Event- 107th Annual General Meeting Of The Chamber
Date- 18th June 2015
Time- 4.30 to 7.00
Attended by- Rishikesh Bhise
Mr. Ratan Tata said India's greatest weakness is weak governance and the country is yet to achieve it's full potential. He also said, whether you are a billionaire or a street vendor you are governed in the same manner. If we achieve that in our very large and diverse country, governance will take a more transparent position.
On being asked about Governance he elaborated thus:
India has endured several decades in governance that was micro managing businesses and destroying the ability to grow which changed in 1990 when India opened up.
Underscoring the importance of good governance, he said, "I believe that governance has an important role in promoting growth. It's not going to happen in uncharted waters. The government's job is to encourage growth through legislation and policies.
Opposing mandatory CSR through a 2 per cent tax, he said CSR is something that comes from within and cannot necessarily be effective in the form of a tax.
The amended Companies Act requires large companies to spend at least two per cent of their profits every year on CSR. People have asked why we have spent that kind of money which belongs to the shareholders but I believe that each company has the responsibility to work for people who are not just directly involved with the company, he elaborated that the mantra for governing a large company comprising of people from different backgrounds is: to set the value system from the top and if there are aberrations, enforce a penalty for the same.