarantee cover for total sanctioned loan amount of Rs. 54,322 crore till April 2013. He further stated that the capital markets can play a crucial role in helping MSMEs improve their visibility and raise capital for their growth and expansion offering an effective way to improve financial inclusion.

The minister shared details of various schemes aimed at technology up-gradation, setting up of mini tool rooms under PPP mode, creating market linkages, entrepreneurship development, etc. initiated by the Ministry to enhance competitiveness of the MSME sector.

A strengthened and revitalised MSME sector can play pivotal role in bolstering the Indian economy said Mr R K Dubey, Chairman & Managing Director, Canara Bank, while addressing the representatives of the MSME fraternity from various parts of the region.

The Banks, Financial Institutions (FIs) and Non Banking Financial Corporations (NBFCs) should come forward and take the responsibility to help the MSMEs with easy and cheap credit within strict timelines and enabling schemes for the growth of MSMEs, he added while announcing the launch of Term Loan for Risk Capital Assistance (Quasi Equity) for MSMEs.

MSMEs are the locomotives of growth for any economy and forms the bottom of the pyramid of the Indian economy. The sector needs to be nurtured and supported with favourable policies of the government and the regulatory bodies, backed by sound infrastructure and transportation facilities, easy and cheap credit and given awareness about latest processes and technologies in order to help them revitalise and sustain themselves and the whole economy in turn, iterated Mr Deep Kapuria, Chairman, CII National MSME Council

Mr Kapuria further opined that enactment of the Factoring Regulation Act 2011 and subsequent allocation of Rs 500 crore to SIDBI  (in the Union Budget 2013-14) to set up a Credit Guarantee Fund for factoring are certain milestones which are expected to change the way the MSMEs finance their receivables.

Dedicted SME exchanges have been established to facilitate the MSME sector, but these have not received desired response and hence there is a need to refine our efforts primarily in terms of criteria of listing, transaction costs, etc., said Mr H P Kumar, Chairman & Managing Director, National Small Industries Corporation. He also advocated for fast-track consideration of proposals received from MSMEs as the same has also been recommended by all the committees and commissions constituted to take care of the needs of the MSME sector particularly with respect access to credit.

To tackle the challenges being faced by MSMEs, there is a need to establish a potential strategy in order to improve linkages and coordination between the Government, Industry and Academia. Dedicated stock exchanges established as per the recommendations of the Prime Minister’s Task Force though has created alternate sources of funding for SMEs, however, there is a need to considerably bring down the threshold limit and cost of transaction enabling the MSME fraternity to leverage its benefits optimally, said Mr Jyoti Prakash Gadia, Convener, CII Delhi State Council. He further shared that traditional financial channels such as commercial banks hesitate to consider financing SMEs to keep their loan accounts in good health and away from litigations.

The social contribution made by SMEs is even more significant than its economic contribution. Within the SME sector, the small sector serves as a seed-bed for nurturing entrepreneurial talent and originating units to eventually grow into medium and large enterprises. Also, lack of access to finance and timely credit as well as escalating cost are the primary reasons for under-utilisation of the manufacturing capabilities of SMEs. The promotion of SMEs, therefore, becomes a major area for policy focus, stressed Mr Naveen Munjal, Chairman, CII Delhi State Council while welcoming the dignitaries and delegates.

At Conference on MSME Funding – Opportunities & Challenges, 23 May 2013

Sustainability As A Driver For Innovation And Profit

Finding solutions for the world’s most pressing problems – in particular, poverty and climate change – is no longer the exclusive domain of governments, aid agencies and NGOs. Entrepreneurs and business leaders too are demonstrating that almost no problem is too big to be tackled through innovation.

The fact that rapid economic growth is the only realistic means to lift the poor out of extreme poverty and the fact that most economic activities depend on products and services provided by the ecosystems, necessitates the ushering of a new business paradigm which enables rapid economic growth without compromising the capacity of the ecosystem to sustain, nurture and fuel economic development and human well-being.

Sustaining global economic development will demand a substantial shift in the role of industry by bringing innovation to drive sustainability and profit. India’s rapid emergence as a global economic player is being propelled in large substance by its business and industry sector, which is increasingly contributing innovative solutions for integration of development and environmental sustainability.

Interestingly, India and other emerging regions are breeding grounds for such innovative businesses and enterprises. They have recognised the challenge early, and are responding creatively, thus pushing the envelope for their prosperity. Local firms and multinationals that have localised themselves are most likely to lead and master the change. Going forward, India and other developing economies need to address poverty alleviation as well as sustainable routes to development. Resource-efficient solutions will help companies contribute to this task, as well as add to their global competitiveness. Exploring the conclusions in this report would allow companies to work out strategies that make them winners in a low-carbon economy. CII believes that sustainable development is the future of enterprise and that this report will act as a change agent to stimulate greater efforts towards this

Amidst the emerging trends in process and product innovation, mainly in response to sustainability drivers, the WWF and CII – ITC Centre of Excellence for Sustainable Development came together to explore how businesses can use drivers such as innovation and profits to tackle the twin challenges of poverty and climate change. The resulting publication brings together case studies of how businesses have targeted sustainability without losing sight of core business objectives. It reaches a number of broad conclusions that we believe will assist other companies to formulate their own roadmaps for sustainable growth.

 

The Report on ‘Indian Companies With Solutions That The World Needs’ by CII-ITC Centre of Excellence for Sustainable Development and WWF is the first product of the Centre-WWF partnership. Click to download the report.