Good governance is not the exclusive domain or obligation of the state. Business enterprises and large corporations are also obliged to play a role in ensuring good governance because they wield vast powers and discharge functions which have repercussions on the community, according to attorney general Soli J Sorabjee.
Speaking on 'Ethical obligations of business enterprises' at the fifth Vasant Sheth memorial lecture on Friday, he said "Regrettably, the common thinking of the world of trade and commerce is that ethical considerations are irrelevant. What is relevant is demand and supply and market forces in a competitive system."
"The main motivation and the prevalent temper of the times are for accumulation of wealth and power and influence without the slightest regard about the means employed. A majority of business persons have brain washed themselves into an unshakable religious belief that because of the existing proliferation of laws and the widespread prevalence of corruption at all levels, it is not possible or rather not profitable in carrying on trade or business to comply with the applicable laws and regulations."
"Therefore the question of observing ethical norms to them appears meaningless and quixotic," he said.
Sorabjee, however, struck a note of optimism when he said that enlightened companies are moving away from the assumption that the sole purpose of business is to make profits.
Increasingly, business leaders and managers are slowly coming round to the view that socially responsible practices enhance long term profitability and competitiveness.
He pointed out that the Organization for Economic Co-operation and Development has provided guidelines for multinational enterprises.
The general policies of the OECD inter alia lay down that enterprises "should contribute to economic, social, and environmental progress with a view to achieving sustainable development, respect the human rights of those affected by their activities consistent with the host government's international obligations and commitments", Sorabjee added.
He also pointed out that there is a persistent perception that business people and industrialists are largely responsible for encouraging and perpetuating corruption.
He pointed out that in this respect OECD had recommended that enterprises should enhance the transparency of their activities in the fight against bribery and extortion.
Measures could include making public commitments against bribery and extortion and disclosing the management systems the company has adopted in order to honour these commitments.
In the present climate all this would appear to be a foolish fancy and a Herculean task, he added.
This has to be undertaken in earnest if we are really serious about tackling the cancer of corruption which corrodes the moral fabric of every society and ultimately leads to its decay and disintegration, he added.