Mr Sanjiv Mehta at AIMA’s 3rd Dr K S Basu Annual Memorial Lecture
Embracing ESG principles is increasingly essential for long-term sustainability, resilience, and competitiveness in today’s interconnected and rapidly changing world, Mr Sanjiv Mehta (Non-Executive) Air India & Danone, France & President Commissioner (Non-Executive Chairman) Unilever Indonesia and Former Chairman and Managing Director of Hindustan Unilever Limited at AIMA’s 3rd Dr K S Basu Annual Memorial Lecture.
While paying my due respects to Dr KS Basu, I’d like to begin by saying that the purpose of business encompasses not only financial performance but also social and environmental responsibility. Embracing ESG principles is increasingly essential for long-term sustainability, resilience, and competitiveness in today’s interconnected and rapidly changing world. By aligning their business practices with ESG goals, companies can create value for society while also driving innovation, mitigating risks and enhancing their reputation and brand value.
Environmental factors involve assessing a company’s impact on the planet, such as its carbon footprint, energy consumption, and waste management practices. Social factors encompass the company’s relationships with its employees, customers, communities, and broader society, including issues like diversity, labour practices, human rights, and community engagement. Governance pertains to the systems and processes that guide corporate decision-making, ensuring transparency, accountability, and ethical conduct.
Businesses should also consider their impact on the environment, society, and stakeholders, aiming for long-term sustainability and positive contributions to the community. By prioritising the ESG imperative, businesses can align their goals with broader societal needs and contribute to a more sustainable and equitable world.
I would recommend companies to invest in renewable energy, develop eco-friendly products and packaging to fulfil their environmental responsibilities. Businesses should look beyond profitability and be actively involved in addressing social issues by developing a culture of diversity and inclusion, ensuring fair labour practices, supporting local communities through philanthropy.
I would also like to say that businesses must maintain high standards of corporate governance, transparency, and ethics to protect stakeholders’ interests and prevent misconduct. This includes establishing clear governance structures, ethical codes, and oversight mechanisms like independent boards, audit committees and whistleblower policies.
ESG imperative emphasises that businesses have a broader responsibility beyond profit-making and should strive to operate in a manner that benefits society, the environment, and their stakeholders while ensuring long-term financial success.
In conclusion, I’d say that the purpose of business extends beyond profit maximisation to encompass value creation, innovation, employment generation, economic development, ethical conduct, trust-building, and adaptability. By embracing these broader objectives, businesses can contribute positively to society while achieving long-term sustainability and success.
Watch the full Session- https://www.youtube.com/watch?v=1e-oCLP9ilk
